57% of Canadian millennials believe they can afford a home

Bruno Cirelli
Agosto 18, 2017

While 86 per cent of Millennials in BC believe owning a home is a good investment, 83 per cent say that housing in their region is too expensive.

"The pent up demand for housing from millennials is enormous, with only a third of this large demographic now owning a property and an overwhelming majority desiring to be homeowners".

The online survey of 1,000 peak millennials, completed between June 7 and June 14 2017, found 61 per cent of respondents across the country would prefer to buy a detached home, but only 36 per cent believe that they will be able to afford one. At 42 per cent, they also are the least likely to say the new federal mortgage regulations have impacted their purchasing power.

A new cross-Canada survey suggests that people aged 25 to 30, which makes up the so-called millennials' demographic, have a strong desire for home ownership but believe a number of factors, including limited inventory and high home values, are pricing them out of their dream.

"Facing challenges their baby-boomer parents never encountered, peak millennials are confronted with significant obstacles that vary depending on where they live", Royal LePage chief executive officer Phil Soper said in statement.

Now market activity is ramping up in Vancouver's surrounding suburbs of Burnaby and Coquitlam as buyers are able to find more affordable options, says Dinani. "We expect demand from this demographic to put additional pressure on entry-level housing and investment properties being used to supplement the limited inventory of purpose-built rental buildings".

The survey also found unaffordability wasn't the reason cited by most of the Manitoba/Saskatchewan peak millennials who aren't planning to buy a home within the next five years; rather, 57 per cent of them said it was because said they want to wait until they can afford the type of home they want, and 47 per cent said they're waiting until their jobs are more secure.

Fifty-three per cent of the respondents nationally said they are willing to spend up to $350,000 for their home purchase.

"By focusing on vertical living, and developing larger, affordable condominiums in urban markets, supply limitations would ease, providing long-term, appealing solutions to young buyers in search of affordable property", Soper said.

Three-quarters of respondents said they would use their personal savings for a down payment, while only one quarter said they would seek another source of funding, including help from their parents.

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