RATESDOTCA survey finds real estate prices hinder millennials' ability to start a family
The pitter-patter of little feet around the family home is becoming a financial luxury, as more than half of Canadians feel they cannot afford both family life and homeownership.
The Terrible Money Twos survey by RATESDOTCA, Canada's comprehensive financial rates comparison resource, finds 55.6% of respondents believe their ability to start or expand their family is directly impacted by real estate prices in their region. The challenge is even greater for millennials, at 72.11%.
The survey, which polled 1,700 Canadians on their family affordability sentiments, highlights how tough it is for today's young adults to achieve financial milestones in the face of historically high housing costs, childcare costs and household debt levels.
"While it's no surprise that kids are hard on the wallet - at a quarter of a million dollars to raise a baby to college-age - it is disheartening Canadians increasingly feel they must choose between homeownership and their desire to be parents," says Penelope Graham, Editor at RATESDOTCA. "Rising home prices, especially in Canada's urban centres, are making it tougher for millennials to follow their family dreams."
"It's more important than ever that would-be homeowners compare their mortgage options and boost their affordability with truly competitive financing."
Existing debt also plays a role in respondents' family decision making, with 46.4% of millennials saying it prevents them from growing their family. Another 60.24% said they would rely more on credit to afford the day-to-day expenses of family life.
Lack of affordable childcare was cited by respondents as a top financial challenge; only 15.21% of all respondents say childcare is affordable in their region, with 41.9% indicating they do, or will, rely on one parent staying home full-time in order to provide childcare. 48% stated that childcare costs impacted their affordability for other things.
Survey highlights: