Ratesupermarket.ca is now RATESDOTCA. Compare to save.

mothers-mortgage_51.jpg

RATESDOTCA's "Not Your Mother's Mortgage" survey finds affordability gap between generations

Buying a home today really is less affordable than in decades past, a cross-generational consensus gathered by RATESDOTCA reveals.

The "Not Your Mother's Mortgage" survey finds only 46% of today's millennials (born between 1980 - 2000) could afford a house in their region, compared to 59% of pre-millennials (born 1979 and earlier).

Of the millennials who do have the means to buy, nearly half (43%) indicated a condo or townhome is their only affordable option.

The survey, which polled Canadians of all ages on their home buying sentiments, also found that despite being increasingly expensive, 91% of millennials feel homeownership is an important life milestone, with 72% feeling that renting does not provide the same value.

"It's clear owning your own home is still an important part of the great Canadian dream, despite the financial hardships incurred along the way," said Penelope Graham, Editor at RATESDOTCA. "These attitudes - coupled with today's record-low interest rates - are likely driving housing prices in Canada's most competitive markets."

The survey found a considerable amount of anxiety exists over the future of Canada's market: 88% and 77% of millennials and pre-millennials respectively worry that prices will continue to rise unsustainably. Despite this, 79% and 85% of these age groups still feel housing is among the safest of investments.

Survey Highlights

  • 84% of millennials and 86% of pre-millennials feel housing, in general, is less affordable today.
  • Despite affordability challenges, 72% of millennials expect to buy a home over the next 5 years.
  • 49% of millennials believe today's low mortgage rates help with affordability, compared to 66% of pre-millennials.
  • 17% of millennials and 13% of pre-millennials believe low mortgage rates are contributing to overheated home prices in Canada.
  • 79% of millennials are discouraged by today's real estate prices, vs. 76% of pre-millennials
Penelope Graham

A first-time homeowner and newbie investor, Penelope Graham is the quintessential millennial, navigating the world of personal finance and wealth management. A self-professed monetary policy nerd, she follows the often-controversial housing market closely and specializes in mortgage, credit card and personal finance news.

Recent News Articles
5 Simple Things You Can Do to Use Your Credit Card Better
Your credit card may offer you a variety of perks that can save you money. However, it’s up to you to use them.
Could Variable Rates Still Fall?
Many have given up on variable rates, figuring they’re about as low as they can go. And for existing variable-rate holders that may be true, assuming the Bank of Canada doesn’t surprise everyone.
71% of Young Canadian Drivers Admit to Texting While Behind the Wheel
As Canada’s National Teen Driver Safety Week kicks off, a new RATESDOTCA survey of young drivers uncovers some alarming results when it comes to distracted driving.