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.
- 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