This article and infographic originally appeared on rate comparison website RateSupermarket.ca. To see the full report, click here – and for the latest mortgage and bank rates, go to RateSupermarket.ca.
Buying a home today really is less affordable than in decades past, a cross-generational consensus gathered by RateSupermarket.ca reveals.
The “Not Your Mother’s Mortgage” survey finds only 46 per cent of today’s millennials (born between 1980 and 2000) said they could afford a house in their region, compared with 59 per cent of pre-millennials (born 1979 and earlier).
Of the millennials who do have the means to buy, nearly half (43 per cent) 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 per cent of millennials feel home ownership is an important life milestone, with 72 per cent feeling that renting does not provide the same value.
“It’s clear that 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 RateSupermarket.ca.
“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 per cent and 77 per cent of millennials and pre-millennials respectively worry that prices will continue to rise unsustainably. Despite this, 79 and 85 per cent of these age groups still feel housing is among the safest of investments.