A recent survey has highlighted a significant decrease in homeownership among young Canadians.
According to data from a Scotiabank poll released on Tuesday, the percentage of homeowners aged 18 to 34 has dropped by 21% over the last three years—from 47% in 2021 to just 26% today.
Renting and cohabitation rates rising sharply
Facing economic and market pressures, young Canadians are increasingly opting to rent or live with family compared to three years ago. Currently, 43% of individuals aged 18 to 34 are renters, up from 31% in 2021, while 29% now reside with their parents or family—a nine-point increase.
Tracy Gomes, senior vice president of Real Estate Secured Lending at Scotiabank, commented, “Canadians are encountering obstacles in the current housing market. Although homeownership may seem unattainable for many young Canadians, their desire to achieve it remains strong.”
Committed to homeownership
More than half of Millennials and Gen Zs express their intention to purchase a home within the next five years, encouraged by anticipated policy changes targeting housing and mortgage affordability (starting December 15, new mortgage reforms in Canada will raise the insured mortgage price cap to $1.5 million and extend 30-year amortization options to all first-time buyers and purchasers of new builds).
In addition to financial concerns, the confidence gap poses a significant challenge as younger generations navigate the complexities of the housing market. The survey reveals that 27% of Millennials and Gen Z feel uncertain about the home buying process.
Impending mortgage renewals for young homeowners
For young Canadians who own a home, many are approaching their first mortgage renewal, and the increasing cost of borrowing is likely to compound their housing difficulties. According to Scotiabank’s research, 72% of Gen Z and 48% of Millennial homeowners will renew their mortgage for the first time this year, in contrast to only 14% of Gen X and 10% of Boomers.
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