There has been a stark reduction in homeownership among young Canadians, according to a new survey.
Data from a Scotiabank poll released Tuesday shows the number of homeowners aged 18 to 34 plunged by 21 per cent over the past three years—from 47 per cent in 2021 to just 26 per cent today.
Renting and cohabitation rates rising sharply
In the face of economic and market pressures, young Canadians are also more likely to be renting or living at home than they were three years ago. Today, 43 per cent of those aged 18 to 34 are renters, compared to 31 per cent in 2021, while 29 per cent now reside with their parents or family—a nine-point increase.
“Canadians continue to face barriers in today’s challenging housing market,” said Tracy Gomes, senior vice president of Real Estate Secured Lending at Scotiabank. “While homeownership may feel out of reach for many young Canadians, their determination to achieve it remains unwavering.”
Committed to homeownership
Over half of Millennials and Gen Zs say they intend to buy a home within five years, spurred on by anticipated policy measures targeting housing and mortgage affordability (beginning Dec. 15, new mortgage reforms in Canada will increase the insured mortgage price cap to $1.5-million and expand 30-year amortization options to all first-time buyers and purchasers of new builds).
In addition to economic woes, the confidence gap is another major challenge as younger generations strive to navigate the complexities of the housing market. According to the poll, 27 per cent of Millennials and Gen Z say they feel uncertain about the home buying process.
Impending mortgage renewals for young homeowners
For those younger Canadians who do own a home, many are approaching their first mortgage renewal and the rising cost of borrowing is likely to add to their housing challenges. According to Scotiabank’s findings, 72 per cent of Gen Z and 48 per cent of Millennial homeowners will renew their mortgage for the first time this year, compared to just 14 per cent of Gen X and 10 per cent of Boomers.