Real estate: 1 in 4 millennials think they will never own a house

Home prices have fallen in recent months due to interest rate hikes by the Bank of Canada. But despite the market downturn, 25% of non-homeowner millennials in Canada still say they believe they will never own a home, according to a new survey.

The online poll, conducted by Leger in June and commissioned by Royal LePage, involved 2,003 Canadians between the ages of 26 and 41.

Ontario millennials were the least likely to consider homeownership, according to the survey, with 31 per cent saying they don’t believe they will ever own a home. In comparison, only 15% of Quebecers think they will never be homeowners.

However, the survey found that 68% of non-homeowner millennials said owning a home was important to them. This figure is higher in larger cities, with 74-79% of respondents in Toronto, Montreal, Vancouver and Calgary saying they value home ownership.

“While affordability remains a challenge, Canada continues to see strong demand from millennials who, like their parents, view homeownership as a right of passage. The desire to own property remains strong among Canadians of all ages,” said Phil Soper, President. and CEO of Royal LePage, in a statement released Wednesday.

Of the 60% who said they believe they will one day own a home, just over half of those respondents said they would have to move to do so, according to the survey.

The percentage of millennials who said they believed they would one day own a home in their current city was lowest in Toronto, where just 22% said they believed it was possible to buy in the city. Meanwhile, in Calgary, where housing is considered more affordable, 47% said they believe they could own a home in their city, according to the poll.

Among those looking to buy a home within the next five years, the survey found that 41% of millennials said they plan to move to another city or town. This despite the fact that 72% of Canadians said they would prefer to stay in their current community if the cost of living were not an issue.

Additionally, 46% of respondents, including 60% of millennials in British Columbia, said they didn’t think their salary would increase fast enough to afford a home in their current city, compared to 35% who believe it will.

Soper says these numbers underscore the need « for a significant increase in the supply of housing in Canada. »

« While we are currently seeing a slowdown in market activity…we expect activity to pick up again, but not at the same pace we have seen throughout 2021 and early 2022, » Soper said in the statement.

“The return of these discarded buyers, from a growing population, largely due to increased immigration levels, as well as changes in household formation…will require more available housing to ensure a balanced market and help bring back affordability within reach of many Canadians,” he said. added.

Working from home has also changed home buying preferences, according to the survey. Of those surveyed, 20% of Canadian millennials — including 28% in Atlantic Canada — said they preferred to live out of town and work entirely remotely.

« Strong real estate demand is no longer concentrated in major centers, but has spread to many suburbs and suburbs where buyers can purchase larger, more affordable properties as tolerance for commuting decreases. and that the desire to have more flexibility in the hours and location one works increases,” Soper said.