GENERATION RENT: 9 million Canadians have given up on homeownership
With housing affordability at its lowest level in more than 30 years, almost one-third of Canadians say they'll never be able to buy a home.
According to a survey conducted by financial website Finder.com, 29 per cent of Canadians over 18 years old — nine million people — have either given up on ever being a homeowner or resigned themselves to being "forever renters."
The "Generation Rent" survey was conducted shortly after the Bank of Canada’s most recent rate hike and found that only one per cent were optimistic about becoming a first-time home buyer within the next five years.
"Buying a home is a significant decision that requires a large emotional and financial commitment," Finder.com finance editor Romana King said in a media release. "For many, the erosion of housing affordability combined with rising mortgage costs means the barriers to homeownership appear almost insurmountable and it’s turning a generation of Canadians into forever renters."
The number of Canadians who believe they'll purchase property within the next five years is also reducing.
In 2022 only 10 per cent believed they'd buy property within the next five years, while in 2020 that number was 17 per cent.
Between 65 and 70 per cent of Canadians own property, and while that number is high, it comes in the bottom third of 38 other countries in the Organisation for Economic Cooperation and Development.
The survey found women have slightly less desire than men to buy a house and that homeownership expectations change with age.
Unsurprisingly, younger people were optimistic about becoming homeowners.
More than one-third of those between 18 and 34 already owned a home and a further 45 per cent were convinced they'd buy a house within the next 10 years.
The 35 to 44-year-old demographic was the least hopeful with 18 per cent resigned to renting forever.
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