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Writer's pictureRoyal LePage Estate Realty

4 in 5 Gen Zs and Millennials See Homeownership as a Worthwhile Investment

Despite facing greater financial hurdles—such as rising home prices, interest rates, and living costs—many young Canadians still dream of owning property. Even with persistent challenges in housing affordability and supply, the next generation of buyers in Canada views homeownership as a valuable long-term investment.


See Homeownership as a Worthwhile Investment
"Homeownership as a Worthwhile Investment"

According to a recent Royal LePage® survey, conducted by Hill & Knowlton,2 84% of Canadians belonging to the adult generation Z and young millennial cohort – those aged 18 to 38 or born between 1986 and 2006, and referred to in this release as the next generation – see homeownership as a worthwhile investment


Among respondents who do not currently own a primary residence, three quarters (74%) of those in the next generation of homebuyers say that owning a home is a priority for them and a milestone they hope to achieve in their lifetime. Young buyers understand home ownership is expensive. Just over half (54%) of respondents believe that home ownership is an achievable goal; 26% are unsure; and, 20% do not believe it is achievable for them at all.


“It is not surprising that young buyer hopefuls see immense benefits in home ownership,”

--Said Phil Soper, President & CEO of Royal LePage.


“What is both surprising and promising in these findings is the practical and purposeful manner in which these people are tackling affordability barriers. They are well educated on the state of the real estate market and the wide variety of government programs put in place to assist young families find homes. They are hyper-focused on saving for a down payment, which is often the biggest hurdle buyers face. And, they are open to creative solutions, such as shared ownership with friends and family, or buying a property with the express intention of renting a portion of the home to a tenant.”


They are confident

75% say they are planning to purchase a property as a primary residence in their lifetime.


“The youngest cohort of homebuyers in Canada have no shortage of barriers on their path to ownership. Though the cost of borrowing has begun to come down, chronic supply shortages have kept housing prices from dropping, even as demand softened under the weight of high interest rates,” said Soper. “Despite these hurdles, the next generation of homebuyers remains committed to their pursuit of owning real estate, and are remarkably optimistic that they can make their dream a reality.” 


Among those who believe homeownership is attainable, 45% credit their diligent saving habits and feel confident they’ll have enough savings soon to buy a home. Additionally, 31% are optimistic because they expect their career path to lead to a high income, enabling them to save for a home, while 26% cite their combined household income with a spouse as sufficient for a future home purchase. Respondents could choose more than one reason in their answers.



Young buyer hopefuls

Making sacrifices to reach home ownership goals

40% of respondents who are planning to purchase a home say that their timeline to buy a property is within the next five to 10 years, while 25% say they are planning to purchase a home more than 10 years from now. Buoyed by the prospect of lower borrowing costs, nearly one in five respondents (18%) say they plan to purchase a home within the next three years, and another 13% plan to buy in three to five years.

Nearly half (47%) of prospective homebuyers report regularly setting aside a portion of their income for a down payment. Meanwhile, 42% are focused on paying off loans and bills to maintain a strong credit score, and 34% are cutting back on discretionary spending to save more. Additionally, 30% are living with family, paying minimal or no rent, to save for a down payment. Respondents could select multiple options in this survey.


Homeownership as a Worthwhile Investment
Homeownership as a Worthwhile Investment

“In pursuit of home ownership, many young people are not only pausing small daily indulgences but also making compromises that impact their long-term financial stability. This includes sacrifices like delaying education and retirement savings, and putting off other major investments,” noted Soper. “If policy makers needed yet another example of the impact of our nation’s chronic housing supply crisis on the financial security and well-being of young people, this is it.”

While parental involvement in first-time home purchases has become increasingly common in Canada, not all young buyers will be withdrawing from the bank of mom and dad. Nearly half (47%) of respondents say they will not receive any financial assistance from family members towards their home purchase. Meanwhile, 32% say they will receive some form of financial support toward the purchase of their first home.


In conclusion, despite the numerous financial challenges they face, young Canadians remain determined and optimistic about achieving homeownership. They view it as a crucial long-term investment and are taking deliberate steps to make it a reality, whether through diligent saving, career advancement, or creative solutions like shared ownership. This commitment, even in the face of rising costs and limited housing supply, underscores their resilience and adaptability. As they continue to navigate these obstacles, it’s clear that the next generation of buyers is not just dreaming of homeownership—they’re actively working towards it, ready to make the necessary sacrifices to secure their future.


Read the full press release and review the data chart for more information and regional insights:





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**1Generation Z is defined as individuals born between 1997 and 2012, while millennials are defined as those born between 1981 and 1996. For the purposes of this release, individuals referred to as ‘next generation’ refers to Canadians aged 18-38, those born between 1986 and 2006.


2Hill & Knowlton used the Leger Opinion online panel to survey 2,280 Canadians, aged 18+. The survey was completed between July 22nd and July 31st, 2024. Representative sampling was done across all provinces (Atlantic provinces were aggregated and Saskatchewan was aggregated with Manitoba), with oversampling in SK/MB, Atlantic Canada, Toronto CMA, Montreal CMA, Vancouver CMA, and Calgary CMA. Age, gender, and household ownership weighting was applied to ensure representation at a CMA/province/region level, according to 2021 census figures. No margin of error can be associated with a nonprobability sample (i.e., a web panel in this case). For comparative purposes, though, a probability sample of 2,280 respondents would have a margin of error of ±2%, 19 times out of 20.

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