Home ownership desired by majority of Canada’s Generation Y, reveals real estate survey

VANCOUVER DESI

Members of Generation Y would like to emulate Baby Boomers and establish homes for themselves, despite the challenges they face doing so, says Phil Soper, CEO of Royal LePage Real Estate.

Members of Generation Y strongly desire a house of their own but they’re pessimistic about their ability to do so, according to a new Royal LePage Real Estate survey released on Wednesday.

The survey, which was conducted by Leger Marketing, said 80.9 per cent of the Generation Y (born between 1980 and 1994) respondents said they have plans to move to another primary residence at some point in the future with 39 per cent stating a move is planned within the next two years.

However, the majority of the young generation feel pessimistic about their ability to own a home because of current house price affordability as 44.2 per cent “somewhat agree” with this feeling and 28.3 per cent “strongly agree.”

Of those who are planning a move, 55.1 per cent of Generation Y intend to purchase their next primary residence while 32.6 per cent plan to rent.

“Baby Boomers have built homes for themselves. They are established in their neighbourhoods and their residences have become a place of happiness for family and friends,” said Phil Soper, CEO of Royal LePage Real Estate.

“It’s their children that are seeking to create a similar atmosphere of their own, even though new impediments exist for this younger generation.”

While Generation Y is more likely to rent their primary residence at this stage in their lives, they do not see this as a desirable long-term solution. An overwhelming 85.7 per cent disagreed with the statement that “I do not desire to own a property in my lifetime as renting is preferable to me,” including 90.5 per cent of Quebecers. British Columbians in the same age group were among the most open to renting, with one-in-five (21.4 per cent) saying they prefer renting over home ownership.

Of those who are planning a move, 55.1 per cent of Generation Y and 60.1 per cent of Baby Boomers intend to purchase their next primary residence. While the majority prefers to purchase their next home, a sizeable proportion of Generation Y (32.6 per cent) says they plan to rent. When examined regionally, there are some interesting divergences in intentions on buying versus renting. For instance, Generation Y in the Prairies and Quebec (62.6 and 61.3 per cent, respectively) intend to purchase their next primary residence. On the other hand, British Columbians in the same age group are less likely to become home buyers, with 38.3 per cent stating that they intend to rent their next primary residence.

— with files from Postmedia News

Tags: Canada, Generation Y, home ownership