Young people delay marriage and children to buy a home in Ontario

The next generation of homebuyers will make sacrifices to get their own place.

A recent study found 82 per cent of young people aged 18 to 38 in Ontario believe that home ownership is a worthwhile investment.

Of those who do not currently own a home, 73 per cent say they are planning to purchase a primary residence in their lifetime, Royal LePage’s 2024 Demographic Survey: Next Generation of Buyers found.

“Owning a home is considered a valuable measure of success by many people in Canada. And, though Toronto is one of the most competitive markets in the country, young people here are very interested in purchasing real estate,” said Tom Storey, sales representative and head of The Storey Team, Royal LePage Signature Realty.

Most young homebuyers in the GTA cannot afford a single-family house but instead enter the condo market, which is a great way to build equity, Storey said.

Young people across Canada are thinking of ways to save for a home and the survey found they are willing to delay or eliminate spending on travel, cars and other major purchases.

Results from the Royal LePage’s 2024 Demographic Survey: Next Generation of Buyers

Some people will even delay getting married or starting a family to buy a home, the study found.

Among respondents in Ontario who do not currently own a primary residence, 75 per cent say that owning a home is a priority for them.

Sadly, less than half of respondents (47 per cent) believe that home ownership is an achievable goal, the lowest among all regions in Canada. Twenty-seven per cent do not believe it is achievable for them at all and 26 per cent are unsure.

When asked why the goal of home ownership is important to them, 65 per cent of the next generation of homebuyers in Ontario say they desire a permanent place to live that is their own; 62 per cent say that owning a home provides stability; and 52 per cent say that renting is restrictive due to tenant-landlord policies. Respondents were able to select more than one answer to this question.

Young people are coming to the table highly educated and taking advantage of government incentives, like the First Home Savings Account, Storey added.

“They’ve done their research, they’re asking all the right questions and are prepared to do what’s necessary in order to get on the property ladder, even if they realize it will take longer for them than it did for their parents,” said Storey. “We’re having preliminary conversations with people as young as 20 to 25 years old, even if they’re not ready to buy.”

Hill & Knowlton used the Leger Opinion online panel to survey 2,280 Canadians, aged 18 plus. The survey was completed between July 22 and 31.

See the full report from Royal LePage here.

Lead photo: Ketut Subiyanto