Most adults these days are doing things much later than was typical 30 years ago. You can likely name a handful unmarried 30-year-olds, maybe even a few who still live at the old family homestead. Regardless of this shift, a recent study spearheaded by the Ontario Real Estate Association (OREA) found that a high percentage of Generation X’ers (those born 1965-1980) and Generation Y’ers (those born 1981-1999) have many of the same goals when it comes to home ownership.
The study, conducted by Ipsos Reid on behalf of OREA, examined public opinion in Ontario on a variety of matters pertaining to the Ontario real estate market. The results show that 77 per cent of Gen Y and 79 per cent of Gen X respondents say that home ownership is important to them.
A significant percentage of Gen Y and X’ers - 76 per cent and 82 per cent respectively - think it makes more sense to own a home rather than rent over the long-term. Furthermore, 73 per cent of Gen Y and 82 per cent of Gen X believe real estate is a good investment.
So why aren’t more members of Gen X and Gen Y homeowners already? There are a number of reasons why some - particularly Gen Y members - are holding off on purchasing a home. The first obstacle this demographic contends with is the high student debt they have incurred from post-secondary schooling. According to the Canadian Federation of Students, the average graduate owes approximately $25,000. Another obstacle is the low salaries young people face straight out of school, which have definitely not kept up with house price gains over the past five years. And finally, while mortgage interest rates are much lower than they were 30 years ago, the price of houses in many Canadian cities have gone up drastically.
Despite the struggle, both groups have a positive outlook. Looking ahead to the next 10 years, 50 per cent of Gen Y and 48 per cent of Gen X ‘ers believe the provincial real estate market will be stronger.