Canadian home buyer is Younger
The percentage of home buyers between the ages of 18 to 34 has more than tripled since the year 2000, according to the results of a CIBC mortgage poll conducted by Decima Research. This age group represented just 10% of homebuyers a decade ago, but the survey says they made up 36% of home buyers in the past four years.
More young people are getting into the housing market because financing is much more affordable, said Paul Mims, Vice President, CIBC Mortgages and Lending. Home ownership has become a reality for many 18 to 34 year olds because their mortgage payment can often be the same amount as their rent.
The average age of a Canadian homeowner has fallen from just over 48 years old in the 1990s to 41 years old since 2000. Regionally, younger buyers have increased the most in Manitoba and Quebec, while the percentage of younger buyers has increased only 2% in Atlantic Canada.
In comparing homeowners who purchased since 2000 with those who bought their home in the previous decade, the average mortgage size has risen 26% to $120,000, from $95,000 in the 1990s, likely reflecting the rise in home prices during that time period. Home buyers in Alberta carry, on average, the largest mortgage at $170,000.
The poll results also show that condominium purchases have nearly doubled since the 1990s, representing 11% of home purchases in the past four years, compared to 6% in the previous decade. Meanwhile, the percentage of single-family detached homes among home purchases fell, accounting for 66% of home purchases since 2000, compared to 74% in the 1990s.
-Article provided by the Canadian Real Estate Association (CREA)