Canadians who don’t yet own a home now expect to be 41 years old before buying their first one, 12 years older than the average age at which current homeowners made their purchase, according to a new poll from the Royal Bank of Canada.
The survey found that about half of non-homeowners don’t have any sense of when they might be able to buy. RBC’s report noted that many first-time buyers now expect to purchase more than a decade later than current homeowners did.
Most respondents, 74 per cent, said buying a home today is more complicated than it was for previous generations. The poll also found growing skepticism toward older generations’ perspectives on the market: 65 per cent said past generations don’t understand the challenges facing today’s buyers, and 52 per cent said advice from older generations no longer applies.
Multi-Generational Living on the Rise
The poll found that many Canadians are turning to multi-generational living as a strategy to enter the housing market. Among those planning to buy a first or next home within two years, 53 per cent said they would consider a multi-generational home. Among existing homeowners, 35 per cent said they would sell their current home and buy a new one jointly with their child to help that child get into the market.
Nearly 35 per cent of prospective buyers cited housing affordability as a reason for considering this approach, while 32 per cent said it was a smart way for families to manage housing costs. For 26 per cent of prospective buyers, the arrangement was described as more out of necessity than choice.
“Canadians are finding new ways to make one of life’s biggest purchases possible,” said Janet Boyle, senior vice-president of home equity finance at RBC. Boyle said many families are pooling funds together to buy sooner and share costs.
Timing the Market and Renewal Stress
The report also pointed to competing anxieties among prospective buyers about when to enter the market. Half of those surveyed worried that waiting too long could price them out of a home, while others expressed concern about buying now only to see prices fall afterward.
Mortgage renewals are adding to the financial pressure. Among current homeowners renewing within the next two years, 51 per cent said the process feels almost as stressful as buying their first home. The poll found 82 per cent are concerned about interest rate increases in the coming year, 60 per cent expect their next renewal to strain household finances, and 42 per cent wish they had started planning for their renewal earlier.
“Canadians are trying to make one of life’s biggest decisions in a complex market, and that’s genuinely difficult,” Boyle said.
RBC’s homeownership poll was conducted through an online survey of 1,810 Canadians aged 18 to 64 between Aug. 5 and 24, using Leger’s online panel.
This article references reporting from:
