'Unwavering' determination: Majority of young Canadians say they plan to buy a home in the next five years
More than half of generation Z and millennials are planning to buy a home within the next five years, despite housing market challenges and an apparent decline in young homeowners, according to the latest Scotiabank Housing Poll.
Homeownership among Canadians aged 18 to 34 has fallen sharply over the last three years, dropping from 47 per cent in 2021 to 26 per cent in 2024. High mortgage rates and prohibitive housing prices have made it hard for young Canadians to enter the market.
According to the Scotiabank survey, 56 per cent of gen Z and millennials say the current economy is negatively affecting their finances and delaying their plans to buy a home. However, 58 per cent say they are still determined to purchase property in the next five years.
“Canadians continue to face barriers in today’s challenging housing market,” says Tracy Gomes, senior vice-president of real estate secured lending at Scotiabank. “While homeownership may feel out of reach for many young Canadians, their determination to achieve it remains unwavering.”
The Bank of Canada’s recent 50 basis point cut to its policy rate, the central bank’s fourth cut since June, has made for an evolving economic environment. Shifting rates are of particular concern for existing homeowners, particularly the large proportion of gen Zs (72 per cent) and millennials (48 per cent) who will be renewing their mortgages for the first time in the next year — compared to only 14 per cent of generation X and 10 per cent of baby boomers.
“Interest rates are a major concern for 68 per cent of Canadians, especially those renewing their mortgages, with 44 per cent prioritizing a competitive rate when choosing a mortgage,” according to the Scotiabank report.
Meanwhile, 37 per
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