Young Canadians Face Setbacks but Remain Hopeful About Homeownership Amid Economic Challenges

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A recent report by Scotiabank reveals a significant drop in homeownership among young Canadians, with only 26% of those aged 18 to 34 owning homes in 2024, down from 47% in 2021. Additionally, more young adults are living with family, rising to 29% from about 20% three years ago. This shift reflects broader economic challenges and housing market conditions, which have made homeownership increasingly difficult for younger generations.

Despite these challenges, optimism remains among young Canadians, with 58% of non-homeowners aged 18 to 43 expressing intentions to buy a home within the next five years. However, many young Canadians experience a "confidence gap" around the homebuying process, and a majority of Gen Z (63%) and millennials (54%) say they need clearer guidance and information from financial institutions. This sentiment underscores the desire for more accessible and transparent financial support as they consider major financial decisions like homeownership.

Moreover, economic pressures are weighing heavily on younger Canadians, with over half reporting that current economic conditions have negatively affected their finances, delaying their home-buying plans. Rising costs of living, inflation, and high interest rates have dampened their purchasing power, prompting many to defer their aspirations for homeownership in hopes of a more favorable market in the near future.

Read the full article on: BNN Bloomberg