Young Canadians Strive for Homeownership Despite Economic Barriers and Rising Rates
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Despite declining homeownership rates among young Canadians, over half of generation Z and millennials still plan to purchase homes within the next five years, as reported in a Scotiabank Housing Poll. The share of Canadian homeowners aged 18 to 34 dropped sharply from 47% in 2021 to 26% in 2024, with high mortgage rates and steep home prices creating substantial barriers for prospective young buyers. However, a significant portion of this demographic remains determined to own property despite economic challenges.
The survey reveals that 56% of gen Z and millennial respondents feel the current economy is hurting their finances, delaying their home-buying plans. Yet, 58% still aim to buy homes soon, displaying resilience amid the difficult housing market. The recent rate cuts by the Bank of Canada are expected to impact homeowners, especially younger Canadians, many of whom will renew their mortgages for the first time in the coming year — a transition that heightens concern over interest rates and mortgage terms.
Generational differences also emerged regarding priorities and confidence in the home-buying process. Younger Canadians, especially gen Z, prioritize digital accessibility, with 35% favoring a fully online mortgage application process compared to only 5% of baby boomers. Additionally, many gen Z and millennials report a lack of confidence in understanding home-buying steps, highlighting a gap in financial literacy relative to older generations.
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