In 2021, Mary Kehoe was living at her family home in Pickering with dreams of buying a house.
But after three years of renting in Toronto and starting a business, the 29-year-old’s savings had dwindled — and owning a home felt out of reach.
Now, she, her husband, and two friends rent a semi-detached home in Mount Pleasant.
“That first down payment, it seems like this whole unattainable goal,” said Kehoe.
“I do hope in future I’ll be able to, but right now, it’s definitely not a priority… because I’m living the way I want to and it seems to be working without owning a home right now.”
The feeling that home ownership is out of reach is shared by many young Ontarians, according to a Royal LePage survey released this week.
The survey, conducted in July by communications firm Hill & Knowlton using Leger Opinion’s online survey tool, asked 2,280 millennials and adult Gen Zs (defined as residents aged 18 to 38) Canada-wide about their home ownership goals and how they plan to achieve them. Of those who responded, 576 were in Ontario.
Majority still aspire to be homeowners
According to the survey, 75 per cent of young Ontarian respondents who don’t currently own a home say purchasing one is a priority.
But only 47 per cent of them believe that home ownership is attainable — the lowest score among all regions in Canada. Twenty-seven per cent don’t believe it’s achievable at all and 26 per cent are unsure, the survey found.
“Even though we know young people are facing more financial obstacles than their parents did, the vast majority of them still continue to aspire to become homeowners,” said Karen Yolevski, chief operating officer of Royal LePage.
“While they want to own a home, there is some sentiment in the survey that it may not be achievable.”
Home prices in Ontario remain elevated, despite drops from the height of the COVID-19 pandemic due in part to weak demand amid high interest rates.
The average price of a residential home in Ontario in July was $837,685, according to the most recent MLS Home Price Index. In Toronto, that number is $1,082,500. The average price of a single-family detached home in Toronto is $1,689,500, while an apartment is $707,800, according to the index.
Respondents want permanent place to live, stability
Asked why home ownership is important to them, Ontario respondents expressed a desire for security and stability over a desire to earn money or build equity.
Sixty-five percent said they want a permanent place to live of their own, while 62 per cent said owning a home provides stability. Fifty-two per cent said that renting is restrictive due to tenant-landlord policies, such as those covering pets and rules around decor.
Less than a third said they want to reap the financial benefits of home equity and price appreciation, or that home ownership is part of their retirement plan.
For Kehoe, the benefit of home ownership is the security of having your own place that you can modify and grow old in.
But Yolevski says that despite what ownership represents, “there is a disconnect between what one wants and desires, and what a home would do for someone, versus what is actually going to be achievable based on current income, current career trajectory, current savings.”
Prospective homebuyers saving, reducing spending
Across Canada, 40 per cent of respondents who want to purchase a home say they plan to buy within the next five to 10 years, while 25 per cent say they are planning to purchase a home more than 10 years from now.
Yolevski says the survey shows those hoping to buy a home are making financial decisions and sacrifices to get into the housing market.
Of the 54 per cent of Canadian residents who say they believe home ownership is achievable, 45 per cent of respondents say they are saving diligently, 31 per cent say they are on a career trajectory that will earn them a high income, while 26 per cent say that they and their spouse have a high enough combined income to afford a future home purchase.
Others reported reducing discretionary spending, including living with their parents longer, eliminating travelling and not buying a car.
Kehoe says instead of saving for a home, she’s prioritizing growing her freelance book editing business and saving up so she and her husband can start a family.
“We kind of have to weigh up those options… Having kids is expensive too,” she said.
Survey results ‘encouraging,’ agent says
Desmond Brown, a real estate agent with Re/Max Hallmark in Toronto, says the results are encouraging because they show this generation understands the value of home ownership.
“They’re saying, ‘Wow, my parents did it. I think we can do it,'” said Brown. “A lot of people slam this generation, saying that they don’t look out for the future and all that, but this survey is showing otherwise.”
Brown says while it’s encouraging that Ontarians are saying they want to buy property, the reality is that many are priced out of Toronto. He says homes in York and Simcoe regions, Ottawa and Southwestern Ontario remain relatively affordable.
John Pasalis, president and broker at Realosophy Realty, said the disconnect between house prices and incomes in Toronto means some are leaving Ontario in order to be able to afford a home in other cities.
Many who can buy in Toronto are getting help from their parents, Pasalis� said.
“When I got in this business 15 years ago, the gifts were 20 to 30 thousand, and today they’re almost always six figures,” Pasalis said. “Largely because it’s so much harder to get into the market.”
The Royal LePage 2024 Next Generation Survey was completed between July 22 to 31. While no margin of error can be associated with a non-probability sample conducted by web panel, a similar probability sample of 2,280 respondents would have a margin of error of plus or minus two per cent, 19 times out of 20.