A recent survey found that younger homebuyers are viewing homeownership as a top financial priority over other life milestones.
Houseful, a real estate technology platform owned by the Royal Bank of Canada, released a survey last week that found 78 per cent of single and unmarried first-time homebuyers under 30 are prioritizing saving for a mortgage over having a more expensive wedding. Meanwhile, 70 per cent of those over 30 indicated they are prioritizing saving for a mortgage over a more expensive wedding.
“Younger adults are increasingly conscious of ongoing housing affordability challenges, which motivates them to secure a financially stable future by seizing saving opportunities earlier,” Karen Starns, the CEO of Houseful, said in a press release.
“After getting a foothold in the market, they can gain the flexibility to pursue other life milestones that are important to them.”
Other findings included that 40 per cent of first-time homebuyers under 30 view homeownership as a “critical part of their five year plan,” the release said.
In order to meet their goals, the cohort of first-time buyers under 30 are taking steps to save. The survey found that 72 per cent of respondents in that group indicated they are allocating a portion of their monthly income toward a home, with 24 per cent saving more than 15 per cent of their earnings.
Seventy-four per cent of respondents in that group indicated they are reducing their spending on eating out and shopping.
Among first-time buyers over 30, the survey found that only 47 per cent were allocating part of their income toward purchasing a home. Additionally, only 61 per cent of those over 30 indicated they are reducing spending.
“Each person’s path to financial stability is unique to their own experiences and life journey,” Starns said.
“However, it’s promising to see the common trend among this segment of first-time homebuyers under 30 as they make tangible efforts for long-term financial planning at early stages of their adult lives.”
Methodology:
The survey was conducted by RBCx and distributed by Cint between June 27, 2024 and July 3, 2024. It took responses from 1,026 Canadians over the age of 18.
