Millennials, Gen Z set to buy homes within five years despite tough Canadian economy: report

Most people think of the words “expensive,” “out of reach,” or even “impossible” when it comes to the younger generations buying homes in Vancouver.

While some of those attitudes may hold true, more than half of Canadian millennials and Gen Z, according to a new Scotiabank report, are still set on buying homes in the next five years despite the high cost of living.

“Within my friend group, it’s kind of a big deal right now, kind of an urgency to be able to buy a house,” a Vancouver resident told The Leader Spirit Vancouver. “A few of my friends already have purchased but we definitely have a couple who, they just got engaged and they’re expecting, and now it’s like, are we going to be able to? That’s definitely on their radar.”

Another Vancouverite says they are determined to find a home as a couple but “at some point financially, we might have to choose to go somewhere else, outside of Vancouver, the Lower Mainland, something that we can afford.”

The report from Scotiabank says in B.C. across all age groups 39 per cent of all respondents were looking to buy a home within five years which is about on track with the rest of the country at 42 per cent.

While fewer younger Canadians own a home today compared to three years ago, realtor Kit Sorongon tells The Leader Spirit Vancouver that he’s not surprised by their unwavering determination to buy.

“They’re waiting for the opportunity to be able to be qualified and be able to afford, and that’s why their prediction of the next five years, that’s actually very, very accurate, and very realistic,” Sorongon said.

The report says more than half of Millennials and Gen Zeds find the economy is pushing back their home-buying plans, but the demand for homeownership is still strong.

Sorongon says he expects more younger clients to qualify for a mortgage because the Bank of Canada cut its key interest rate by half a percentage point last week.

“Having that already intimate desire to own a property with all the signs showing up, it gives them the optimism to be able to purchase again,” he said.

In B.C., the number of homeowners remained steady at 59 per cent this year, while fewer are renting and more are living with family.