8 in 10 Millennials Intend to Buy in 5 Years



About a third (34%) of millennials (Canadians born in the 80s and 90s) are homeowners, finds a new HSBC survey.

Of those who don’t own, 82% plan to buy in the next five years. But there’s a minor problem:  70% of them haven’t saved enough for a down payment.

Enter the parental units.

Dependent supporters are rushing to the rescue of a small chunk of newbie buyers. 

If history is a guide, in 2017:

  • roughly 37% of millennials will take parental support for part or all of their down payment
  • about 21% will move back in with the ‘rents to save their down payment (recent empty-nesters, don’t turn your basements into storerooms just yet).

For millennials who can’t qualify for a mortgage (for example, who don’t pass the government’s new 4.64% stress test):

  • 59% would “consider” spending less on leisure and going out
  • 37% say they’d consider a smaller than ideal home
  • 30% would consider delaying children.

So there we have it, more casualties from the new mortgage rules: theme parks, bars and child-care workers. Bet that wasn’t an “intended consequence.”


Daily Fact: Twice as many millennials in China own a home; 70%, versus 34% here in Canada. 

Related Posts

Comments

  1. Comment avatar

    Adam    

    I’ve found that a lot of Millennials go for the same “smaller than ideal” house option. Great read! Thank you!

     

Leave a Reply

Your email address will not be published. Required fields are marked *

2 × one =