Young Canadians are losing homeownership hope

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Gen-Zers and millennials are losing hope of homeownership being achievable in their lifetimes, and some are even giving up on making it a lifetime goal.

It’s come to the point where most Canadians between the ages of 18 and 44 in every province feel homeownership is not a possibility in their lifetime, according to a survey by Easy Home Renovation.

There remain some pockets of optimism, most notably in Quebec, Newfoundland and Labrador, Saskatchewan, Nova Scotia and Alberta, where more than 30 per cent of younger adults believe they will own a home one day, though less than 20 per cent of those in Ontario and British Columbia believe it’s a possibility.

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“Rents remain high, mortgage rates are still well above pre-pandemic lows and population growth continues to skyrocket,” the report said. “Couple that with the fact that many new builds in major metros are condos, rather than single-family homes, and it’s no wonder we’re seeing the disillusionment among these generations.”

Drilling deeper down into the data, there is not a single city where most young people believe they can own a home, with optimism rates ranging from 46 per cent in Regina to just six per cent in Vancouver.

The feeble optimism is changing how young Canadians view their goals, with 63 per cent of millennials viewing homeownership as a primary goal in their life compared to 53 per cent of gen-Zers.

The housing crisis has also altered family plans for 27 per cent of millennials and 26 per cent of gen-Zers.

In April, the federal government announced a plan to address Canada’s housing crisis by creating 3.87 million new homes by 2031. The plan included $15 billion in loans for apartment construction and extended mortgage amortization periods to 30 years, among other initiatives.

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Still, many young Canadians blame government inaction for unaffordable housing costs.

Easy Home Renovation’s survey said 33 per cent of millennials and 36 per cent of gen-zers blame the government for the lack of housing supply, while insufficient income, interest rates and immigration were other factors cited.

“This widespread finger-pointing toward national policy and economic realities indicates that younger Canadians overwhelmingly view housing affordability less as an individual failing and more as a systemic issue,” the report said.

With turmoil on Parliament Hill and a potential election on the horizon, young Canadians say they have mixed feelings when it comes to how a change in leadership might help their homeownership prospects.

The survey said 42 per cent of millennials believe a Conservative government could help affordability, compared to 30 per cent of gen-Zers.

“Whether it’s cynicism or realism, gen Z appears less convinced that any government, even with a new political leaning, will fundamentally fix housing,” the report said. “Millennials are slightly more hopeful, though respondents seem to believe it will take more than changing the stripes of the party in power to restore a sense of affordability and opportunity.”

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The United States dollar jumped after President Donald Trump said he’s considering “much bigger” global import tariffs than those previously suggested by a top official.

Treasury Secretary Scott Bessent had recently suggested a 2.5 per cent tariff on all imports to the U.S., but Trump on Monday said he is considering a steeper levy on international products.

Investors are bullish on the greenback as they believe tariffs would fuel price pressures and keep U.S. interest rates elevated.

Trump has also proposed a 25 per cent tariff on all imports from Canada and Mexico.

Read more here.

• 9:45 a.m.: Bank of Canada interest rate announcement and quarterly Monetary Policy Report
• Ontario Premier Doug Ford to announce a provincial election
• 2:00 p.m.: U.S. Federal Reserve announces its interest rate decision followed by press conference with chair Jerome Powell
• Earnings: Microsoft Corp., Meta Platforms Inc., Tesla Inc. ASML NV, IBM Corp., Canadian Pacific Kansas City Ltd.

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When it comes to investing, it’s important to know that past performance does not equal future results and instead focus on meeting financial goals, says investing pro Martin Pelletier. The “goals-based” approach involves mapping out a specific target return required to meet your financial needs, goals and objectives and then designing a portfolio to achieve it while mitigating the associated risks as much as possible. Learn more

Calling Canadian families with younger kids or teens: Whether it’s budgeting, spending, investing, paying off debt, or just paying the bills, does your family have any financial resolutions for the coming year? Let us know at wealth@postmedia.com.

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

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