Nearly half of Ontarians under 40 have given up on the dream of home ownership
Owning a home in Ontario has long seemed out of reach for the young people of the province, especially in Toronto, and a new poll indicates that nearly half of non-homeowners under 40 have let go of the dream altogether.
According to RBC's Spring Housing Poll, released Monday, 39 per cent of non-homeowners under 40 in Ontario say they've given up on the dream of ownership as the average house price in the province sits at roughly $887,695.
The Ipsos poll, which was conducted between Jan. 21 and 28 on behalf of RBC and surveyed a sample of 2,000 Canadians aged 18 and over online, found that 71 per cent of Ontarians believe most Canadians will be priced out of the housing market in the next decade.
But while a significant portion of Ontario's younger generation has accepted that they'll likely be tenants for life, 83 per cent of all Ontario respondents said they still believe buying a property is a very good investment.
And with 44 per cent of Ontarians surveyed saying they've been able to save more during the pandemic than they could before, it seems these turbulent times have actually aided many people in being able to put money away for a hefty down payment.
In total, 28 per cent of Ontario residents of all ages said they are likely to purchase a home in the next two years. This, according to the poll, is partially thanks to low interest rates — with 35 per cent saying this is the reason they're thinking about buying a home sooner rather than later.
"Many factors are on the minds of Canadians when thinking about whether to buy now or buy later," reads a news release about the survey. "According to the poll results, interest rates and concerns that homes will become less affordable are key reasons why many Canadians are considering buying sooner."
Of those Ontario residents who said they're likely to buy within the next two years, 54 per cent said they're saving an average of $1,000 per month for a down payment, 85 per cent have some money saved for a home purchase (with $50,000 in savings on average) and 32 per cent said if they do purchase a new home, their budget would realistically be under $500,000.
"Building up a down payment can often be the biggest barrier to buying a home, especially as prices continue to climb in the pandemic environment," said Amit Sahasrabudhe, vice-president of home equity financing, products and acquisitions for RBC, in a statement.
"While everyone's financial situation is different, many Canadians have been taking advantage of reduced spending over the year to build up their savings and get closer to making their dream of owning a home a reality."
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