Pandemic Helped Pave Path to Homeownership for Young Canadians
Friday Feb 26th, 2021
While COVID-19 did bring a sense of uncertainty to the housing market last year, it turns out the pandemic helped pave the way to homeownership for some young Canadians.
It was conducted that nearly half (48%) of Canadians aged 25 to 35 currently own their home, and 25% of these homeowners purchased a property during the pandemic.
It’s clear that confidence in Canadian real estate remains strong, and, despite economic challenges related to the pandemic, young Canadians appear to be as ambitious as ever — especially when it comes to buying their own digs.
Sixty-eight percent of respondents said they plan to buy their own home in the next five years, 16% said they plan to purchase a property within the year, while 14% say they will buy within one to two years and 39% say they are looking to purchase in two to five years.
Mortgage rates fell to historically low levels and the competition for entry-level housing lessened.
Luckily, 41% of Ontarians in this age group say the pandemic has allowed them to save more, so the dream of homeownership might not be that unattainable for some.
COVID-19 has also made moving outside of the city more desirable for residents, with 46% of respondents saying they are interested in moving to a less densely populated area in the Greater Toronto Area (GTA).
Because it’s no secret that homeownership is expensive, especially here in the Toronto-area, where the average selling price was up by 15.5% to $967,885 in January, an increase from $838,087 in 2020.
But, thanks to low borrowing costs, increased savings, and the need for more space, fresh-faced young Canadians continue to be drawn to markets across the province and purchase a home of their own– a trend we hope will continue.