Canadian Millennials Delay Home Purchases Due to High Interest Rates and Prices



Discover how historically high interest rates and soaring home prices are causing a significant majority of Canadian millennials to postpone their plans of purchasing a home. Learn more about the findings from a recent survey conducted by real estate brokerage Zoocasa.

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According to recent survey data from real estate brokerage Zoocasa, a significant majority of Canadian millennials have been compelled to delay purchasing a home due to historically high interest rates and soaring home prices. The survey, conducted last month, encompassed the opinions and housing preferences of over 1,600 respondents. It revealed that 62 percent of the participants had either currently delayed or recently postponed buying a home.


Canadian Millennials Delay Home Purchases Due to High Interest Rates and Prices

When examining the data by generation, the survey unveiled that 67 percent of millennials, 70 percent of Gen Zers, and 69 percent of Gen Xers have chosen to defer their home purchase, in contrast to 46 percent of baby boomers. Rising interest rates and exorbitant home prices emerged as the top two reasons cited for the delay.

Despite the challenges faced by many prospective homebuyers, the survey emphasized that the demand for homes remains robust. Approximately 66 percent of respondents expressed their intention to buy a home in the near future. However, these potential buyers are hesitant to enter the market until interest rates begin to decrease. Similarly, an equivalent percentage of survey participants revealed their plan to wait for at least a year before making a home purchase, as interest rates are not expected to be lowered until the middle or end of 2024.

Saving up enough money for a down payment has proven to be a considerable hurdle for homebuyers across all generations. Consequently, Canadians seem increasingly willing to relocate further from their preferred destinations in order to find affordable properties. The survey highlighted that 31 percent of Gen X respondents expressed their willingness to move to another city or province for the purpose of purchasing a home, compared to 26 percent of millennials and 22 percent of baby boomers.

Moreover, the survey shed light on the financial challenges faced by millennials and Gen Zers. Nearly half of the respondents from these generations stated that they would require financial assistance from relatives in order to purchase a home, whereas only 28 percent of Gen X respondents and a mere 10 percent of baby boomers expressed the same need.

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To conduct the survey, Zoocasa collected data from September 8, 2023, to September 29, 2023. The participants consisted of 1,634 Zoocasa blog readers and newsletter subscribers from different parts of Canada. They were asked 32 multiple-choice questions to gauge the current real estate outlook of Canadians. The margin of error for the survey is approximately two percent.

In conclusion, the survey findings reveal that many Canadian millennials are delaying their home purchases due to the combination of high interest rates and soaring home prices. This trend extends to other generations as well, although to a lesser extent. With the hope of eventual interest rate reductions, prospective buyers remain interested in entering the real estate market. In the meantime, Canadians are considering relocation and financial assistance from family members to overcome the financial obstacles associated with homeownership.

Canadian Millennials Delay Home Purchases Due to High Interest Rates and Prices

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