Many millennials have not committed to home ownership because of cost alone. The Vancouver housing market, specifically, has some expensive homes in the running that millennials cannot afford.
However, a third of Canadian millennials now own a home, but according to a global study from HSBC, two-fifths of them had assistance from their parents.
The study found that 82 percent of Canadian millennials that do not currently own a home plan to purchase on within the next five years, which falls within the expected global average. However, only half of the Canadian millennials set an approximate budget.
According to the study HSBC conducted, most millennials that do want to purchase a home do not have a high enough salary to do so.
As a result, 44 percent of Canadian millennials are expecting their parents to help them purchase their first home.
Throughout the world, 36 percent of millennial homeowners get help from their parents, and 37 percent of Canadian millennials do.
In fact, many millennials all over the world are moving back in with their parents after college or otherwise, in order to save for a home and an initial deposit.
Many Canadian millennials did express that they would buy a smaller home if they were receiving assistance in paying for it. However, many financial experts have expressed concern for parents that are willing to dish out money to help children purchase homes.
Many parents are ending up in debt or ruining their credit in order to do so which doesn’t necessarily make it a better option.
With Canadian millennials neglecting to save for down payments and often going over budget when they do purchase homes, it could be some time before we see millennials dominating the housing market in Vancouver and surrounding areas, where home prices are continuously increasing.