April 12, 2017 / Published 9:12 AM EST / Rob Mann, Staff Writer
Is the home ownership dream really dead for Millennials?
Often talked about as a generation that spends with reckless abandon and doesn’t understand the latte factor, Millennials are surprisingly doing better than they get credit for. Two-thirds of Millennials are investing, and as a whole, they’re actually more concerned about saving than any other age group. Although, even with a high rate of saving, Millennials are still honest about their need and desire to gain a better understanding of finance and investing. They’re always looking to improve.
Even though they’re investing, Millennials are doing things differently, for two key reasons. First, buying a house isn’t as attainable of a goal as it was for their parents. It’s a different market now, and while the debate rages on for buying vs. renting, the fact of the matter is that owning a home is simply out of reach for many. The second reason is that also unlike their parents, many Millennials don’t have defined benefit plans or pensions, so they’re planning to take care of themselves in retirement.
Year over year, more Canadians plan to continue renting, and with ever-increasing housing prices, it’s easy to see why. And for the Millennials who do dive into the real estate market, 56% of them end up spending beyond their initial housing budget.
So if Millennials aren’t buying homes, where are they stowing their cash? Well, they (and many Canadians in general) are now viewing their TFSA as their top financial priority, over home ownership and good old-fashioned cash. But even as they come to terms with the idea that homeownership may not be in the cards, or they may have to live in a smaller space, only 29% of Millennials actually think it’s a bad time to buy a house. With that in mind, it’s apparent that the dream of buying a house is still alive, despite what the numbers and markets suggest.
Whether you’re saving up to make a down payment, or looking to beef up your investments, our trusted financial experts can help you prepare for home ownership, retirement, or a very productive rainy day. Get in touch today to find out how we can help.