US & Canada
A recent study by Nanos Research Corporation for the Ontario Real Estate Association (OREA) shows that in spite of the provincial government’s plan to help make residential properties more affordable, 68.5% of young Ontarians feel that home ownership remains unaffordable in their neighbourhood.
OREA stated that the research underlines the importance of affordable home ownership among voters who will participate in provincial election in the coming June. Approximately 7 in 10 Ontarian millennials agree or somewhat agree that they are more likely to vote for a political party that is committed to helping them own homes.
“The dream of home ownership is slipping away for an entire generation of young people,” OREA CEO Tim Hudak said. “Nearly half of Ontarians between the ages of 25 and 34 are still living at home with their parents. These are people who’ve done everything right – gone to school, worked hard, paid down their student loans – yet they’re struggling to take that next step in life to own a home. We need action to address this problem.”
78% of Ontario’s millennials agree or somewhat agree that the government should do more to help young people overcome the housing affordability hurdles. Saving enough for the down payment is the most significant obstacle to owning a home for 41% of young Ontarians, followed by getting a mortgage approved at 22%.
What’s more, the problem of unaffordability does not seem limited to the younger generation. 58.7% of non-millennials in the province agree or somewhat agree that home ownership is unaffordable in their neighbourhoods.
“To date, most government action has been around higher taxes or making a mortgage more expensive - none of this is helping people get into the housing market,” Hudak explained. “It is time to take a different path. Keeping home ownership within reach comes down to increasing housing supply in Ontario, particularly ‘missing middle’ housing, like townhomes and mid-rises, and providing first time home buyers with some relief like increasing the first-home buyer tax rebate and helping with down payments.”