Majority of Canadians say something should be done to help
millennials get into the housing market
TORONTO, May 24, 2016 /CNW/ - Two thirds (64 per
cent) of millennials plan to make the move to home ownership,
with 63 per cent of them looking to buy in the next five
years, but nearly half (44 per cent) say they have not
started to save, finds a new poll by CIBC (TSX: CM) (NYSE:
CM) among young Canadians aged 18–34.
Faced with a myriad of financial challenges, 54 per cent
of future millennial buyers say coming up with the required down
payment is the biggest obstacle to home ownership, while
approximately half are concerned that job security (53 per
cent) and rising real estate prices (46 per cent) will
impact their ability to buy.
"Millennials want to own, and many plan to do so in the next few
years but they're facing many obstacles and competing financial
priorities," says Barry Gollom, Vice
President, Mortgages & Lending, CIBC. "It's important that they
sit down with an advisor and map out a realistic time frame for
making their dreams of homeownership a reality – it's not easy, but
it's attainable."
As millennials struggle with budgeting for home buying, the
majority (56 per cent) of Canadians are sympathetic and say
something should be done to help the younger generation enter the
housing market. In fact, three-quarters (77 per cent)
believe that buying a home is more difficult for young Canadians
today than it was for previous generations, another poll from CIBC
finds.
"It's not just young Canadians that feel that buying and
maintaining a home is a challenge for their generation," adds Mr.
Gollom. "Canadians across the board regardless of age agree and a
majority are calling out that something should be done to
help."
Key poll findings include:
- 16 per cent of Canadians aged 18-34 have already bought
a home
- 64 per cent of Canadians aged 18–34 say that their
future plans include buying a home. Among them:
- 63 per cent plan to do so within the next five years,
and
- 44 per cent have not started to save yet for their down
payment.
- 54 per cent of millennials planning to buy a home say
that saving enough for the required down payment is the biggest
obstacle to home ownership. Other roadblocks include:
- Job security and earning enough to afford mortgage payments
(53 per cent). This is the biggest concern for millennials
in Ontario (60 per
cent)
- Rising real estate prices (46 per cent). This is the key
deterrent for millennials in British
Columbia (72 per cent)
- Managing competing financial priorities, such as paying down
debt (45 per cent)
- 56 per cent of Canadians say something should be done to
help young Canadians get into the housing market, including:
- 68 per cent of Canadians aged 18-34,
- 52 per cent of Canadians aged 35-54, and
- 51 per cent of Canadians aged 55+.
- 77 per cent of Canadians say buying a home today is more
difficult for young Canadians than it was for previous
generations
Key poll findings of millennials 18-34
Percentage of millennials who are planning to buy a home in the
future:
Yes
|
64%
|
No
|
20%
|
I have already bought
a home
|
16%
|
Time frame of those millennials who plan to buy a home:
Within the next 12
months
|
14%
|
1-3 years
|
26%
|
3-5 years
|
23%
|
5+ years
|
23%
|
I have no specific
time frame yet
|
14%
|
Progress of saving for a down payment among millennials planning
to buy a home:
I haven't started to
save yet
|
44%
|
I have saved about a
quarter (25%)
|
25%
|
I have saved about
half (50%)
|
7%
|
I have saved about
three-quarters (75%)
|
5%
|
I have already saved
the full amount (100%)
|
8%
|
I don't
know
|
10%
|
Major obstacles to home ownership for millennials planning to
buy a home (multi choice):
Saving enough for the
required down payment
|
54%
|
Job security and
earning enough to afford mortgage payments and day to day
costs
|
53%
|
Rising real estate
prices and a competitive market
|
46%
|
Managing competing
financial priorities
|
45%
|
Key poll findings of Canadians
Canadians on whether buying a home is more difficult today than
for previous generations:
|
All
|
18-34
|
35-54
|
55+
|
Yes
|
77%
|
82%
|
77%
|
73%
|
No
|
16%
|
10%
|
16%
|
21%
|
I don't
know
|
7%
|
8%
|
7%
|
6%
|
Canadians on whether something should be done to help young
Canadians enter the housing market:
|
All
|
18-34
|
35-54
|
55+
|
Yes
|
56%
|
68%
|
52%
|
51%
|
No
|
21%
|
14%
|
21%
|
26%
|
I don't
know
|
23%
|
18%
|
28%
|
22%
|
Canadian Millennials 18-34 Poll Disclaimer
From April 15th to
20th, 2016, an online survey was conducted among 864
Angus Reid Forum panelists who are Canadians between 18-34 years
old. The margin of error - which measures sampling variability - is
+/- 3.3 per cent, 19 times out of 20. The results have been
statistically weighted according to gender and region (and in
Quebec language). Discrepancies in
or between totals are due to rounding.
Canadian Adults Poll Disclaimer
From April 19th to
20th, 2016, an online survey was conducted among 1,500
randomly selected Canadian adults who are Angus Reid Forum
panelists. The margin of error - which measures sampling
variability - is +/- 2.5 per cent, 19 times out of 20. The results
have been statistically weighted according to age, gender and
region (and in Quebec language)
Census data to ensure a sample representative of the entire adult
population of Canada.
Discrepancies in or between totals are due to rounding.
About CIBC
CIBC is a leading Canadian-based global financial institution with
11 million personal banking and business clients. Through our three
major business units - Retail and Business Banking, Wealth
Management and Capital Markets - CIBC offers a full range of
products and services through its comprehensive electronic banking
network, banking centres and offices across Canada with offices in the United States and around the world. You
can find other news releases and information about CIBC in our
Media Centre on our corporate website at
www.cibc.com.
SOURCE Canadian Imperial Bank of Commerce