The young and the priced out
Canadian families want detached homes. They just can’t afford them.
A recent study found that if money were no object, 83% of young Canadian families would purchase a detached home in the city over any other type of housing.
Not surprisingly, the 2018 Modern Family Home Ownership Trends Report also found that money is a big, insurmountable object. When reality enters the equation, and those young families consider the real estate markets in Vancouver, Calgary, Montreal and Toronto nearly half say they have abandoned the idea of purchasing a home.
The study conducted by the Mustel Group and Sotheby’s International Realty Canada found that 43% of these young, urban families who already own real estate (but not single family homes) have given up on the idea of buying a detached home. Another 18% said they were still holding out hope that they could buy such a home in the city centre, while 21% were looking outside the core.
It’s a particularly painful situation for these young families because they view real estate as a sound financial investment, with 78% believing their home will either match or outperform their other investments in the next 5 years.
Not surprisingly, the study found differences among the four markets. At 91%, Calgary families showed the highest preference for detached houses in the country. Calgarians also showed a reluctance to abandon that dream – only 37% said they had given up. This was the lowest among the four cities surveyed. And, at 74%, the city also had the highest rate of single family homeownership.
The study did find some commonalities among its subjects. In each market, respondents ranked value per square foot and move-in readiness more frequently than other features. But the biggest shared view between the cities was that the crisis of affordability in the housing markets of major Canadian cities means that, for many young families, deciding what they want in a detached home will remain an academic exercise.
To view the complete study, click here.