The dream of owning a home is not in fact dead for Canadian millennials — at least, for some — despite ever-present challenges to save money.
That’s according to a new poll released Tuesday by HSBC, which questioned 9,000 young people across nine countries – including 1,000 living in Canada.
About 34 per cent of millennials in this country already own a home, and eight in 10 of those who haven’t already made a down payment, plan to do so in the next five years.
The problem is that this group is still having a hard time saving, or isn’t bothering at all.
Almost 30 per cent of respondents in Canada reported having no savings plan, while 53 pre cent have an “approximate budget.”
About 37 per cent of millennials who already own a home went to the “Bank of Mom and Dad,” according to the survey, while about 20 per cent moved back in with their parents to save cash.
The group Generation Squeeze adds to the bleak picture: it takes millennials in B.C. about 16 years to save for a 20-per-cent down payment – more than a decade longer than it took in 1976. In Vancouver, it takes a further seven years.
“The reality is, it’s a challenge,” Larry Tomei, executive vice president at HSBC said. “So I can’t stress enough the importance of having a good plan that includes getting the right financial services advice and support before and after you buy.”
When millennials finally buy a home, almost half of them struggle to stick to a budget within the first two years – often overspending, leading them back to Mom and Dad’s wallets.
More than half know saving would require spending less on leisure activities and going out. One third said they’re even prepared to delay having children.