In the face of economic challenges and trade tensions, many Canadian millennials are undeterred in their quest to buy homes. A recent survey by Wahi reveals that approximately one in four millennials (25%) are poised to purchase a home this year, marking a slight increase from the previous year. This trend raises questions about the motivations driving this generation, especially when larger economic factors are at play.
What does this mean for the housing market? This article delves into the current homebuying intentions across various age groups, examines regional differences, and explores how economic conditions influence purchasing decisions.
Millennials: A Resilient Homebuying Force
Despite uncertainties surrounding tariffs and job security, millennials remain committed to homeownership. According to Wahi’s survey, the steady interest from this demographic suggests a strong desire to invest in real estate, even when facing economic headwinds. Interestingly, the overall homebuying intentions among all age groups have remained stable at 17%.
Ryan McLaughlin, an economist at Wahi, notes that “it’s encouraging to see that even against a more challenging economic backdrop, overall homebuying intentions don’t seem to have eroded.” This determination might reflect millennials’ advancing careers, positioning them better to navigate financial uncertainty compared to younger generations.
The Next Generation: Gen Z’s Homebuying Aspirations
While millennials lead the way, Gen Z is also showing interest in homeownership. Around 15% of Gen Z respondents indicated plans to purchase a home soon, although this is a drop from 20% last year. This suggests that while they are interested, they may still face significant barriers as they enter the workforce.
As McLaughlin points out, “Millennials are further along in their careers and are therefore likely better able to weather the effects of economic uncertainty than their Gen Z peers.” This disparity highlights the varying stages of financial stability between the two generations.
Insights from Gen X and Baby Boomers
Homebuying intentions among Gen X remain unchanged at 18%, while baby boomers show a slight increase, with 10% indicating they may buy property this year. Older Canadians often have existing equity in their homes, making them less susceptible to market fluctuations.
This stability in purchasing plans may reflect a more cautious approach, as many baby boomers look to downsize or relocate rather than purchase new properties.
Regional Variations in Homebuying Intentions
Geographically, the desire to buy homes varies significantly across Canada. British Columbia, Ontario, and Alberta stand out as provinces with the highest living costs, yet they also report a strong interest in homebuying.
In British Columbia, 20% of residents say they are likely to purchase a home this year. McLaughlin attributes this to decreasing home prices, suggesting that potential buyers might seize the opportunity before prices rise again. Meanwhile, Alberta maintains a consistent 17% of residents considering a home purchase, reflecting a balance between affordability and market conditions.
The Economic Climate and Homebuying Decisions
Even though intentions to buy homes have remained stable, the economic landscape poses challenges. Nearly 29% of Canadians interested in buying a home cite financial uncertainty as a potential barrier to their plans.
Interestingly, a shift in borrowing conditions — aided by recent rate cuts from the Bank of Canada — has eased some concerns. The proportion of Canadians uncertain about obtaining a mortgage has decreased from 19% to 12%, indicating a growing sense of confidence in the lending market.
Waiting for the Right Moment: Interest Rates and Affordability
A significant number of prospective buyers are adopting a wait-and-see approach regarding interest rates. About 30% of individuals planning to buy in 2026 are holding off to assess market trends, a drop from 38% in the previous year. Affordability continues to be a major concern, with 52% of potential buyers stating that rising home prices could delay their decisions.
As the market evolves, keeping an eye on interest rates and property values will be crucial for anyone considering a home purchase this year.
Understanding these trends can provide valuable insights into the future of the Canadian housing market and the motivations behind homeownership across different generations.