Canadians are entering the real estate market at a surprising age

Buying a home has long been seen as a major milestone for Canadians, but getting the keys is taking longer. According to RBC’s latest Home Ownership Poll, Canadians expect to buy their first home at an average age of 41. That is more than a decade later than today’s homeowners, who bought their first properties at 29. For many, the traditional idea of buying a first home in their 20s or 30s is becoming less realistic.

The delay is not about pricey avocado toast and lattes. Nearly three-quarters (74 per cent) of Canadians surveyed say buying a home is much harder today than it was for previous generations, who had to save less for a down payment. With purchases taking longer and costing more, the prospect of buying a starter home and upgrading a few years later is less appealing.

RBC says Canadians would rather buy one home for the long haul. Nearly three-quarters (74 per cent) of those planning to buy their first home within the next two years would prefer a place they can essentially grow old in, rather than starting with a smaller home and upgrading later. Among current homeowners, 51 per cent say moving to a bigger or better home has been harder than expected. Another 46 per cent would like a larger home but say it is not financially realistic right now.

For some Canadians, entering the housing market may mean buying with family. RBC’s poll found that 53 per cent of potential buyers would consider a multigenerational home shared with parents, children or other family members. Many of those potential buyers are in B.C. Pooling resources with three or more people can help buyers enter the market sooner. The idea also appeals to some current homeowners: 35 per cent say they would be willing to sell their existing home and buy a new one with their children to help them get into the market.

Buying a dream home does not necessarily end financial worries; sometimes they are just beginning. Among homeowners renewing their mortgage within the next two years, 51 per cent say the experience feels almost as stressful as their first home purchase. A further 82 per cent are concerned about interest rates rising over the coming year.

Canadians may be older by the time they finally get on the property ladder, but that does not mean they are in over their heads. Buying a home now may be less about reaching that milestone by a certain age and more about making sure the numbers add up.