Although the road to home ownership can be fraught with challenges, particularly for the younger generations, the desire to have a living space of one’s own continues to resonate for many young Quebecers.
Quebec’s next generation of homebuyers,1 comprising Generation Z and young millennials, are taking a positive approach to home ownership, as revealed by the recent Royal LePage® 2024 Demographic Survey, conducted by Hill & Knowlton.2 Although 81% of young people in Quebec consider home ownership to be a good investment, this figure is slightly below the national average of 84%. However, a higher proportion of Quebecers in this demographic (64%) believe that home ownership is an achievable goal in their lifetime, compared to the rest of the country (54%).
This difference between Quebecers and their Canadian counterparts is accompanied by a unique perspective – in Quebec, 80% of young people, for whom home ownership is a priority and who aspire to become homeowners, say that the goal of home ownership is important to them because they want a permanent place to call their own. This is higher than the national average of 73%. Unlike the majority of young Canadians, who have a greater tendency to associate home ownership with stability (57% in Canada, versus only 38% in Quebec), Quebec respondents place a higher value on owning their living space.
The survey reveals that young Quebecers who do not currently own their primary residence are less inclined to see home ownership as a priority (71%) compared to Canadian respondents.
While housing affordability is a key factor in achieving homeownership for the next generation of buyers, it is not the only consideration. Quebec remains one of the most affordable real estate markets in Canada, with 64% of the younger generations in the province believing that home ownership is an achievable goal in their lifetime, compared to 54% across Canada. Yet, young Quebecers are the least likely in Canada to express an intention to buy a home as their primary residence (64% vs. 75% nationally).
According to Diana Campbell, residential and commercial real estate broker with Royal LePage Village in Montreal, Quebec’s youngest generations of buyers value home ownership as a solid investment, albeit at a lower degree than their Canadian counterparts and differently than past generations, like the baby boomers.
”With a focus on lifestyle flexibility – embracing travel and life experiences – they see home ownership as one of several ways to secure their financial future, rather than the sole focus. This generation understands the importance of balancing long-term goals with living in the moment. On the other hand, they are more optimistic about achieving home ownership one day, which does not come as a surprise given Quebec’s real estate market’s greater affordability,” she said.
Quebec’s next generation of homebuyers take a different approach to home ownership when it comes to their retirement planning. Among respondents who consider home ownership a priority, 27% of the Quebec cohort see this step as a priority in their retirement plan, versus 32% nationally.
“This generation is focused on flexibility and living in the moment, rather than long-term commitments like property acquisition,” said Campbell. “However, they’re financially savvy and recognize that, as their circumstances evolve, real estate could become a valuable component of a broader investment strategy down the line.”
On a national scale, the Next Generation survey reveals that family financial support is somewhat limited for young buyers. Only 32% of Canadian respondents expect family support to buy a property.
Campbell points out that, although rather rare, financial help for a home purchase often takes the form of living gifts, with parents helping their adult children acquire real estate earlier in life so that they can increase their assets and secure their future.
“Parents who want to help their children enter the housing market should start planning early. Whether it’s contributing to a down payment or providing financial guidance, their support can make a significant difference. However, it’s crucial to ensure that any assistance offered is part of a well-thought-out strategy,” she explains.
Planning remains the key to getting your foot in the door of home ownership, according to Campbell.
“For those looking to enter the housing market, my advice is to start by solidifying your financial foundation,” she said. “Work on building a strong credit score, save diligently for your down payment, and explore all available home ownership programs. In Quebec, where affordability is still within reach for many, it’s crucial to stay grounded in your budget. Avoid the temptation to look beyond what you can comfortably afford, and instead focus on finding a home that meets your needs today and in the medium term. Remember, your first home is a stepping stone, not the....[READ MORE]
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