More than half of Canadian millennials are tired of paying rent, but 70 per cent would rather hold out for a home they really want before jumping into the real estate market, according to a new poll released by the Bank of Montreal on Tuesday.
The Pollara survey conducted for BMO revealed almost all millennials, those between the ages 19 and 35, agree there is value in home ownership. But the majority doesn’t feel pressured to buy a home anytime soon and sees it as an investment rather than a goal or milestone.
With only a quarter of those surveyed planning to buy a home in the next year, the rest are prioritizing other goals like travel, starting a business or going back to school.
“Prospective home buyers should certainly not enter the market until it is personally right for them, but as they sit on the sidelines, they need to be mindful that the market is not waiting for them,” Damon Knights, Director of Home Financing for BMO, said in a release.
Even though millennials are taking a cautious approach to home ownership, more than two thirds said they are tucking money away for an eventual down payment.
But as Canadian home prices continue to soar, saving for a first home may take longer than it did for previous generations.
Millennials are expecting to pay more than $350,000 for their first home on average nationally. That number rises to more than $465,000 in Toronto and $525,000 in Vancouver.
Why millennials are holding off on home ownership:
| Reason | Percentage |
| Travel, going back to school, starting a business | 42% |
| Worried about not having disposable income | 38% |
| Unsure about where they want to settle down. More concerned about paying off debt | 31% |
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