Canadians expect to be 41 when they buy their first home

The average Canadian only expects to buy their first home at the age of 41, 12 years older than when current homeowners bought theirs, a poll by the Royal Bank of Canada on home ownership says.

For about half of non-homeowners, they simply don’t know when they will buy.

“Many first-time buyers expect to buy more than a decade later than current homeowners,” RBC’s report said.

The survey found that most Canadians feel that buying a home today looks very different than it did for previous generations, with 74 per cent of respondents believing it is more complicated than it used to be.

They’re also more wary of what previous generations tell them about buying a home. The poll said 65 per cent feel past generations don’t understand the challenges of buying now, and 52 per cent feel that home buying advice from previous generations is no longer true.

Meanwhile, many Canadians looking to buy a home are considering multi-generational living.

The survey said 53 per cent of those planning to purchase their first or next home within the next two years would consider a multi-generational home. Among current owners, 35 per cent say they would sell their current home and buy one with their child to help them get into the market.

Multi-generational living is becoming more common for some. Almost 35 per cent of prospective buyers cite housing affordability for considering this, and 32 per cent believe it’s a smart way for families to manage housing costs. For 26 per cent of prospective buyers, multigenerational living is more out of necessity than choice.

“Canadians are finding new ways to make one of life’s biggest purchases possible,” said Janet Boyle, senior vice-president of home equity finance at RBC.

Boyle said many families pool funds to buy a home sooner and share the costs.

The report also found that deciding when to enter the market comes with competing concerns about where home prices could go next.

Half of prospective buyers worry waiting could price them out of a home, while half worry about buying and prices falling further, while another half worry about buying now only to see prices fall.

Mortgage renewals is also another financial pressure Canadians face. For current homeowners renewing within the next two years, 51 per cent say it feels almost as stressful as buying their first home.

The poll said 82 per cent are concerned about interest rate increases in the coming year, 60 per cent expect their next renewal to strain their household finances, and 42 per cent wish they had started planning for their renewal earlier.

“Canadians are trying to make one of life’s biggest decisions in a complex market, and that’s genuinely difficult,” said Boyle.

RBC’s homeownership poll was conducted with an online survey of 1,810 Canadians aged 18 to 64 between Aug. 5 and 24 using Leger’s online panel.