In an economy that’s seen skyrocketing real estate prices, an unpredictable job landscape and an unemployment rate of 13.2 per cent for young adults aged 15-24, a recently released study (http://www.hsbc.com/news-and-insight/media-resources/media-releases/2017/generation-buy ) has revealed that almost 25 percent of surveyed millennials would consider delaying having children or starting a family to focus on saving for a first home.
The report, released by HSBC and titled Beyond the Bricks, aims to shed light on the home ownership goals for millennials around the world. It found, among other things, that 82 percent of Canadian millennials would like to purchase a home within the next five years, but face a variety of challenges. For example:
- 69 percent of surveyed millennials find it difficult to put sufficient money into savings for a down payment.
- 34 percent say they feel held back because they can’t afford the type of property they would like.
- 64 percent say they would require a higher salary to achieve their goal of home ownership.
- 36 percent of millennials around the world do, in fact, own their own homes but required financial help from their parents to make the purchase.
Contrary to some people’s beliefs about the lavish lifestyle and financial irresponsibility of many young professionals today, the HSBC report also found that many millennials are willing to make significant sacrifices to afford a home. Some of these findings include:
- 55 percent of surveyed millennials would be happy to spend less on entertainment and leisure.
- 33 percent would consider buying a smaller than ideal home.
- 21 percent would delay having children.
In a different landscape than some generations past have experienced, the linear goals of finishing formal education, finding stable employment, getting married and purchasing a home are undergoing an overhaul. The homeownership dream, according to HSBC’s Global Head of Retail Banking, Louisa Cheang, is certainly not dead for today’s millennials, but “looks to be deferred.”