According to a recent study by Houseful, homeownership is still on the minds of young Canadians despite the market’s increasing challenges over the past two decades.
In fact, first-time homebuyers under 30 in Canada are doubling down on homeownership as a financial priority over common life milestones — with 40% prioritizing saving for a mortgage over marriage (24%), travel (30%), and buying a car (33%).
But there’s one question that many young Canadians ask themselves when it comes to homeownership: how do I even get started?
Luckily, there’s Houseful, a dedicated resource that works to make Canadian homeownership more accessible. Whether you’re just getting started or building towards buying your next home, Houseful meets you where you are to connect you with agents and resources that can support you on your journey — in whatever form that may take.
We had the opportunity to sit down with Karen Starns, CEO of Houseful, to talk about the homeownership challenges facing young Canadians, and what steps they can take to prepare for entering the market.
Overcoming the challenges
While Starns points to price being a major factor in the homeownership challenge, she says it’s less about the price tag of a home, but rather about the trade-offs associated with owning a home.
“One of the things Houseful is really good at and that we’ll continue to invest in is helping people navigate the calculated balance of choices and trade-offs in real estate — how do we inform consumers about the possibilities that trade-offs can offer, as it applies to them?” says Starns. “Everyone has an individual journey and different trade-offs they’re willing to make.”
Another major challenge is the overarching negative sentiment around the possibility of homeownership, with 72% of first-time homebuyers under 30 in Canada feeling that it’s unachievable. But while the futility of the situation may make for an interesting headline, they’re not letting the negativity affect them.
“Young Canadians look at this milestone over other life milestones and know that it’s not going to be easy but still put it high on their priority list.”
What young Canadians might be missing
Overcoming financial challenges, especially in a tougher Canadian market, is definitely a struggle, but Starns stresses that the cost of homeownership isn’t as simple as securing the finances.
It isn’t just about the down payment, finding financing for the home, and then paying the mortgage. The cost of homeownership also includes maintenance costs, taxes, and a host of other factors.
Again, this is where Houseful can help. With resources like the homebuyer guide and a network of industry experts, the platform can connect you with the support and knowledge you need so you can make tangible moves towards owning your next home.
“Houseful helps equip young Canadians on the other side rather than just giving them the keys to the front door and thinking the job is done, because it’s a lifelong proposition … And it’s incumbent upon us to understand it, so they can achieve their objective of starting that process of wealth building.”
Success stories with Houseful
While speaking with Starns, she recalls a young couple who recently used Houseful to secure their first one-bedroom apartment.
“They moved to Vancouver three years ago, and wanted a home in the city as a great investment. Property costs are high in Vancouver, but they set themselves up to start managing their spending well ahead of finding a property that was a good fit for them.”
The couple moved into a basement apartment that was under their budget to tackle the challenge of saving while renting. Once they were ready, the couple started using Houseful to understand what they really wanted out of their first home.
“There are so many factors that you need to decide upon before investing in a home. Do you want something that’s walkable, do you want to be near the train, or maximize square footage? They started using Houseful and were able to really explore all of their different options.”
Houseful helped them connect with a real estate agent who was able to set them up with their current house, which fits with their lifestyle and kicked off their homeownership journey.
“Our role is to be in your corner — we offer education and information at every stage of the journey, along with bringing experts to the table.”
Effective strategies for homeownership beyond the ‘What if’
There are lots of strategies young Canadians can employ if they’re going to start looking into homeownership, but Starns says that understanding your budget is one of the biggest game-changers. You really have to understand where you’re spending so you can see where to cut back to accelerate your goals.
Houseful data also reflects this, with their survey highlighting that 74% of first-time homebuyers in Canada under 30 are reducing daily expenses such as dining out and shopping to save for a home.
“The budgeting may not be the most fun piece, but as your nest egg continues to grow and you can see the home purchase on the horizon, that’s pretty satisfying, and all within your control.”
Another idea Starns stresses is for young Canadians to ditch the idea of a “dream” or “forever” home.
It’s not about lowering your expectations, but changing your perspective of what you want in the short- to medium-term, which helps you take advantage of the market’s potential without getting anchored to something you can’t afford.
There’s a huge strategic benefit to this — because, once you’re ready to go after that “dream” home, you’ll be in a better position through the equity you’ve built and the experience you’ve already gained being in the housing market.
“It’s really fun to look at beautiful homes on the market. I do it all the time, and it’s super enjoyable to look and ask ‘what if.’ But our job, through education, experts, and the tools we offer, is to help drive a level of ability and realism so people can get to their goals faster.”
So don’t wait to educate yourself on how you can work towards harnessing the market’s potential. You can check out Houseful today to get started.