Two thirds of millennials plan to make the move to home ownership, but nearly half of them have no savings

Majority of Canadians say something should be done to help millennials get into the housing market

TORONTO, May 24, 2016 /CNW/ – Two thirds (64 per cent) of millennials plan to make the move to home ownership, with 63 per cent of them looking to buy in the next five years, but nearly half (44 per cent) say they have not started to save, finds a new poll by CIBC (TSX: CM) (NYSE: CM) among young Canadians aged 18–34.

Faced with a myriad of financial challenges, 54 per cent of future millennial buyers say coming up with the required down payment is the biggest obstacle to home ownership, while approximately half are concerned that job security (53 per cent) and rising real estate prices (46 per cent) will impact their ability to buy.

“Millennials want to own, and many plan to do so in the next few years but they’re facing many obstacles and competing financial priorities,” says Barry Gollom, Vice President, Mortgages & Lending, CIBC. “It’s important that they sit down with an advisor and map out a realistic time frame for making their dreams of homeownership a reality – it’s not easy, but it’s attainable.”

As millennials struggle with budgeting for home buying, the majority (56 per cent) of Canadians are sympathetic and say something should be done to help the younger generation enter the housing market. In fact, three-quarters (77 per cent) believe that buying a home is more difficult for young Canadians today than it was for previous generations, another poll from CIBC finds.

“It’s not just young Canadians that feel that buying and maintaining a home is a challenge for their generation,” adds Mr. Gollom. “Canadians across the board regardless of age agree and a majority are calling out that something should be done to help.”

Key poll findings include:

• 16 per cent of Canadians aged 18-34 have already bought a home

• 64 per cent of Canadians aged 18–34 say that their future plans include buying a home. Among them:
  • 63 per cent plan to do so within the next five years, and
  • 44 per cent have not started to save yet for their down payment.

• 54 per cent of millennials planning to buy a home say that saving enough for the required down payment is the biggest obstacle to home ownership. Other roadblocks include:
  • Job security and earning enough to afford mortgage payments (53 per cent). This is the biggest concern for millennials in Ontario (60 per cent)
  • Rising real estate prices (46 per cent). This is the key deterrent for millennials in British Columbia (72 per cent)
  • Managing competing financial priorities, such as paying down debt (45 per cent)

• 56 per cent of Canadians say something should be done to help young Canadians get into the housing market, including:
  • 68 per cent of Canadians aged 18-34,
  • 52 per cent of Canadians aged 35-54, and
  • 51 per cent of Canadians aged 55+.

• 77 per cent of Canadians say buying a home today is more difficult for young Canadians than it was for previous generations

Key poll findings of millennials 18-34

Percentage of millennials who are planning to buy a home in the future:

Time frame of those millennials who plan to buy a home:

Progress of saving for a down payment among millennials planning to buy a home:

Major obstacles to home ownership for millennials planning to buy a home (multi choice):

Key poll findings of Canadians

Canadians on whether buying a home is more difficult today than for previous generations:

Canadians on whether something should be done to help young Canadians enter the housing market:

Canadian Millennials 18-34 Poll Disclaimer
From April 15^th to 20^th, 2016, an online survey was conducted among 864 Angus Reid Forum panelists who are Canadians between 18-34 years old. The margin of error – which measures sampling variability – is +/- 3.3 per cent, 19 times out of 20. The results have been statistically weighted according to gender and region (and in Quebec language). Discrepancies in or between totals are due to rounding.

Canadian Adults Poll Disclaimer
From April 19^th to 20^th, 2016, an online survey was conducted among 1,500 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error – which measures sampling variability – is +/- 2.5 per cent, 19 times out of 20. The results have been statistically weighted according to age, gender and region (and in Quebec language) Census data to ensure a sample representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.

About CIBC
CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients. Through our three major business units – Retail and Business Banking, Wealth Management and Capital Markets – CIBC offers a full range of products and services through its comprehensive electronic banking network, banking centres and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.       

SOURCE Canadian Imperial Bank of Commerce