Doorbells before wedding bells: New generation of homebuyers unlocking financial success

TORONTO, August 21, 2024 – Despite a challenging housing market and recurring headlines around housing affordability, first-time homebuyers in Canada under 30 are undeterred. Instead, they are doubling down on home ownership as a financial priority over common life milestones such as weddings.

A new survey from Houseful reveals a trend of first-time homebuyers under 30 keeping home ownership top-of mind as they assess their priorities. According to the survey results, 78 per cent of single and unmarried first-time homebuyers under 30 are prioritizing saving for a mortgage over having a more lavish wedding, compared to 70 per cent of those over 30. 

While their priorities are focused on home ownership, they’re aware of difficulties in the current market – 72 per cent of those under 30 state that reports about the market make housing look unattainable. Yet even with rising housing costs, they’re putting home ownership first to build equity over a longer period and prepare for their future. 71 per cent believe home ownership will be an important part of their retirement plan.

“Younger adults are increasingly conscious of ongoing housing affordability challenges, which motivates them to secure a financially stable future by seizing saving opportunities earlier,” said Karen Starns, CEO of Houseful. “After getting a foothold in the market, they can gain the flexibility to pursue other life milestones that are important to them.”

With a new generation of first-time homebuyers entering the market, Houseful offers access to personalized tools, market insights and mortgage experts to support this segment through the homebuying process from start to finish, so they can find a home that’s the right fit for them.

Fiscally responsible today, financially stable tomorrow

For first-time homebuyers under 30, home ownership is a critical part of their five-year plan (40 per cent), outranking marriage (24 per cent), travel (30 per cent), and buying a car (33 per cent). 

As they think about setting themselves up for financial success, first-time homebuyers under 30 are proving they can be financially savvy:

• Saving with purpose – 72 per cent are allocating at least some percentage of their monthly income toward their first home, and nearly a quarter (24 per cent) are putting away more than 15 per cent of their income. Only 47 per cent of first-time homebuyers over 30 are allocating a percentage of their income toward purchasing a home.
• Tightening the belt – The majority are actively reducing day-to-day purchases such as eating out and shopping (74 per cent), as a means of enabling them to make a larger life purchase such as a home, compared to 61 per cent of those over 30.

“Each person’s path to financial stability is unique to their own experiences and life journey,” said Starns. “However, it’s promising to see the common trend among this segment of first-time homebuyers under 30 as they make tangible efforts for long-term financial planning at early stages of their adult lives.” 

Seeking advice and a plan to make smart choices

While first-time homebuyers under 30 in Canada are off to a strong start on their path to home ownership, they are still seeking guidance to understand the multitude of factors that go into making optimal real estate decisions.

Nearly three-quarters (74 per cent) believe buying a home will be the most important financial decision they’ll make in their life compared to 54 per cent of those over 30, but less than half (47 per cent) feel confident that they understand all the costs associated with buying and owning a home. 

While concerns around housing affordability persist, first-time homebuyers under 30 are determined to make home ownership a financial priority. They may need a well-informed plan to make it happen, and the right support to navigate a challenging market with confidence.

“Saving for home ownership is only one piece of the puzzle,” said Starns. “Part of our goal at Houseful is to equip first-time homebuyers with a wealth of relevant resources and tools to power confident real estate planning and decisions – both before and after they get the keys to their home.”

About the survey:

The survey, conducted by RBCx and distributed by Cint between June 27, 2024, to July 3, 2024, captures the responses of 1,026 participants based in Canada over the age of 18. No margin of error can be associated with a non-probability survey, but for comparative purposes, a probability sample of this size would have a margin of error of +/- 3 percent with a 95 percent confidence level.

About Houseful

Houseful is a comprehensive Canadian real estate technology platform on a mission to power confident decisions throughout the home owning journey. Acquired by Royal Bank of Canada in 2023, Houseful makes home ownership achievable for more people through a combination of personalized tools, market insights and access to real estate and mortgage experts at every stage of the journey. For more information, visit Houseful.ca. 

About RBC

Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 94,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

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