TORONTO, March 21, 2024 /CNW/ - In today's market,
every real estate move is a calculated balance of choices and
trade-offs unique to every homebuyer. To understand how first-time
homebuyers in Canada are making
those decisions, Houseful, an RBC company, released its
First-Time Homebuyer Trade-Off Survey.
The findings reveal that first-time homebuyers in Canada under 30 years of age are successfully
buying their first home sooner than they expected by adapting to
larger trade-offs that would have traditionally been considered
'deal-breakers'. Houseful is on a mission to power confident
decisions throughout the home owning journey, and these insights
can provide a more viable blueprint for other first-time homebuyers
in a difficult market.
Younger first-time homebuyers are
making larger trade-offs and buying earlier than expected
Younger first-time homebuyers in Canada are navigating the housing market with
a pragmatic approach – by being more open with their preferences.
As a result, they're purchasing their first home sooner than they
expected. According to survey results, first-time homebuyers
recently or currently in-market under 30 are buying or planning to
buy earlier than expected (38.0 per cent) more often than those
over 30 (18.4 per cent).
Younger first-time homebuyers' quicker timeline to buy is driven
by the flexibility of their lifestyles compared to older first-time
homebuyers, which factors into their willingness to make bigger
trade-offs. Some of the trade-offs that younger first-time
homebuyers have been willing to make include:
- Smaller and smaller spaces - First-time homebuyers
under 30 are willing to embrace smaller living spaces (65.2 per
cent) compared to those over 30 (47.2 per cent).
- For now, not forever - Instead of seeking a forever
home, younger first-time homebuyers recently in-market are
prioritizing finding a home that's right for them at their current
life stage. Just over half (53.3 per cent) of those under 30 said
they have bought their dream home, versus those over 30 (72.6 per
cent).
- Expanding location preferences - For younger
first-time homebuyers, location also holds slightly less
significance. Only 28.3 per cent of those under 30 prioritize it,
compared to 34.9 per cent of those over 30. Most younger first-time
homebuyers are also open to living more than 25 kilometres away
from a large city (56.2 per cent).
"Home ownership is the beginning of generational wealth
creation," says Karen Starns, CEO of
Houseful. "Many younger first-time homebuyers recognize that
home ownership is a life-long pursuit, and an early start to the
journey can deliver exponential long-term value to support future
goals."
More purchasing power, less
compromises
While younger first-time homebuyers in Canada are buying earlier than expected,
another demographic is pursuing a different path to successful home
ownership.
Recent first-time homebuyers or those currently in-market
surveyed with a household income between $100,000 and $150,000 are willing to wait a little longer for
the home that checks all their boxes. Key findings include:
- The waiting game - Nearly 49.0 per cent of those
surveyed in this income bracket have purchased or plan to purchase
later than expected to find their perfect home, compared to 14.6
per cent for those with an income over $150,000.
- Less compromises - Living space is important to those
within the $100,000 to $150,000 income bracket, with slightly less than
half (46.5 per cent) willing to compromise compared to those making
over $150,000 (61.4 per cent) and
under $100,000 (52.2 per cent). They
were also the most selective on location — only 12.8 per cent were
willing to move more than 50 kilometres away from their desired
city, compared to 34.0 per cent with incomes over $150,000 and 27.3 per cent with incomes under
$100,000.
- Pursuit of happiness - However, first-time
homebuyers recently in-market surveyed in the $100,000 to $150,000 income bracket report the highest levels
of satisfaction with their home purchases (85.0 per cent) compared
to those with income above (60.9 per cent) and below (78.2 per
cent) this bracket range.
The Houseful survey findings show that first-time
homebuyers in Canada have a
multitude of considerations and pathways to home ownership.
Houseful is committed to helping more people realize the
benefits of home ownership, no matter who they are or where they
are in their journey.
"As homebuyers make one of the most important decisions of their
lives, they need the right support to navigate an overwhelming
market with confidence," says Starns. "By equipping first-time
homebuyers with an expert toolkit, we can help them take the first
step into home ownership."
This article is intended as general information only and is
not to be relied upon as constituting legal, financial or other
professional advice. A professional advisor should be consulted
regarding your specific situation. The information presented is
believed to be factual and up-to-date but we do not guarantee its
accuracy and it should not be regarded as a complete analysis of
the subjects discussed. All expressions of opinion reflect the
judgment of the authors as of the date of publication and are
subject to change. No endorsement of any third parties or their
advice, opinions, information, products or services is expressly
given or implied by Royal Bank of Canada or any of its affiliates.
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.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
About Houseful
Houseful, an RBC company, is a comprehensive home
ownership platform that brings real estate and finance together by
expertly connecting the dots for consumers so they don't have to go
it alone. From planning and searching to buying and thriving,
Houseful makes it so anyone can confidently navigate
trade-offs and decisions through a lifetime of home owning. Learn
more at Houseful.ca.
SOURCE RBC