According to a new report by Manulife, 3 in 4 Canadians surveyed who want a house, can’t afford one.
The poll surveyed 2,001 Canadians in all provinces between ages 20 and 69 with household income of more than $40,000. The survey was conducted online by Ipsos between April 30 and May 4, 2021.
“With the housing market pricing many Canadians out of the market, younger generations are forced to turn to their parents to close the gap,” said Manulife Bank CEO Rick Lunny. “Although this can be an effective short-term solution, it can actually be exacerbating the problem. That’s why it’s so important to have financial flexibility, especially when it comes to purchasing a home, no matter the financial environment.”
This news is on track with the discussion surrounding the housing crisis in Canada. In addition, the report noted that seven out of 10 Canadians (71%) who do not own a home worry about saving up for one, including as many as four in ten (39%) who worry a lot about this.
During the COVID-19 pandemic, nearly one in ten (7%) parents have helped their adult children purchase a home during the pandemic.
“Our survey findings show 72 per cent of Canadians admit they do not have a written financial plan and just one-third (35 per cent) of those who are in debt have established a strategy to repay their debts,” said Lunny. “Identifying where your money goes, finding ways to save more, and minimizing your current spending can help you feel more in control of your money matters to achieve larger goals like home ownership.”