What should be the largest cohort of homebuyers in the British Columbia housing market are finding finances really tough.
That’s according to a report from Insights West and Coast Capital Savings which reveals that 52% of British Columbians aged 18-29 are struggling financially and not saving enough for the future. Almost a quarter are living pay cheque to pay cheque.
Things aren’t much better for those in their 30s with 41% saying they are constrained financially.
“Never mind home ownership,” points out Tracey Arnish, Chief Member and Employee Experience Officer. “Even renting in the Lower Mainland is a stretch for a lot of young people. Once you take housing costs off the top, there isn’t a lot left over for other obligations.”
They are saving but not enough
Just 22% of 18-29-year olds are saving and only 18% say they are ‘living well and saving well’. A third of those in their 30s are saving.
On homeownership, 89% of 18-29s say that it’s virtually impossible to buy today and 60% are planning to move to lower cost areas to afford a home.
Among those over 30, a third are thinking of moving to a more affordable housing market.
“Home ownership might not seem like a plausible financial goal for a lot of young people in today’s market,” explains Arnish. “That doesn’t mean that it isn’t possible. If it is something that you’re striving for, you can absolutely make it happen. It is going to take some savvy financial planning, but it is within reach.”