More adult children sharing home with mom and dad
Gordon Clark
Province
Canadian parents looking forward to their empty-nest years may have to rethink their plans, says the Bank of Montreal
A survey of 1,205 potential first-time buyers in major cities across the country reveals that 29 per cent of Canadians aged 21 to 34 are living with their parents while saving up for a down payment. For Vancouver, the figure was 28 per cent, behind Winnipeg at 43 per cent and Toronto at 40 per cent.
“A red-hot real-estate market and rising home prices have likely contributed to this trend,” BMO vice-president Cid Palacio said.
Among the young adults aged 21 to 34 who lived with their parents, Toronto, at 22 per cent, had the largest percentage who were older than 30, followed by 17 per cent in Calgary and Halifax.
Only 10 per cent of Vancouverites aged 21 to 34 who lived with their parents were over age 30, according to the survey conducted by Decima Research from March 1 to March 9.
Palacio said the survey “found a considerable gap between potential first-time buyers’ expectations and their realities when it came to planning and saving to buy a home.”
“We found that, although most young Canadians would like to purchase a home within the next few years, most do not have a practical plan to get there,” he said.
According to the survey, Canadians between 21 and 34 have, on average, saved for a down payment for 1.6 years, yet expect to take only 3.8 years “to save enough to commit to a purchase.” Other findings include:
– 30 per cent of all those planning to buy a home intend to use the First Time Home Buyers RRSP Plan.
– 60 per cent intend to rely primarily on savings or investments to make the purchase.
© The Vancouver Province 2007
