Homeownership is seen as the pinnacle of stability for many Canadians; a proverbial signpost that says, “I’ve made it.” But in an era of rising prices, stagnating wages, rapidly shifting interest rates, and an insufficient housing supply, this once-standard milestone that’s been a reality for generations is looking more and more like a fantasy to many.
While industry experts forecast a possible market rebound as early as this spring, there’s an increasing sentiment among young Canadians that homeownership feels increasingly out of reach. On the verge of Canada’s first new Prime Minister in nearly a decade, Easy Home Renovations asked Millennials (ages 29-44) and Gen Z (ages (18-28) how they feel about the current state of Canada’s rocky real estate landscape.
- Widespread Uncertainty: In Ontario and British Columbia, fewer than 15% of non-homeowners aged 18 to 44 believe they will ever own a home.
- Some Optimism Exists: Certain parts of the country are more hopeful. Quebec (39%), as well as Newfoundland and Labrador (37%), show higher optimism rates, hinting that some regions may still offer pockets of affordability.
- Generational Divide: While 63% of Millennials (29 to 44) “strongly agree” that owning a home is a primary life goal, only 52% of Gen Z (18 to 28) feel the same way. Gen Z, however, is far more pessimistic overall, with 62% saying homeownership isn’t achievable.
- Delayed Family Plans: A notable slice of young Canadians (27%) say the housing crunch has put their family-starting timelines on hold, demonstrating that insecurity around housing is substantially influencing major life decisions.
- Blame Game: Across both generations, lack of government action on housing supply tops the list of reasons why homeownership seems out of reach. Millennials also point to insufficient income, while Gen Z is uniquely concerned about immigration policy compounding housing demand.
To truly understand why younger Canadians feel homeownership has veered into pipe-dream territory, it helps to note the broader national context. Last year’s housing data shows that, despite a modest uptick in housing starts and a wave of new apartments coming online in certain provinces, supply simply isn’t meeting demand, especially in big urban centres like Toronto, Vancouver, and Montreal. Rents remain high, mortgage rates are still well above pre-pandemic lows, and population growth continues to skyrocket.
Couple that with the fact that many new builds in major metros are condos, rather than single-family homes, and it’s no wonder we’re seeing the disillusionment among these generations. Younger Canadians, in particular, face the challenge of juggling stagnant (or slowly rising) wages against mounting monthly costs for even basic needs like groceries and utilities. Leaving millions to wonder how they’re supposed to get a down payment together when everyday life already stretches our wallets to the brink.
A Glimpse at Provincial Discrepancies
- Ontario (12% optimism): This is perhaps unsurprising given Toronto’s sky-high real estate prices, which soared even higher during the pandemic and are yet to come back to earth. Even with the recent market cooldown, a detached home in the GTA remains out of reach for all but the most well-off first-time buyers, pushing optimism down to the nation’s lowest.
- British Columbia (14% optimism): Metro Vancouver’s notoriously inflated home costs appear to keep young Canadians on the fence, or off it entirely. With only 6% of non-homeowners in Vancouver believing they can eventually buy, the sentiment is even bleaker than the province-wide rate.
- Quebec (39% optimism): Montreal might have seen its own price hikes, but relative to Toronto or Vancouver, it remains comparatively affordable. This is reflected in the higher optimism among Quebec’s 18 to 44 demographic.
- Newfoundland and Labrador (37% optimism): Lower average housing costs, coupled with a less pressured market, translate into more confidence in eventually making the leap to homeownership.
- Prairie Provinces: Alberta (31%) and Saskatchewan (35%) offer a middle ground: improving job markets in certain cities, slightly more stable prices and fewer upward pressures keep optimism from completely collapsing.
The Most (and Least) Hopeful Cities
It’s not just at the provincial level where we see striking differences. Certain urban centres stand out:
Most Optimistic:
- Regina (46%)
- St. John (43%)
- Edmonton (39%)
- Winnipeg (37%)
In these cities, housing costs, while still high for some, are markedly more manageable compared to the country’s biggest cities. Employment prospects in these metros have also been relatively stable, with some new sectors growing and attracting young talent.
Least Optimistic:
- Vancouver (6%)
- Toronto (8%)
- Victoria (10%)
- Hamilton (13%)
- Ottawa (14%)
Looking at Vancouver or Toronto specifically, both have been in the spotlight with skyrocketing prices and limited inventory for years. Even with a slight uptick in new homes or condos, the tangible affordability hasn’t improved meaningfully for many, leaving optimism levels in these markets at Canada’s lowest.
Millennials vs. Gen Z: Where realities diverge
Both Millennials aged 29 to 44 and Gen Z aged 18 to 28 largely express discontentment with Canada’s housing market, but clear generational contrasts remain. In terms of the importance of homeownership, 63 percent of Millennials strongly agree that it’s a primary goal, whereas 52 percent of Gen Z respondents share that view. One possible explanation is that Millennials came of age when buying property still seemed relatively attainable, so they still see it as a natural progression in one’s life. On the other hand, Gen Z entered adulthood in an era marked by record housing inflation and global economic uncertainty, which has likely altered their perception.
These generational differences become even more pronounced when discussing whether owning a home is truly a reality. Just 31 percent of Millennials believe homeownership is definitely achievable, and 22 percent think it is somewhat achievable, indicating that more than half still have some confidence in eventually becoming homeowners. Meanwhile, only 11 percent of Gen Z respondents say it is definitely achievable, and 15 percent believe it is somewhat achievable. A substantial 62 percent of Gen Z state that owning a home is not achievable at all, suggesting that most feel destined to rent, live with family, or pursue other housing arrangements for the foreseeable future.
This financial uncertainty also influences major life personal decisions, such as starting a family. Roughly 27 percent of Millennials and 25 percent of Gen Z report that the housing crisis has made them reconsider or delay having children.
Who Gets the Blame?
Skepticism and frustration are high, so it’s no surprise that when asked, both Millennials and Gen Z pointed to systemic issues over personal ones:
- Lack of Government Action on Housing Supply: 33% of Millennials and 36% of Gen Z rank this as their top concern. Many respondents believe policymakers have been slow to address the need for more housing, particularly more affordable housing.
- Income Constraints: 32% of Millennials say insufficient income is the main factor preventing them from owning a home. They argue that salaries haven’t kept pace with the market’s meteoric rise.
- Immigration Policy: About 1 in 10 (11%) of Gen Z feel that high levels of immigration is driving up competition for the limited housing stock. This viewpoint is similarly common among Millennials (13%).
- Interest Rates: Despite heavy media coverage, only 17% of Millennials and 16% of Gen Z cite rates as the primary impediment. Perhaps historically low rates in the past have made these newer, though still relatively modest, rates seem less threatening than the underlying shortage of supply and wage stagnation.
Though some do mention personal shortcomings (like not saving enough or poor financial planning), these account for only a tiny sliver of the overall blame. This widespread finger-pointing toward national policy and economic realities indicates that younger Canadians overwhelmingly view housing affordability less as an individual failing and more as a systemic issue.
Political Winds: A Potential Conservative Upswing?
One question that never fails to pique interest: Will a change in leadership help?
- Millennials: 42% say a Conservative prime minister might improve the housing market, 35% say no, and 23% are unsure.
- Gen Z: 30% believe a Conservative government could help, while 49% say no, and 21% aren’t sure.
Whether it’s cynicism or realism, Gen Z appears less convinced that any government, even with a new political leaning, will fundamentally fix housing. Millennials are slightly more hopeful, though respondents seem to believe it will take more than changing the stripes of the party in power to restore a sense of affordability and opportunity.
Context from the Broader Housing Market
Recent data from the Canadian Real Estate Association and other bodies show that while sales volumes took a modest dip in December, they remained significantly higher than mid-year levels, before the Bank of Canada started cutting interest rates. Economists generally anticipate a bounce-back in the 2025 spring market, citing pent-up demand, population growth, and gradually falling mortgage rates as catalysts.
Considering the outlook against the attitudes of younger Canadians, you’re left with a contrasting picture: a market that may gradually regain some momentum, but a generation of renters and prospective buyers still feeling sidelined by structural barriers. Even with a potential surge in listings, especially if sellers decide to capitalize on rebounding prices, many of those in the 18 to 44 age bracket might find themselves competing against well-funded investors or move-up buyers with significant equity from an existing home.
Methodology
In January 2025, we surveyed 1,000 Canadian residents between the ages of 18 and 28 representing Generation Z, along with 1,000 Canadian residents between the ages of 29 and 44 representing the Millennial generation. Our respondents were 47% male, 49% female, and 4% reported other gender identities.
All respondents were residents of one of Canada’s provinces. There was an insufficient number of respondents from the territories to produce reliable data.
