Despite ongoing chatter about a “cooling market,” housing prices in Canada still haven’t fallen enough for younger buyers to enter the game. In fact, fewer people of any age seem to be buying. According to data from WOWA, housing transactions are down 7.5% compared to this time last year. Yet, listings are up—by a whopping 47%.So, what's going on? One consideration is that Gen Z simply isn’t ready or able to afford homes. While Canadian data is sparse, trends from the U.S. and U.K. suggest the average age of first-time homebuyers is rising steadily. And that rise is part of a larger societal shift.Younger generations are aging socially at a slower pace. The psychological theory often referred to as “failure to launch” describes how Gen Z and millennials are hitting traditional milestones like leaving home, entering full-time work, or buying property much later than previous generations.This isn’t necessarily a reflection of personal failure. There are multiple, interwoven factors at play:<ul style="list-style-type:disc;"><li style="text-align:justify;">High cost of living</li><li style="text-align:justify;">Prolonged higher education</li><li style="text-align:justify;">Growing awareness of mental health needs</li><li style="text-align:justify;">Shifts in parenting styles</li><li style="text-align:justify;">Cultural norms around multigenerational households</li><li style="text-align:justify;">Economic volatility and unstable job markets</li></ul>In short: life is more complicated and expensive than it used to be. And while it may be tempting to judge, these broader social and economic conditions shape market behavior in very real ways.Our contributor surveyed about 1,000 peers, primarily Gen Zers from various walks of life, many of whom are in law school, graduate programs, or early in their careers. Others are already working, some with college diplomas or bachelor’s degrees, while others are pursuing postgraduate education. Many come from immigrant backgrounds where living at home until marriage or financial stability is culturally normal.When asked what they were waiting for before buying a home, respondents could select from:<ul style="list-style-type:disc;"><li style="text-align:justify;">Job security</li><li style="text-align:justify;">Price drops</li><li style="text-align:justify;">Interest rate cuts</li><li style="text-align:justify;">Tax incentives</li><li style="text-align:justify;">Other</li><li style="text-align:justify;">“I’m not waiting”</li></ul>Here’s what we learned:<ul style="list-style-type:disc;"><li style="text-align:justify;">52% said they were waiting for housing prices to drop</li><li style="text-align:justify;">45% were waiting for job stability</li></ul>A small portion selected all of the aboveMany expressed the need to first secure their professional path and geographic future before making such a large investment. One respondent noted they no longer believe homeownership is worthwhile, preferring the convenience of renting and not having to handle maintenance. Another respondent, more fatalistic, said they don’t think they’ll ever earn enough and therefore won’t even try.When asked if they were waiting for government-sponsored or “wartime-style” housing solutions, none of the respondents said yes. Some were skeptical that such programs could succeed, while others didn’t want to live in the type of housing currently being proposed.Younger generations are often criticized for moving through life "too slowly" or not being as hardworking as their predecessors. But context matters. Economic pressures, social changes, and evolving values all shape how and when young people make major life decisions.Buying a home isn't just about financial ability. It's about life readiness. And right now, for many in Gen Z, that means waiting.

What Are You Waiting For? Young People and Housing

Why are young Canadians not buying homes? A survey reveals what Gen Z is really waiting for.

About RIFO

Business

Investors

News

Contact Us

Contact Us