For many generations, buying a home has been a relatively affordable way to live, with room in the budget to save for the future and have a substantial asset too.
But affordability challenges mean that many Canadian millennials are missing out on ownership, denying them that valuable asset. And those that do buy, are stretching their household budgets, limiting their ability for saving.
A newly-released report from KPMG shows that just 54% of millennials surveyed believe they will ever afford to buy their own home, a real worry for the 78% who believe homeownership is an investment for financial stability in retirement.
For 65% there is the concern that, if they do buy a home, that will mean they cannot save enough for their retirement; 42% of existing homeowners are putting off retirement savings to hold down their mortgage.
"While Canadians generally believe home ownership is essential for a financially stable retirement, most millennials feel times have changed and they can't rely on their home to be a viable nest egg like their parents have," says KPMG's Martin Joyce, Partner, National Leader, Human & Social Services.
He added that today’s millennials are facing a choice that previous generations did not.
"They either buy a home or focus on saving for retirement. Buying a home involves taking on considerable debt because house prices are so high in relation to incomes, and that limits millennials' ability to save. While most feel home ownership is an investment for financial stability, they worry their home will be worth less in the future."