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GENWORTH CANADA 2019 HOMEOWNERSHIP STUDY
A SNAPSHOT OF CANADIAN FIRST-TIME HOMEBUYERS (FTBs) AND WHAT’S MOTIVATING THEM.
© 2019 Genworth MI Canada Inc.
WHO IS BUYING?
WHAT’S MOTIVATING THEM TO BUY?
Homeownership growth among 25-40 yr-olds declines as aging Millennials top out
FTBs have much stronger Financial Fitness than the national average, and the gap is widening
Top motivations for buying include financial decisions and wanting to be in control of their home
Top home shopping criteria include price, safety of the neighbourhood and the size/space of the home
Changing demographics will define the first-time homebuyer market.
Immigrants now represent a quarter of first-time buyers overall, and more than 40% in Toronto and Vancouver.
FTB DEMOGRAPHICS
Household Income Birth Place EmploymentGender & Age
This portion of the study is sponsored in association with the Canadian Association of Credit Counselling Services (financialfitness.ca).
© 2019 Genworth MI Canada Inc.800.511.8888 | GENWORTH.CA/FB | @GENWORTHCANADA | GENWORTH.CA/LI | GENWORTH.CA
45%
44%
42%
36%
30%
17%
16%
14%
12%
50%Believe owning a home is a wiser financial decision
Wanting to own the home so you are in control of it
Saved enough for a down payment
Became financially confident that I could afford it
Wanted to buy a home now before prices increased further
Disliked renting a home
Getting married/moving in together with partner
Got a new job/raise/bonus
Birth of a child
Spoke to a professional who showed that I could afford it
91%
90%
84%
81%
80%
77%
75%
74%
73%
95%Price
Safe neighbourhood
Size/Space of the home
Style/design of homeIts value as an investment/take advantage
of rising real estate pricesProximity to work
Reflective of type of neighbourhoodyou want to raise your kids in
Energy efficiency of home
Features/upgrades
Potential to renovate and resell
Millennials25-40 year-oldsFTBs among 25-40 year olds
11% 8% 5%0
20
40
60
80
2015 2017 2019
71%
55%
64%58%
62% 60%
$50-74K$75-99K$100K+
37%
26%
22%
87%
Full-Time
6% Part-Time
1% Student
4% At Home2% Unemployed
36%
31%
33% < 30
30-40
35+
Born in Canada 75%
25%Immigrants15% New to Canada (NTC)10% Longer term
Vancouver Calgary Toronto Montreal
26%20%21%
43%
35%
42%
13%
19%
NTCAll immigr.
Looking great - Good
37% 49%
859095
100105110115
2015 2016 20182017 2019
98.9 99.5
109.5
100.6
110.8
101.3
111.7
Gap is widening
102.3
FTBGeneral Population (Gen Pop.)
• Those more likely to say they believe owning a home is a wiser financial decision include those in B.C. outside of Vancouver (62%), women over men (54% vs. 46%), those under the age of 30 (57%), and those who bought their home with a spouse/partner (54%).
• Those who are more likely to agree price is important include those in Ontario outside of Toronto (98%), women over men (96% vs. 93%), those aged 35+ (96%), and those who bought their home with a spouse/partner (96%).
WHAT THEY’RE BUYING
OBTAINING PRE-APPROVALS BEFORE SHOPPING
Home location represents a range of commuting compromises for spouses
Condominium purchases growing
More prefer homes closer to work, even if more expensive or smaller
More say they got pre-approved for a mortgage before shopping for homes
WHAT’S MOTIVATING THEM TO BUY?
• Those with high ratio mortgages are more likely to have bought a fully detached home (52%), while those putting 20% or more down are more likely to have bought a condo (25%).
• Those who plan on staying in their current home for less than 5 years are more likely to have bought a condo (32%), while those who plan on staying in their current home for 10 years or more are more likely to have purchased a fully detached home (58%).
• Those who bought their home on their own are more likely to have a condo (31%), while those who purchased the home with a spouse/partner are more likely to have a fully detached home (56%) or a semi-detached home (14%).
Just over six in ten FTBs feel housing prices will increase in the next 12 months
• Those more likely to believe home prices will increase include: those in Toronto (71%) or BC outside of Vancouver (75%), men more than women (65% vs. 60%), NTC immigrants (71%), and those whose down payment is 20% or more (65%).
• Those who are more likely to say it will stay the same include: those who purchased a fully detached home (21%), and those who purchased on their own (21%).
BALANCING COMMUTE WITH HOUSE CHARACTERISTICS
© 2019 Genworth MI Canada Inc.800.511.8888 | GENWORTH.CA/FB | @GENWORTHCANADA | GENWORTH.CA/LI | GENWORTH.CA
$
32%
$
48%
Prefer more expensive home closer to work
Prefer less expensive home further from work
A shorter commuteto work for your spouse/partner
19%
A similar commute for each of you 36%
A shorter commuteto work for you 30%
62%
Increase
18%
Stay the same
12%
Don’t know/not sure
7%
Decrease
Before houseshopping
After finding the home, but before negotiating price
After negotiatingprice
58% 27% 13%
B.C.Excl. Vancouver
19%
Significantly lowercompared to national average
Toronto
18%
Significantly highercompared to national average
Fully detachedhome
Duplex/semi-detached
home
50%
Condominium
21%
Townhouse/row house
16% 12%
2015 2017 2019
17% 16%
21%
Growing share of Condominiums
Bank of Mom & Dad effect increases with more receiving gifts/loans
Half who received a gift or loan say that without it they would have delayed buying a home
Stable financial fitness trend
Half of FTBs say they are Looking Good or Great
FINANCIAL CONFIDENCE
WHERE THE DOWN PAYMENT IS COMING FROM
© 2019 Genworth MI Canada Inc.800.511.8888 | GENWORTH.CA/FB | @GENWORTHCANADA | GENWORTH.CA/LI | GENWORTH.CA
A survey of Canadians aged 25-40 who had purchased their first home within the prior two years.*
*A total of 1,893 interviews with Canadians aged 25-40 who had purchased their first home within the prior two years. Online interviewing was completed between February 15 and March 15, 2019. Quotas were set to oversample in urban regions with weighting to bring them into overall national proportions.
32%
Buy nowSmaller down payment
51%
DelaySave larger down payment
15%
No delay Seek lower priced home
Looking goodor great
49%37%
FTBGen Pop.
Have a long-term financial planfor retirement
Confidence inlong-term
financial health
30
10
50
70
90
58% 76% 61% 83%
FTBGen Pop.
I am in great financial shape I am in pretty good shape
My financial fitness is not very good My financial fitness is very poor
I am neither in great shape nor poor shape
°15% 56% 23% 6%
71%
Montreal 26% 53% 18% 3%
*79%
73%
Toronto 19%23% 51% 20% 5% 2%
Calgary 28% 51%
*78%
16% 4% 1%
68%
Atlantic 1%19% 49% 21% 10%
°60%
AlbertaExcl. Calgary
19%19% °41% 29% 10% 1%
Vancouver
* Significantly higher compared to national average ° Significantly lower compared to national average
Montreal
OntarioExcl. Toronto
Calgary
Atlantic
Vancouver °12% 27% *47% 12% 3%
14% 35% 38% 13% 1%
*30% °24% 33% 10% 2%
19%*22% 35% 31% °9% 4%
17% 31% 35% 14% 6%
Looking Good Managing Vulnerable AlertLooking Great
* Significantly higher compared to national average ° Significantly lower compared to national average
30
1020
2015 2017 2019
40
31% 32% 37%
Gifts or Loans
Those more likely to say they would have delayed
buying their home to save more include:
• Those under the age of 30 (59%) • NTC immigrants (59%)• Those who made a down payment of < 20% (55%) • Those whose Financial Fitness is Vulnerable (63%)