Real estate brokers are confirming what young people already know — it’s never been tougher to

buy a first home in this country. Re/Max Canada looked back at the past 30 years of home ownership in this country and found that “the current cohort of property purchasers is facing among the most formidable headwinds yet.”

The homeownership rate for 25 to 29-year-olds dropped from 44 per cent to 36 per cent between 2011 and 2021. The rate fell almost 12 per cent for people aged 30 to 35 and almost 9 per cent for those aged 34 to 39.

According to a survey by Royal LePage this past summer only 47 per cent of Ontario millennials and gen Zs believe that home ownership is attainable and 27 per cent don’t believe it’s achievable at all.

Though home prices have dropped since the pandemic housing boom, average price gains are still outpacing wage growth, making it “exceedingly difficult” for first-time buyers to enter the market, said the Re/Max report.

The short supply of  lower priced homes is driving up values and cancellation of construction projects threatens tighter conditions in the future.

One trend Re/Max brokers have noticed is that aging empty nesters and retirees are competing with first-home buyers for smaller homes, particularly bungalows.

“This competition makes winning a bid even harder for first-timers who are up against better-positioned buyers,” said the report.

Mortgage stress tests, high down payments and carrying costs add to the challenge.

But the report also highlights how much home ownership has paid off for Canadians over the past 30 years. Halifax home prices have risen 460 per cent in that time, the biggest increase in the country.

The Greater Toronto Area comes second with gains of 436 per cent and Saskatoon posted the third highest increases in the country at 377 per cent.

“But obstacles are dimming the dream for future generations,” said the Re/Max report,  which urged governments and the private sector to work together to lower barriers.

The federal government’s Build Canada Homes which will oversee affordable housing programs in six communities initially “could not come fast enough,” it said.

“Supply gaps are worsening, and the pace of new construction does not bode well for the future of Canada’s housing markets,” said Don Kottick, president of Re/Max Canada.

“The chronic undersupply will lock a growing number of potential buyers out of the

housing market for longer and perpetuate the affordability crisis as pressure on pricing will remain a near certainty as long as demand outpaces supply.”

Adjustments to policy would also ease the path to homeownership. Brokers recommend extending the amortization periods for first-time buyers and dropping the additional two per cent needed to qualify on the mortgage stress test.

The report also suggests removing Land Transfer Taxes on homes under a certain price and GST/HST on new homes.

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The United States has been a bit dry on data lately because of the government shutdown, so when September’s consumer price index came out Friday it caused a stir.

The S&P 500 hit another all-time high after that data showed underlying inflation was at the slowest pace in three months, raising bets that the U.S.

Federal Reserve would cut its interest twice more before the year is out. “The Fed now has everything it needs to make a rate cut decision [this] week despite the dearth of timely economic data due to the Federal Government shutdown, now in its fourth week,” said Scott Anderson, chief U.S. economist with BMO Capital Markets.

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With increasing life expectancy and the rising cost of living, the financial and emotional challenges of the sandwich generation are mounting.

A 2024 Ipsos study said 70 per cent of Canadians aged 25-65 are worried about the financial strain of supporting both their parents and children. Nearly two thirds believe this caregiving responsibility might impact their career progression or ability to remain employed.

Susan Daley, a senior investment adviser and portfolio manager at Richardson Wealth, explains how best to be prepared for the financial, emotional and logistical challenges.

Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

McLister on mortgages

Find out more Want to learn more about mortgages? Mortgage strategist Robert McLister’s

Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his

Financial Post on YouTube

mortgage rate page for Canada’s lowest national mortgage rates, updated daily. Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at 

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