Young Canadians have learned a powerful lesson from their parents about the benefits of owning their own home. At least, that’s the conclusion that many people would make when reviewing a recent government study. According to an analysis of the findings of the General Social Survey on family transitions, recently published in Canadian Social Trends, there’s a positive link between the age at which young adults in Canada leave the parental home and the likelihood that they’ll become homeowners themselves, but only until about age 25.
Compared with previous generations, today’s young adults are more likely to live with their parents well into their 20s or return to their family home after an initial departure, says the study. One explanation is that young people want to save money towards the purchase of their own home. According to the study, there’s a link between the age at which a young adult leaves the parental home and the likelihood that they’ll become homeowners until about age 25. After age 25, the child’s likelihood of being a homeowner when they’re in their 30s declines.
About two-thirds (67%) of young adults who had left the parental home at 18 or 19 reported owning their own home in their 30s. The proportion was almost three-quarters (74%) for those who had left at 24 or 25. Beyond age 25, the later their age at departure, the lower their probability of being a homeowner in their 30s. Among those who did not leave their parents’ home until they were 28 to 30 years old, only 61% owned their own home in their 30s.
The link between home ownership and young adults who return to live in the parental home is more complex. As a whole, these so-called “boomerang kids” are just as likely to eventually become homeowners as those who leave their parents’ home only once. For boomerang kids, it largely depends on their reasons for returning to live with their parents. Those who returned because they lost their job or were having financial problems were much less likely to be homeowners in their 30s than those who never came back home. Interestingly, young adults who “boomeranged” because a relationship ended or because they had finished their studies were no less likely to become homeowners than those who never returned to live with their parents.
Are you a young adult who’s thinking of taking their first step on the property ladder or do you know someone who’s ready to make a move? Your localColdwell Banker® sales professional can help with everything from ‘crunching’ the numbers to see exactly how much home you can afford to offering creative financing options to help make it happen. Why not call and find out how close you may be to making your dream of home ownership a reality!