Taking the plunge from renting to home ownership can be daunting. Homes are expensive, and mortgages are a serious, long-term commitment. So, aren’t two incomes better than one? Not necessarily, says online real estate marketplace Point2. In fact, according to a new report from the company, nearly half of renting Canadians are willing to take that leap solo.
The company surveyed renters and homebuyers who visited or used its online platform between March and June 2024. More than 1,300 people responded, 890 of which were renters. Point2 only considered responses from renters for this report.
It found that 42 per cent of overall renters are considering applying for a mortgage alone rather than waiting to pursue their home ownership dreams with a partner. Only 37 per cent of respondents said they plan to apply for a mortgage with a spouse, while nine per cent said they would apply with a family member. Eight per cent said they would tackle the challenges of a mortgage with a life partner.
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Home Ownership Before Marriage
According to the report, older millennials are the only generation that continues to think about home ownership in a traditional way. Respondents from that age group are likelier to already be married, which may be why 50 per cent of them said they would apply for a mortgage with a spouse.
Gen Z respondents and younger millennials were among the most motivated to buy a property, with 38 per cent of them willing to take on a mortgage solo. They’re preparing for it, too: 74 per cent of those under 25 have already saved up to $30,000 for a down payment, but an impressive eight per cent had already put aside $100,000. Meanwhile, 76 per cent of those under 34 have accumulated up to $50,000 to put toward a potential home.
Overall, renters aged 45 and older were more likely to apply for a mortgage solo. However, many of those surveyed were unsure when they would make the move and were likelier to consider downsizing from their current properties. Another interesting distinction between the age groups? Those aged 45 to 54 were also more worried about their credit score than others.
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Houses Over Condos
Despite so many potential buyers looking to purchase a home independently, the single-family home is still the most popular choice among all generations. Overall, 77 per cent of respondents sought a house, while only 12 per cent were interested in a condo. The remaining 11 per cent responded “other.”
That doesn’t mean home buyers are looking for a lavish home. Sixty-three per cent of respondents said their sweet spot is between 1,001 and 2,000 square feet. Only nine per cent said they wanted something more than 2,000 square feet, while 27 per cent said they wanted something under 1,000 square feet.
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A Growing Trend
According to Statistics Canada, the number of single-person households has been rising since 2016. The census that year revealed that for the “first time in recorded Canadian history, one-person households were the most common household type, overtaking households comprising couples with children.”
At the time, single owners represented 14 per cent of the population. According to Statistics Canada’s most recent data, that number has more than doubled to 30 per cent. These days, many young people are delaying or foregoing marriage and families to focus on careers and education.
“Young adults and single people are starting to separate two ideas that truly seemed inseparable: Buying a home doesn’t necessarily mean they need to find a partner and get married, and getting or being married isn’t a prerequisite for home ownership,” says Andra Hopulele, who authored the Point2 study.
Check out the full study here.
