Nicht der Finanzplan ihrer Eltern: Kanadier der Generation Z verzichten auf das Sparen für eine Anzahlung und gönnen sich Geld für Reisen; Da Wohneigentum scheinbar unerreichbar ist, haben immer mehr junge Menschen ihre Prioritäten von traditionellen Zielen abgelenkt
https://financialpost.com/wealth/why-gen-z-prioritizes-travel-over-homeownership
31 Kommentare
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>”We’re currently renting in a neighbourhood that’s pretty nice, and we probably couldn’t afford a home in it,” she said. “Paying for a mortgage for 30-plus years doesn’t seem like something I want to put on my plate.”
Obviously the down payment is the massive hurdle but it’s either mortgage for 30 years or rent for the rest of your life. Something gets put so far out of reach it makes sense to just bypass it though. Homeownership is still expensive even when the mortgage is paid off
This article sounds exactly what they wrote about millennials in 2010. Also, many gen Z are just out of school at best, most still being in school, so no surprise they are prioritizing travel over saving and a house. I did the same too when I was 23.
Even a good piece of cheese after dinner is almost out of reach now homeownership my 🫏 lmao
We all end up dead no matter what we do so we might as well enjoy our time and have some fun.
Average home buying age in Canada is in the mid 30s now a days. Meanwhile the average Gen Z is barely out of university. I think it’s too early to conclude yet what home ownership will look like for Gen Z as time goes on.
It looks unlikely so I’ll make it impossible.
I’ve spoken to so many people who are just basically giving up on home ownership.
Honestly, I don’t blame them.
The disgusting abhorrent rise in home prices is hard to put into words. It represent a decline in standard of living that is so drastic that I think few Canadians realize just how much has been stolen and ripped from their hands.
My Grandpa was an inspector at a tin can factory. With that income and no high school education he was able to support a stay at home wife, 3 kids, a car and afford his own home.
Today – that job has either been replaced by a robot – or if it does still exist. The person working it is lucky if they can afford to rent a shoebox clapped out apartment with 3 roommates eating ramen every night.
It’s not even remotely the same country we are growing up in.
I just bought my own home this year and it took me and my wife making a combined 160K to afford it plus help with the 150K downpayment. All for a home that’s older, has more issues and is much smaller than the ones that either of our parents bought. Even though our parents had less education and less income they got so much more.
The reality of Canada for Gen Z is that we need to work 3x as hard for 1/3 of the scraps our parents and grandparents got to waltz into.
my grandma who lived to be 78 said the secret to retirement was saving 10% of her paycheque her whole life.
I told her to her face that the current generation has to save 30%+ of their paycheque if they dont plan on dying in poverty and she literally did not believe me. 10% is nothing.
I did the same thing. I enjoyed my 20s, took risks in my 30s and then finally bought a house in my 40s.
Its not out of reach, youre just not going to get a house when youre 25.
I mean I (25M) work for an engineering consulting firm, my own online business and several investments. Zero debt yet starting homes in my city are so expensive the majority of them have been on the market for over a year, and that’s after peak 2023 housing prices. In the main city, they can sell a shoebox for $500-600k. Just outside the city, I can maybe get $100k less if I’m lucky.
The main thing the media keeps talking about is the fact that housing has gone down to 2017 housing prices. The main caveats here is that this is 2017 inflation adjusted housing prices and general affordability absolutely plummeted over 8 years. Anyone over Gen X in my family I have to regularly remind them that I already need two of me, so I can’t just work harder.
Mid 30s or 40s at peak career earning, they will be able to buy a house. Just not when they’re mid 20s unfortunately.
Also, if you can get 20% down payment, you can get a condo with mortgage + condo fees that are very similar to rent for a similar unit.
I can’t imagine how depressing it must be that young people exposing themselves to the airline and hospitality industry in 2026 represents some kind of positive highlight in their life.
They wait for their parent to die and they will have more house they need
I would do the same.
I’m from New Zealand originally. We call this our OE (overseas experience), I guess other places call it a gap year. It’s normal to be young and travel and stay at hostels etc.
Its kinda normal to not save for a down payment when young, it’s definitely a good time to travel.
If you do the math with renting versus buying, it often comes out in a wash in any major city in Canada even after twenty years of time including the equity. That’s since about 2019 when housing prices started to spike.
People look at owning a home and often think it’s just the mortgage. If you follow the rule of 5 and maybe even the rule of 7 now that interest rates are up higher, rents are so much lower it is often a smarter choice. I know I won’t convince home oriented people of that, but it’s a fact.
Buying a house in Vancouver has been the biggest source of stress on my life. I can barely afford to live anymore.
I’ll own a home when my parents die. Well…half of one anyway.
We are travelling to get out of our parents houses for a while
its literally impossible for young people without an amount of generational wealth so this is unsurprising.
I work in travel (pre-pandemic and post-pandemic). The amount of bookings in the past 8 months has been nuts. People are definitely foregoing big purchases and saying ‘fuck it’ and choosing to travel instead. My full-time coworker had the opportunity to move out from her parents’ place and instead she chose to do a European land tour. Her logic was ‘Yeah I can afford to move OUT now, but I’ll have bills once I do and I’ll never have an opportunity like this again’.
I honestly think a lot of the problem here is that people have been conditioned over the decades to embrace debt and with transactions being mostly digital, it’s harder for people to judge spending. I know lots of folks with HUGE debts that vacation regularly. It blows my mind.
I think it’s too early to say Gen Z is shunning homeownership because they’re mostly still in their 20s.
That said, there definitely are some people who basically think “I’ll never own a home therefore I should spend more on consumption”. That’s a nonsense way of thinking, and just digs them deeper into a financial hole.
Study after study shows that renters will generally perform about the same financially as owners, IF they take the money that would have gone to homeownership and invest it into a total market index fund.
Housing is expensive, yes. Young generations have to accept that many will be living in apartments and condos their whole lives, which is tragic. That doesn’t mean it’s rational to financially sabotage their own futures.
I am told to be personally responsible but I did not choose to be brought to life? Why would anyone choose to be born into wage slavery? I probably shouldn’t spend so much time on conspiracy websites like statcan.gc.ca and ipcc.ch and start saving for my lil‘ nest egg
GenZ Canadians have been primed from their first day online, via ads, peer pressure, influencers, to hanker for things that are overpriced.
Has it made them happy? I don’t know – ask their counsellors.
It is more challenging than it used to be, but it can be done, mainly if you live outside of the top 6 metros and if you also invest the money you are saving. My wife and I saved up our 20% down payment over 4 years and were able to get close to double in stock gains since we bought a large chunk of our investments during the COVID downturn. I was working full-time for all 4 of those years as an engineer in training and my wife was finishing school and worked full-time for 2 of those years as a registered nurse. Investment growth got us to and above that 20% mark and left us enough to buy with extra left over. Homeowners at 28 in SW Ontario.
Youth are abandoning dreams of a home and a family to spend money outside the country. So we bring in immigrants to fill labor positions who in turn, spend money on their families outside the country. Our birth rate is plummeting, theres no meaningful internal investment happening. Canadians have been pretty clear about how they feel about current immigration targets, and they also dont want to bring children into the world to be a corporate wage slave. So where does that leave us, Canada?
Well its definetly easier and faster to save for a trip to Japan nowadays 🤷♂️
Wait till they find out our retirement plan is death!