Young Canadian households are abandoning the housing market, data suggest

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 92%

Business News News

Business Business Latest News,Business Business Headlines

New information from Statscan shows the average mortgage debt for younger households is shrinking, signalling they may be opting out over affordability

A real estate sale sign in a west-end Toronto neighbourhood, March 7, 2020. Evidence suggests some young households are turning their backs on the housing market.The highest interest rates in years have taken a big bite out of demand for new mortgages, but one group in particular has been affected: young households. And the evidence suggests some of them are turning their backs on the housing market.

After seeing their mortgage debt grow faster than all other age groups during the frantic pandemic rush to buy houses, the average mortgage debt of young households is now shrinking. That’s not happening in any other age group. As Statscan notes, there are different reasons why that has been happening. The most positive interpretation is that existing homeowners in that age group who bought when rates were lower are paying off their mortgages.

Some younger homeowners may also be downsizing to more affordable homes, reducing the size of their mortgages in the process. But it’s also clear that some would-be first-time homeowners are simply unwilling or unable to get on to the bottom rung of the property ladder.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines