An overwhelming majority of millennials want to buy their own home with 83 per cent telling an HSBC survey that they intend to do so in the next 5 years.
But the barriers to becoming a first-time buyer include slow wage growth and house price inflation and saving for a downpayment is becoming harder as a result.
The lender’s survey was conducted in 9 countries including Canada, Australia, UK, the US and China.
In Canada, 34 per cent of respondents were already homeowners with 84 per cent intending to buy within the next 5 years. For the US, 35 per cent already owned their own home, while 80 per cent intend to buy within the next 5 years.
“This study challenges the myth that the home ownership dream is dead for millennials around the world,” said Louisa Cheang, HSBC’s Global Head of Retail Banking. “With four in ten already owning their home, the dream of home ownership for millennials is definitely alive and kicking.
The highest level of ownership among millennials was in China (70 per cent) and their intention to buy was among the highest (91 per cent) of the nine countries polled.
Currently, millennials in Mexico are more likely to own their own home (46 per cent) than their peers to the north with intention to buy at 94 per cent.
HSBC’s Beyond the Bricks study reveals that 69 per cent of respondents say they are finding it hard to save a downpayment while a third could not afford the type of home they wanted.
The report highlights that house prices in Canada increased 7.4 per cent in 2016, based on IMF figures, while the bank’s projected wage growth is just 0.9 per cent for 2017.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate