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Study: Young Canadians feel stuck renting

Posted By: Newstalk 1010 · 3/20/2013 5:15:00 PM

A new study says a growing number of young Canadians think they've got little hope of ever owning a house or condo.

The Royal Le Page survey, conducted by Leger Marketing, suggests two-thirds of Generation Y (people 19 to 33 years old) believe home ownership is well beyond their means and will not be a reality for them any time soon.

Real estate industry experts say the biggest obstacle to young people taking the plunge on owning their own home is the set of strict mortgage rules brought in last summer by Federal Finance Minister Jim Flaherty.

Just under half of survey respondents (45.8 per cent) said that the new rules will affect their ability to purchase a home to some or a large extent.

When asked, 72.4 per cent of Generation Y said the price of housing is another factor than makes them pessimistic about owning their own home.

The study says the 19-to-33 crowd will most likely rent their living space but don't see doing so as a desirable long-term solution.

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  1. Brandon posted on 03/20/2013 05:34 PM
    As a member of that generation, I agree with the sentiment. Though I wouldn't say the mortgage rules are to blame. I blame the fact that I don't want to be stuck in a super long mortgage, and do not have the income to afford the 10-20% down payment that would eliminate that long term hurdle.

    Renting isn't that great either, if you want to live in a decent city/area. I work in Burlington, but I am looking to move to Hamilton since its a difference of paying $600 a month vs $1000 a month for the same amount of space.

    To quote a meme "THE RENT IS TOO DAMN HIGH!"
  2. jo posted on 03/20/2013 07:09 PM
    mortgages are a robbery, have you seen how much money actually goes towards the principle? and how much gets paid to the lender for borrowing that money? this system is corrupted and I don't see how people can get ahead unless they are making 6 figures these days.
  3. Bryan posted on 03/21/2013 04:53 PM
    My Fiance and I together make more than $80,000 a year (before taxes) and the best mortgages we can get are $300,000 at 25 or 30 year ammortization. We live and work in toronto and if we wanted to own something we would be looking at houses 400,000 and up. The only places are condos that are in the $300,000 range. We already live in a condo, so it looks like we will have to move farther out and contribute to the traffic on the 401 or QEW traffic.
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