The article discusses the challenges of homeownership faced by young Quebecers, highlighting rising housing prices and a declining homeownership rate among younger generations. It features insights from Laurence Vincent, who proposes a $1 billion fund to assist first-time buyers lacking parental support. Various current and potential solutions, such as employer loans and extended amortization periods, are presented. Personal stories illustrate the struggles of young adults, many of whom are forced to rely on family support or delay homeownership altogether.
For many young individuals in Quebec, the aspiration of homeownership feels increasingly unattainable. Is this the tale of a lost generation, and is it time to amend the existing frameworks to support them?
Laurence Vincent, the president of Prével, voiced her concerns, stating, “Previous generations had the opportunity. Why are we denied?”
As a developer of condominiums, Vincent advocates for more accessible pathways to homeownership for young buyers. She believes current circumstances create an “unfair” situation, obstructing wealth building for the younger generation.
Her proposal? Establishing a $1 billion fund in Quebec aimed at assisting first-time buyers who lack familial financial support. This initiative would provide an $80,000 loan for a down payment on a $400,000 condo, with repayment occurring upon sale, alongside a share of the profits.
Vincent dubs this initiative a “Quebec Marshall Plan for homeownership,” and further details are available in another piece in this issue.
The Diminishing Dream
The median price of single-family homes in Quebec has skyrocketed from $255,000 in 2019 to $448,550 in 2024, a staggering 76% increase according to the Association professionnelle des courtiers immobiliers du Québec.
Conversely, the rate of homeownership among young adults is declining, dropping from 44.2% to 42.4% for those aged 25 to 34 from 2016 to 2021.
While some may argue about a lost generation, Guy Cormier suggests a more nuanced view, acknowledging intergenerational inequalities.
“Today’s youth often wait 10 to 15 years longer than their parents did to become homeowners,” notes Cormier, the CEO of Desjardins Group. He points out that homeownership was a feasible goal for a 20-year-old in the past, whereas it may now take until their 30s, 35s, or even 40s.
Generation Z and millennials display increasing skepticism about homeownership; surveys indicate that while dreams of buying a home persist, many feel the current market conditions render it impossible.
Younger adults express frustration over escalating prices and a lack of available housing in Quebec.
2021 Homeownership Rates Compared to 2016
59.9% (-1.4%)
42.4% (age 25-34) (-1.8%)
15.6% (under 25) (-0.9%)
Source: Statistics Canada 2021 census
Existing Solutions
While some are familiar with them, others aren’t. Here are five strategies to facilitate homeownership.
1. Home Buyers’ Plan (HBP)
The HBP allows you to withdraw up to $60,000 tax-free from your Registered Retirement Savings Plan (RRSP) to apply towards a down payment. Couples can combine their contributions, effectively doubling the available funds. However, the withdrawn amounts need to be repaid within a 15-year timeframe.
2. Tax-Free Savings Account for First-Time Home Buyers (TFSAFPHB)
Introduced on April 1, 2023, this tool complements the HBP. It enables an annual contribution of up to $8,000, totaling a maximum of $40,000. Withdrawals for first home purchases remain tax-free.
3. First-Time Home Buyers’ Tax Credit (HBTC)
This federal non-refundable credit can save you up to $1,500 in taxes, with Quebec residents receiving a reduced amount. In 2020, about 230,510 Canadians utilized this incentive, compared to just 64,476 in Quebec.
4. Municipal Programs for New Buyers
Different cities offer their own assistance programs. For example, in Montreal, first-time buyers can receive between $5,000 and $15,000, depending on their circumstances.
5. Renovating a Garage into a Condo
Starting January 15, homeowners can refinance their mortgages to fund the conversion of garages or basements into additional living units. New mortgage insurance rules allow loans up to 90% of the home’s value, amortized over 30 years.
Building More Homes—Desjardins’ Viewpoint
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