Traditional thinking among Canadians is that homeownership is favourable to renting; an attitude that has boded well for mortgage brokers who have a large majority of the population looking for mortgages to tap into. But what if attitudes shift and biases toward renting decrease?
The Globe and Mail took a look at one particular University class’ assignment that found these soon-to-be-grads are more partial to renting than buying, even when offered a 20 per cent gift.
“Last year, in a class of 29 students, a clear majority said they would buy,” Prof. Richard Harris said to the Globe’s Rob Carrick. “I was surprised because I had spent a lot of time speaking about the dangers of price bubbles, and about the opinion of most experts that the markets in many Canadian cities had moved, or were moving, into bubble territory.”
This year, Carrick writes, only five of 23 students said they would buy.
Millenials will have an increasing amount of buying power in the next few decades and although sample size was admittedly small, the results illustrate a generation that is more willing to consider renting over purchasing.
The assignment asked them to imagine attaining a job in another city with the stipulation that they had to stay for five years and that an aunt would offer each a 20 per cent down payment to purchase a house. Read on to see what the students had to say.