Doom spending and doubt: Younger Canadians rethink homeownership
He told Canadian Mortgage Professional he’s seen a broader cultural shift among younger buyers, one that’s sometimes described as “doom spending.” With many of those Canadians increasingly convinced they’ll never be able to put together enough for a downpayment or afford a home, some are prioritizing travel and experienced-based spending instead of saving for a home.
“Trips and things like that are way more normal than they ever used to be,” he said. “Now, I think it’s very normal for people to go on a trip every year. It’s that type of spending, and saving money is becoming less of a thing.”
The grim picture for young potential homebuyers is illustrated by the fact that many are having to turn to family assistance to afford a downpayment. The so-called Bank of Mom and Dad has been a major factor in the Canadian housing market in recent years, creating a clear divide between buyers whose families can afford to help them and those whose relatives aren’t in a position to do so.
What are brokers advising disillusioned young homebuyers?
Clarke said it’s common for younger buyers not to realize that plenty are in the same boat, and described his approach as resetting expectations rather than simply running numbers. “I try to set the expectation of what normal is, because sometimes people think they’re the only ones going through how hard it is,” he said.
“I explain that a lot of people get help from family. Sometimes people feel too embarrassed to even ask their family for help, so just explaining how normal that is gives them a bit of reassurance that they’re not doing anything wrong by asking.”
