Ontario post-secondary graduates delaying homeownership due to student debt, OREA report finds
A large number of young adults are delaying homeownership in the province, citing student debt as the “primary reason” for postponing this milestone, a new poll by the Ontario Real Estate Association (OREA) suggests.
"Student debt is not merely a financial burden; it's the biggest barrier to the Canadian dream of homeownership for many young Ontarians and their families,” OREA CEO Tim Hudak said in a written statement released Wednesday.
“Our research shows that the weight of student loans contributes greatly to the housing affordability crisis which, if left unaddressed, will lead to fewer young Ontario homeowners.”
According to the poll, which was conducted by Abacus Data, more than half of post-secondary graduates who have incurred student debt or loans to pay for their education are still trying to repay that money.
On average, the report found, these graduates currently owe about $14,500.
The OREA report also found that graduates with debt greater than $5,000 agree that student debt makes it more difficult to save for a home. This has prompted some young people in the province to look for other options outside of Ontario, the report notes.
According to the survey, 42 per cent of graduates are considering leaving Ontario to move to a province with a lower cost of living and more attainable housing.
The survey also found that as a result of high housing costs, nearly half of the parents of the graduates polled said they plan to stay in their family home for the next decade.
“This will prevent more housing supply from entering the market,” the report read.
Post-secondary graduates, the report states, “still have strong aspirations for homeownership” despite the debt they carry.
About 75 per cent of those surveyed said they would like to own a residential property and at least 80 per cent of graduates support “various government interventions” to address housing affordability, the report continues.
OREA has made a number of recommendations to help reduce the burden of student debt on young Ontarians, including making adjustments to Canada’s ‘First Home Savings Account’ program to alleviate student debt for those who make contributions to this account.
The association also suggests that Ontario should “permanently eliminate the accumulation of interest on all provincial student loans,” a policy which is already in effect for federal student loans.
It is also calling on the provincial government to increase the grace period for OSAP loan repayment from six months to a year to allow students “an additional six months to obtain stable employment and save money.”
“All levels of government and industry need to work together to bring affordability home to Ontario graduates,” Hudak said.
The survey used two samples for polling, including 750 post-secondary graduates who took on student debt and 750 who did not. The survey also polled 1,500 parents of graduates of post-secondary institutions, including 750 who have children with debt and 750 who have children without debt.
The survey was conducted from June 26 to July 7 and the data was weighted by region, gender, and debt.
CTVNews.ca Top Stories
'Not a scarient': New COVID-19 subvariant dominant in Canada
A new COVID-19 subvariant is dominant in Canada, representing just over 30 per cent of cases in the country, but infectious disease experts say there’s no sign it’ll evolve into a summer 'scarient.'
An imbalance of two healthy fats affects your early death risk, study finds
Eating enough healthy fats is great for brain and heart health, but new research has possibly provided even more evidence for adding them, particularly omega-3s, to your diet.
Sun shoots out biggest solar flare in almost 2 decades, but Earth should be out of the way this time
The sun produced its biggest flare in nearly two decades Tuesday, just days after severe solar storms pummelled Earth and created dazzling northern lights in unaccustomed places.
Growing wildfires across Western Canada are forcing thousands from their homes
Thousands of people in Western Canada remain displaced from their homes as wildfires threaten their communities, triggering evacuation orders and alerts.
Victim loses $2M in online romance scam
A Malahide Township resident is out more than $2 million following a romance scam.
'Inappropriate' behaviour shuts down Dublin to New York City portal
Less than a week after two public sculptures featuring a livestream between Dublin, Ireland, and New York City debuted, 'inappropriate behaviour' in real-time interactions between people in the two cities has prompted a temporary shutdown.
DEVELOPING Massive manhunt in France for prison-break gang that gunned down officers
A massive manhunt was underway in France on Wednesday for an armed gang that killed two prison officers and seriously injured three others to spring an inmate they were escorting.
Federal Tory Leader Poilievre targets illicit drugs in B.C. hospitals
Federal Opposition Leader Pierre Poilievre says the Conservatives will put forward legislation that would forbid Ottawa from "ever" granting provinces exemptions to allow illicit drug use in hospitals.
Life in limbo: Wildfire evacuees struggle through nail-biting wait
More than 2,000 people forced to pack up and leave Fort Nelson, B.C., are trying to adjust to life as evacuees, and the constant concern about what is happening back home.