About 40 per cent of Ontarians would consider living in a multi-generational home, according to a new survey analyzing how Canadians are changing their approach to home ownership.
That trend, according to a new poll released by RBC on Wednesday, can be seen in provinces around the country. Nationally, about 44 per cent of respondents said they would consider living in a multi-generational home.
Of the Ontario residents polled, three quarters said buying a home is more complicated now than it was for previous generations and about 42 per cent said multigenerational living is becoming more common due to a lack of affordability.
“Canadians are finding new ways to make one of life’s biggest purchases possible,” Janet Boyle, senior vice-president of Home Equity Finance for RBC, said in a written statement. For many families it means doing it together by pooling funds to buy a home sooner and sharing costs.
According to the survey, 55 per cent of Ontario homeowners surveyed say moving up has been harder than expected. They want a larger or different home but note that it isn’t financially realistic.
Conventional homebuying wisdom says a new entrant should buy a starter home before moving on to a bigger house. But many homebuyers today are skipping the starter home altogether.
Ontario buyers see risks in both waiting to enter the market and buying now.
Forty-one per cent are more worried about buying now and seeing prices fall. Conversely, 59 per cent are more worried about waiting and being priced out, the survey results read.
Across Canada, the poll found that people are buying later and thinking longer term.
While current owners say they bought their first home at age 29 on average, non-homeowners believe they will be 41 years old (on average) before they can get into the market, the poll results read.
For 50 per cent of non-owners, they simply don’t know when they will buy.
The survey notes that 65 per cent of those Canadians polled think past generations don’t understand the challenges of buying in today’s market and said they feel that home-buying advice from older generations is no longer true.
Instead of a starter home, nearly three-quarters (74 per cent) said they would rather purchase a home within the next two years so that they can stay in longer, rather than one they will outgrow.
We look at what a larger purchase does to the monthly payment against what moving up in five years would cost. For some, the bigger first home is the better decision. For others it isn’t, and it’s worth knowing which of those two scenarios fits your situation before you start looking.
Key Factors
• Affordability & Pooling Resources: Families combine incomes and down payments to enter or move up in a tough real estate market sooner than they could alone.
• Caregiving Support: Built-in help for childcare from grandparents and eldercare/aging-in-place support for older relatives.
• Combating Isolation: Shared daily routines help reduce loneliness for seniors and provide continuous social connection for everyone.
• Housing Types: Families are adapting through interior renovations, building laneway or garden suites, or looking for properties featuring separate self-contained secondary units (such as in-law suites or basement apartments with independent kitchens and entrances)
• Government Support: Federal programs like the Multigenerational Home Renovation Tax Credit assist families looking to structurally modify properties for multi-generational use.