A survey of potential first-time homebuyers found that 29 per cent between the ages of 21 and 34 are living with their parents while saving for their home down payment.
While it is no surprise that those under the age of 30 are staying home longer, whether to attend school or save for a home purchase, what is surprising is the number of adults in the 31 to 34 years old category who are also still at home!
The survey found a considerable gap between potential first-time buyers' expectations and their realities when it came to planning and saving to buy a home. "We found that, although most young people would like to purchase a home within the next few years, most do not have a practical plan to get there."
According to the survey, adults between the ages 21 and 34, on average, have been saving for their down payment for only 1.6 years, yet expect to take only a total of 3.8 years to save enough to commit to a purchase.
The average reported savings rate (as a percentage of pre-tax income) of those who live at home with their parents, 16.6 per cent. Those who are currently renting, 11.0 per cent.
What amazes me is that both the U.S, and Canadian government have reduced or suspended first time buyer incentives or incentives with savings regarding down payments.
Mother Nature had it right in the bird kingdom, when you can fly, bye bye. With humans, she must have had a bad night!