Whether you’re interested in learning more about first time home buyers in Canada or considering becoming a first time home buyer yourself, we’ve compiled these stats and facts that should be interesting to you.
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Interested in Ontario home insurance? Click here.
WHO IS THE TYPICAL FIRST TIME HOME BUYER?
According to the Tarion New Home Buyers Report, first time home buyers are more likely to be single millennials born between 1981 – 1996. (1)
35% of first time home buyers were born outside of the country but are well established in Canada, having been here for an average of 17 years before the time they purchased their first home.
HOW OLD ARE FIRST TIME HOME BUYERS?
Demographically, first-time homebuyers tend to be younger, with a median age of 36 years, compared to approximately 50 years old among investors and repeat buyers. (2)
WHAT TYPE OF HOMES ARE FIRST TIME HOME BUYERS INTERESTED IN?
While there’s no surprise as to the top factors new home buyers consider when considering purchasing a new home with 98% of survey respondents saying the home size and price are at the top of the list, there are some interesting stats related to millennial home buyers. (1)
- Due to their energy efficiency, 58% of first time home buyers prefer newly built homes.
- They’re also more likely to consider pre-construction homes (81%) within urban areas (63%).
- Only 42% are considering buying a condo.
HOW MANY HOME BUYERS ARE FIRST TIME HOME BUYERS?
First-time homebuyers represent a pretty significant portion of the Canadian housing market.
According to data from Statistics Canada, approximately 9% of households (1.3 million out of 14.8 million) purchased their first home between 2013 and 2018. (3)
In 2020, a few Canadian provinces experienced notable increases in the number of first-time homebuyers.
- British Columbia: 25,315 first-time buyers, a 28.0% increase from 2019.
- Nova Scotia: 5,830 first-time buyers, a 21.0% rise from 2019.
- Manitoba: 9,180 first-time buyers, a 24.1% increase from 2019.
Here in Ontario, the percentage of home purchases made between 2013 – 2018 by first time home buyers was 8.9%.
RELATED POST: First time home buyer insurance discount.
AVERAGE PURCHASE PRICE FOR FIRST TIME HOME BUYERS
Much like knowing the specific average cost of home insurance in Ontario, determining the exact average cost of homes purchased by first-time homebuyers in Canada is challenging due to limited data.
However, let’s look at general housing market trends to gain some insight.
As of December 2024, the national average home price in Canada was approximately $676,640.
This was a 2.6% decrease from November 2024 but a 3% increase year-over-year when compared to December 2023. (5)
In Ontario, the average home price exceeded $865,000 province-wide in 2024, with Toronto’s average surpassing $1,000,000. (6) (WOWZA!)
These figures may indicate that first time home buyers often purchase homes that are priced below the regional median, likely due to budget constraints and affordability considerations. Which makes sense considering the age of first time home buyers.
ARE FIRST TIME HOME BUYERS PURCHASING THEIR HOME ON THEIR OWN?
In Ontario, some trends among first-time homebuyers have evolved over the years.
Since 2016, we have seen a decline in single-party purchases (those buying a home on their own) and an increase in multi-party purchases (those buying a home with a partner, friend or parent).
This can be due to factors like changes in mortgage regulations and affordability.
Additionally, since 2022, there’s also been a rise in mortgage-free purchases, reaching a 13-year high of 6.1% in the first half of 2024. (3)
We hope these statistics highlight the dynamic nature of the Canadian housing market and the evolving profile of first-time homebuyers across the country.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
SOURCES:
1. tarion.com
2. mpamag.com
4. teraintelligence.teranet.ca
5. wowa.ca
