70% of China’s Millennials Are Homeowners, Canadians and Americans…Not So Lucky

70% of China’s Millennials Are Homeowners, Canadians and Americans...Not So Lucky

Buying a home is tough as a millennial, but apparently not as hard if you’re from China. This is according to an HSBC study looking at global buying behaviour of millennials. The survey looked at nine countries, and found that rates were within a few points across the globe – except in China.

40% of Millennials Own Their Own Home

The rate of global millennial homeownership is 40%, a little higher than I expected. Leading the pack are Chinese millennials, where 70% owned their home. That’s not a huge surprise since the country’s national average of homeownership is a whopping 90%. The US and Canada was somewhere in the middle, with 35% and 34% respectively. The UAE had the lowest rate of ownership, coming in at just 26%. Millennials in China are almost twice as likely to own a home than the average millennial in the other eight countries.

Source: HSBC.

Majority of Millennials Overspent On Their House

Millennial first-time buyers have the tendency to overspend, and it’s a global trend. Over the past 2 years, 56% of global buyers surveyed said they went over budget. A massive 70% of UAE buyers went over their budget, followed by 68% of Malaysian buyers. Canada and France were the least likely of the group, with 42% and 41% of buyers over budget respectively. Only 15% of survey respondents had a precise budget, so it’s easy to see why so many went over the “budget.” Hard to stay within a number if you don’t know what that number is.

Tapping The Bank of Mom and Dad

Another global buying trend for millennials is tapping the bank of mom & dad. 36% of buyers had support from their parents. This number was highest in the UAE, where 50% had parental help. China was a little higher than Canada at 40% and 37% respectively. French millennials were least likely to get parental support, with only 26% receiving help.

Source: HSBC.

The results of the survey show that homeownership amongst millennials faces similar barriers across many countries (except in China). Having parental help to buy a home is increasingly becoming a requirement. Now the big questions are, is global asset inflation pushing prices too high, are millennials facing a lack of economic opportunity, or is homeownership not a priority for this generation?

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  • Van C. Ouver 7 years ago

    The Chinese government is putting their money where their mouth is to ensure the success of their people. The Canadian government is also concerned with ensuring China has maximum opportunity, and instead we’re ignoring the state of young people.

    • Danuta 7 years ago

      China is facing a debt bubble. I hope that Canadian and Chinese governments will cooperate on agreement similar to the Interpol to control the money borrowed in one country in order to buy an asset in the other, then defaulted on it and flee.

  • Mike Lam 7 years ago

    Being Chinese, you *have to own land.* It’s like American teens in the 50s with muscle cars, if you don’t have it, you’re not attractive.

    Cultural differences, Chinese women are looking for stability. A home helps to convey that.

    Also keep in mind we receive parental support because usually our parents generally move into our homes eventually. There aren’t as many 5 star retirement homes in China as there is here in Canada.

  • Rui 7 years ago

    I hardly think that someone would not want to have a home. I work with many in that age bracket (hard not to in IT) and the usual complaint is not that they do not want to own their own home but that it is, for the most part, unattainable. Hell, I make a good wage and starting out fresh again and I cannot afford a home on my own unless I move to the sticks where infrastructure and transit and not even passably acceptable. You expect a young person to be able to do that?

    • Owen 7 years ago

      Real estate transaction fees are very high and are charged on the leveraged/borrowed portion of a home, not just the principal. Millennials shouldn’t own a home unless they’re sure they’re going to stay put. Also, you only get the first time buyer exemption once, you might as well wait until you’re buying a property you’re going to keep for a long time. Encouraging home ownership is also bad government policy as it decreases people’s willingness to move for work reasons.

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