Generational Gap in Property Ownership: Young People Lagging by a Decade, Warns Guy Cormier

Quebec‘s Youth Face Delayed Homeownership, Warns Outgoing Desjardins CEO

Montreal, QC – Young Quebecers are facing a critically important delay in achieving conventional milestones like homeownership and starting families, perhaps waiting a decade longer than their parents’ generation, warns outgoing Desjardins CEO Guy Cormier. In a candid interview with Radio-Canada,Cormier expressed concern over the growing inequity facing today’s youth.

“We’re seeing a generation of 18 to 25-year-olds realistically anticipating that establishing their lives – buying a home, raising a family, building wealth – will likely begin between 30 and 40, whereas their parents achieved this between 20 and 30,” Cormier stated. “That’s ten years of lost opportunity to build a financial foundation and secure their future.”

Cormier emphasized the detrimental impact of this delay, noting the lost potential for asset accumulation and retirement savings. He attributed the issue not to a lack of awareness, but to a confluence of escalating challenges, including rising living costs, interest rates, housing shortages, and increasing homelessness.

“We are bombarded with challenges,” he explained. “We need to prioritize and collectively determine how to address thes issues.”

The CEO also pointed to Quebec’s relatively small population as a contributing factor, suggesting a larger workforce could alleviate some of the pressure. “We cannot afford to lose a young person in Quebec,” he stressed. “Each young person unable to reach their full potential represents a loss for the individual, society, and their family.”

Cormier issued a stark warning, stating Quebec’s standard of living is currently at a “point of vigilance.” While acknowledging the progress of the past 50 years, he cautioned against complacency.

“We cannot take our progress for granted,” he said.”we must remain vigilant and work diligently to ensure continued success for our society.”

Cormier is set to conclude his tenure as CEO of Desjardins in the coming weeks, handing the reins to Denis Dubois on September 2nd. His departure comes with a clear message: addressing the challenges facing Quebec’s youth is paramount to the province’s future prosperity.

What policy changes could effectively address zoning regulations to increase housing density?

The Widening Divide: Homeownership rates by Generation

Recent warnings from Guy Cormier, CEO of Laurentian Bank, highlight a concerning trend: young Canadians are falling considerably behind previous generations in terms of property ownership. The gap isn’t incremental; Cormier suggests it’s roughly a decade. this means today’s young adults are experiencing homeownership rates comparable to those of their grandparents’ generation at the same age. This article delves into the factors driving this generational wealth gap and explores potential solutions for aspiring homeowners.

Key Statistics & current Trends in Real Estate

Declining Homeownership: statistics Canada data consistently shows a decline in homeownership rates among younger demographics (under 35). In 2023,only 36.9% of Canadians under 35 owned a home,compared to 59.2% of those aged 55 to 64.

Rising Housing costs: The primary driver is the dramatic increase in housing affordability. major metropolitan areas like Toronto and Vancouver have seen property values skyrocket, outpacing wage growth. The average home price in Canada now exceeds $720,000 (as of July 2025), a notable barrier for first-time buyers.

Increased Debt Levels: Young people are entering the housing market with higher levels of student loan debt and other financial obligations, making it harder to qualify for a mortgage and save for a down payment.

shifting Employment Landscape: The rise of the gig economy and precarious employment contributes to income instability, further hindering the ability to save for a down payment.

Factors Contributing to the Homeownership Crisis

Several interconnected factors are fueling this generational gap in housing. Understanding these is crucial for developing effective strategies.

Economic Pressures & inflation

inflation and rising interest rates have significantly impacted mortgage rates, making homeownership more expensive. Even with a down payment, the monthly carrying costs can be prohibitive for many young Canadians. The Bank of Canada’s monetary policy, while aimed at controlling inflation, has inadvertently exacerbated the affordability crisis.

Supply and Demand Imbalance

A chronic shortage of housing supply,particularly in urban centers,is a major contributor. Years of underbuilding, coupled with restrictive zoning regulations and slow permitting processes, have created a housing supply crisis.This limited supply drives up prices and intensifies competition among buyers.

Changing Demographics & Urbanization

Canada’s population growth,fueled by immigration,is concentrated in major cities,further straining the existing housing infrastructure. Increased urbanization leads to higher demand for housing in already expensive areas.

Investor Activity & Speculation

Increased activity from real estate investors, including both domestic and foreign buyers, has contributed to rising prices. Real estate speculation, where properties are purchased with the intention of quickly reselling for a profit, can artificially inflate prices and reduce affordability for end-users.

Impact on Young Canadians & the Economy

The consequences of this homeownership gap extend beyond individual financial hardship.

Delayed Family Formation: The inability to afford a home can delay major life decisions,such as starting a family.

Reduced Economic Mobility: Homeownership is a key driver of wealth creation. Without access to this wealth-building opportunity, young people may face limited economic mobility.

Increased Financial Stress: The burden of high housing costs can lead to increased financial stress and mental health challenges.

Potential Economic Slowdown: A decline in homeownership rates can dampen consumer spending and slow economic growth.

Potential Solutions & Policy Recommendations

addressing this crisis requires a multi-faceted approach involving government intervention, innovative financial products, and a shift in societal attitudes.

Increasing Housing Supply

Zoning Reform: Relaxing zoning regulations to allow for increased density and a wider range of housing types (e.g.,townhouses,duplexes) is crucial.

Streamlining Permitting Processes: Reducing bureaucratic delays in the permitting process can accelerate housing construction.

Incentivizing Affordable Housing Progress: Providing financial incentives to developers to build affordable housing units.

Enhancing Affordability

First-Time Homebuyer Programs: Expanding and improving existing programs that provide financial assistance to first-time homebuyers.

* Shared equity Mortgages: Exploring innovative mortgage products,