Can millennials afford to rely on their home as a retirement plan?

Price, location, affordability all come into play as younger investors delay or revisit expectations of first home ownership.

Ruth Saldanha 22 October, 2018 | 5:00PM

For many people, the single largest asset they will own in their lifetime is their home. As a result, the home often becomes a key component of retirement plans, with many soon-to-be retirees considering downsizing homes to fund retirement.

"Traditionally, many older adults have considered home equity as part of their estate plans; their homes are where they live, of course, but they're also an asset that they would pass to their children or grandchildren after they're gone," says Morningstar's director of personal finance Christine Benz.

But with the high cost of home ownership in Canada right now, can millennial investors even afford to buy a home right now? And for those young people who are able to become homeowners, will residential real estate appreciate enough to allow them to tap into their home equity in retirement?

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Ruth Saldanha  Ruth Saldanha is Senior Editor at