Housing affordability is usually framed as a supply problem or a price problem. But recent academic research suggests something deeper may be happening.

The research finds that when young people begin to believe homeownership is permanently out of reach, their financial behaviour shifts in meaningful ways. Renters who feel shut out are more likely to consume more relative to their wealth, reduce work effort, and take on higher-risk investments. Meanwhile, those who still believe ownership is attainable tend to save more and double down on their efforts.

In this episode, I'm joined by Dr. Preet Banerjee — behavioural finance researcher, Globe and Mail columnist, and founder of YourMoneyDegree.com — to unpack what this means for individuals and for the broader economy.

We explore how housing may be reshaping motivation and long-term planning, whether this "giving up" effect is cultural or universal, and what the appropriate public policy response should be. If homeownership has long served as a near-term, concrete financial goal that anchors behaviour, what happens when that goal disappears for an entire generation?

This conversation goes beyond housing prices. It's about belief in the financial life cycle — and what happens when that belief begins to erode.

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The Move Smartly show is hosted by John Pasalis, President and Broker of Realosophy Realty. MoveSmartly.com and its media channels on YouTube and various podcast platforms are powered by Realosophy Realty in Toronto, Canada.

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