1 in 3 Canadian Millennials are looking to buy a home in the next 2 years
– via BuzzBuzzNews
As housing affordability continues to deteriorate in Canada’s largest cities, many industry watchers have wondered if Millennials might give up on the dream of homeownership, at least for now. But according to a new survey, that’s not the case at all.
Nearly one in three Canadian Millennials are planning to buy a home in the next two years, according to a new study from private insurance provider Genworth Canada and the Canadian Association of Credit Counselling Services, released today.
“Over the next two years…30 per cent of Millennials plan on making their first home purchase, making them the engine of the real estate market,” reads the study.
That’s 7 per cent higher than the 23 per cent of Canadians looking to buy a primary residence in 2018, according to a recent survey from BMO. The 30 per cent figure also mirrors the findings of Zoocasa’s 2018 Housing Trends Report, which found that 84 per cent of Millennials surveyed felt that owning a home was an important life milestone.
“Homeownership remains a coveted goal for many Canadians,” reads the Zoocasa report. “However, achieving this perceived life milestone remains as challenging as ever in 2018, as increasing home prices and a rising interest rate environment present obstacles to ownership.”
Over half of Millennials surveyed in a recent report by Nanos Research Corporation on behalf of the Ontario Real Estate Association (OREA) indicated that homeownership is unaffordable in their neighbourhood.
“The dream of home ownership is slipping away from an entire generation of young people,” writes OREA CEO Tim Hudak, in a statement. “Nearly half of Ontarians between the ages of 25 and 34 are still living at home with their parents. We need to take action to address this problem.”
The OREA/Nanos survey also found that 58.7 per cent of non-Millennial Ontarians agree or somewhat agree that homeownership is unaffordable in their neighbourhood, while 41 per cent listed saving enough for a downpayment as the most important barrier to owning a home.
By: Sarah Niedoba
Notes About Article / Blog:
While it is true that Toronto has become very expensive and homeownership is harder than ever, it is important to know that the home ownership dream is still alive… very much alive. That is, if you really want it (like anything else in life!)
We can all sit here, listen to the news, and feel bad for ourselves because we were born in a generation and in a city where the average home is $700,000+. OR we can listen to these news, get motivated, get in touch with a good Realtor (call me), a financial advisor, and set up a home ownership plan. AKA, prepare to work your butt off, and give up the $10 lattes.
YES! Through hard work, discipline, and with the right team around you, you as millennial can buy a property in the GTA.
Want to know how I know? Because I help millennials to buy their first home all the time. While some do receive help from their parents, MANY do it all on their own (I am one of them…! Yes, I am a millennial by definition ;))
What types of properties are these millennials buying you may ask?
Well, no-one ever said your first home had to be a 4 bedroom, double garage home, with a pool sized backyard.
I am finding three groups of millennial buyers:
- Largest group. Those who are willing to compromise size for proximity to amenities and work. These are mostly young professionals who work Downtown Toronto or in the inner GTA, and are happy to be living in a 450 to 550 square foot condo apartment that they can call their very own.
- The other big group, are willing to commute to work, to have more space. These buyers are buying in York Region, Halton Region, Durham Region, where they can buy a larger condo or a small house.
- A smaller but resourceful group, Millennial investors. This is a group that is not willing to leave the city and proximity to work (so they continue to rent or live at home), this group does not have enough money for a condo in the city, but understands the importance of getting in the market at an early age. These young professionals approach me to help them identify good investment opportunities in the Golden Horseshoe in places such as Oshawa, Hamilton, St. Catharines, and Waterloo. This same group of resourceful millennials are also starting to use a joint venture model, where two or three friends pool in their money together to buy their first investment property.
Like the article mentioned, this shows that “Homeownership remains a coveted goal for many Canadians.” It also shows that millennials understand the importance of homeownership in the long run, and that they understand that Real Estate is a good long term investment.
While I work in the market day in and day out, and I can feel out the trends, and attitudes of the market, it is nice to see statistical data that shows that a large portion of Millennials plan on purchasing their first property in the next two years.
This is good news for the economy. This is good news for everyone.
As always, any Real Estate questions, I’m happy to help 🙂
(647) 500 – 4596