Alot of millennials now faced with near-zero discretionary spending are now saying they’re considering giving up on the prolonged – and unfair to them – market insanity and are increasingly deciding to leave Vancouver…
Will most Millennials mostly wind up, like birds in the trees, in downtown condo high-rises? ( Considering Vancouver & Toronto mainly; and secondly Montreal & Calgary )
Living with mom & dad; when bearable, is a popular option for Millennials in light of the skyrocketed home prices in the Vancouver and Toronto areas.
According to a recent “Vancity” poll, 60% of respondents between 18 & 24 stated they are still living in their root family room, while 22% of those between 25 & 35 have yet to rent of buy elsewhere. Unaffordable home ownership and unreasonable rents, and student loans, and average insufficient salaries, were recorded as the major impediments.
Owning a home is now rapidly replacing retirement funds; even boomer retirees are now having to get part-time jobs to supplement themselves!
Mothers & fathers are realizing staying in the nest longer is the only way their sons and daughters can sufficiency get ahead financially in order to one day get into a condo. The day and age when people go to work at the same place for 40 years, retire, and then get a watch and pension is gone.
Renting is often a undesirable option. When you look at renting a condo that is just a waste of money. If somebody can save up and have that as an advantage, why not? However Millennials on the average now think it will take them about 10 years to start to achieve the Canadian Dream. And if a couple wants to have two kids, a condo downtown is really not going to work for a variety of reasons.
At a certain point,there is going ot be some sort of significant correction. The correction may or may not be severe – only time will tell . It probably won’t be as severe as what happened in the United States in 2008, but it could be a non-trivial correction.
While that will hurt people who just got into the market, it could be great news for Millennials hoping to break in. Only time will tell, we will have to wait and see.
One growing trend seems to be making larger houses more affordable by the immediate inclusion of basement units and/or other rental rooms/units within the home. Then a millennial is no longer just a homeowner, they also become a landlord on that property.
Millennials in ways are not different from the former generation – home ownership, saving for their children’s education are still their average top priorities. They just can’t afford to save for retirement.
For Gen Y, they believed that they would achieve home ownership. They are still very eager about achieving that goal at some point in their lifetime,
What we have seen is that average home price-tags across the country have certainly increased while income, of course, hasn’t increased in in parallel.
Millennial home ownership will be difficult for most, but not impossible. However, they just can’t have that 3K sqt house immediately. They’re going to have to establish themselves around the outskirts of town first.
What do you and your colleagues across Canada think? Please forward to others and let us know. We’d love to hear ( contact@realestateleads.ca ) from real estate agents and also any Canadian citizens.
