Millennial Home Buyers
Can you guess how many baby boomers are in Canada? Does 3.2 million sound about right?
Times that by 3 and now we’re talking… There are 9.6 million boomers, all with children of their own and the two generations making up over half the total population of Canada. It’s clear that the millennial’s, a generation group born anywhere from the early 80’s to the ‘00s make up as many as 9 million people living in Canada, can’t be ignored. Many millennial’s are at a point of buying their first homes, and the attention is especially directed towards Canada’s metropolitan cities – Vancouver, Calgary, Montreal & Toronto.
The millennial housing demand is increasing to the point of breaking the boomers real estate demand records. Although the demand is high, supply is not.
According to CREA, the Baby Boomers, majority of whom are in their 50s, are out of the “move-up” years, but still a long way from downsizing the family home. These homes remain off the market to anxious buyers, and with the increasing millennial demand we are seeing a growing tension in the housing market, as the inventory and selection just isn’t available to the younger generation.
Luckily, lifestyle is very important to the millennial generation, and having easy access to inner city shops, restaurants and parks and more is appetizing enough to keep the interest alive in trendy apartments and condos for awhile. Many of the big cities are building up instead of out to keep the people close to their jobs, and near downtown.
What’s hot on the real estate menu for Millenials?
Apartments Having a small but trendy pad is all the rage for both pre and post university people. The idea of living in a young community surrounded by unique one-off stores and coffee shops seems to fit the ticket for a lot of millenials who are looking to feel like they are part of their own community, functioning heavily on the same outlets as their neighbours. Buying an apartment means not only enjoying the lifestyle but feeling financially flexible with smaller mortgage payments.
Condos The condo market used to be driven by downsizers looking for something convenient. But it’s now driven by affordability. Most millennials don't believe they need the extra space, and buying a condo is the best investment for them because it is typically an asset that can be paid off a lot faster than a house. Not to mention that this generation of renters know that there can be a lot of potential income in renting out a space; which leads us into...
Upper & Lower Level Pads Making larger houses more affordable by the inclusion of basement units and other rental units within the home is a growing trend. We are seeing fewer homeowners and more landlords, where the typical millennial homebuyer rents out half the property, and is using rental income to help with their mortgage.
Many apartment, townhouses, and condos are under construction in urban areas to create a new way to deal with the influx of millennial shoppers. This may be a good way to create a short term solution for those in college and university. Once more Millennials start having families of their own, a 2 bedroom apartment probably won’t cut it anymore. The ‘Silent Generation’ (born between 1923 – 1944) are most likely downsizing and creating room in the housing market for the younger generational needs, but will it keep up with the demand?
Navigating through the real estate market as a first time buyer can be very difficult. That’s why I am here to help! Let’s see what you qualify to buy and we’ll talk options.