Millennials? delicate balancing act between education and ownership
by Ephraim Vecina
Canadian Real Estate Wealth
Canadian members of Generation Y still have multiple options for their desired homes despite benchmark prices for detached properties (as of July) sitting at around $1.2 million in Toronto and at nearly $1.6 million in Vancouver, analysts stated.
“It’s obviously stage of life, as needs change, your requirement for a home changes,” Ontario Real Estate Association (OREA) director of marketing communications Fahed Malik told the Financial Post. “There is a need for a larger home and a detached home can give you that practicality.”
A recent survey by the OREA found that approximately 51 per cent of millennials are intending to buy a detached property within the next two years. Meanwhile, 28 per cent said that they would go for condo units, and 18 per cent expressed a preference for semi-detached homes.
However, observers said that while getting a detached home is still possible, doing so would mean giving up the advantages afforded by other home types—in particular, proximity to work for those employed deeper within the city.
“Living near the city’s downtown means downsizing your expectations,” the Financial Post’s Garry Marr wrote in his analysis.
“The desire to have the dog, the garage and 2.4 kids is strong no matter what generation you are talking about,” Re/Max Western Canada regional executive Elton Ash said. “I just did a road trip in Manitoba and visited a community 35 kilometres north of Winnipeg and the lot cost was $45,000. But it’s the same result as you move out of city cores, prices to get cheaper and that’s why bedroom communities are getting more popular.”
In Vancouver, an attached home like a townhouse unit or a row house is currently going for an average of $669,000, which might represent a more realistic option for millennials who do not want to contend with long distances to and from work.
Another especially important point, according to Environics Analytics demographer Doug Norris, is that most of the supply in the detached market is cornered by baby boomers.
“They’re not moving until [age] 75 or so,” Norris said.
Copyright © 2016 Key Media Pty Ltd