Property sellers, builders and managers are set to cash in as members of Generation Y finally find the money for a mortgage down payment
Amid predictions for a modest 2016, home prices in many Canadian markets continue to soar, and much of the growth is coming from an unlikely source: millennials. Canadians ages 16 to 36 are over nine million strong; they’re now the largest cohort in our workforce, and they’re entering their prime home-buying years.
Frank Magliocco, Canadian real estate lead at PwC, does not expect high demand—and related house price increases—to ease up any time soon in hot urban markets like Vancouver and Toronto. He points to growth in condos, rental apartments and mixed-use urban developments as proof that young buyers don’t fear big mortgages (or big leases): “In large part, [growth] is driven by millennials wanting to go to where the action is.”
Here’s why young buyers are able to get into the market—and who stands to gain from it.
79% of millennials still believe owning a home is attainable according to a 2016 poll, despite mushrooming prices raising barriers for first-time buyers