Our real estate market and the Millenials? Let's be ready and listen to them today.

Thursday, October 18, 2018 Written by Emmanuelle in General

On October 2nd, 2018 according to a new poll on behalf of the Building Industry and Land Development Association (BILD) and the Toronto Real Estate Board (TREB), more than nine in ten millennials are concerned people their age won’t be able to afford to buy a home in the GTA. That number rises to 94 per cent for millennials aged 18-34.
"730,000 millennials living in the Greater Toronto and Hamilton Area (GTA) may be planning to move on from living in their parents’ homes and from sharing a dwelling with roommates in the next ten years, potentially creating 500,000 new households,” said Dave Wilkes, BILD president and CEO.

Another study made by Point2Home (August 2018) found that 66 per cent of the Millennials interested in purchasing a home would like to do so within one year. However, almost half of those surveyed (aged between 25 and 38 years old) have savings significantly under the national average down payment of $25,000.

Worse, 12 per cent of the Millennials admit that they haven’t managed to set aside anything at all.

For instance, in Toronto, the average down payment is a little over $62,000, but 70 per cent of Millennials assume they will need less than $50,000

  • In Toronto, 70% of Millennials who participated in the survey believe they will need less than $50,000 for a down payment.
  • If they set aside 20 per cent of their income every month, Millennials in Toronto have much better prospects than their Vancouver counterpart. It would take those under five years to save enough for a down payment. For a home in Vancouver, they’d need about 20 years.

A few facts for the decisions makers:

  • 60 per cent of GTA residents say they value a neighbourhood that is walkable and bikeable,
  • proximity to shopping, entertainment and government services.
  • access to convenient transit (56 per cent) and proximity to work and school (54 per cent).

To finish on a positive note: millennials are the most optimistic group believing that the GTA is well prepared to provide housing for the number of new residents that settle here every year.

Let us try not to disappoint them.

Source :L'Express de Toronto, 9 Octobre 2018 by Emmanuelle Meyer