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All About Home Ownership: Millennials

Being a millennial means you’re not only blessed with youth (for now!), but it also means that you’re going to go through quite a bit of trouble when looking to purchase a home in the future. Living in Toronto is one of those things that people take seriously. The cost is high, but the amount of culture and other types of richness that you experience is simply intriguing. It’s what brings so many people to the city, after all. With that being said, Millennials need to curb their expectations when it comes to living in a single-family, low-rise home; there simply isn’t enough land in place to allow that. If you could build entire homes on top of one another, I’m sure they’d allow it! BMO conducted a survey during the month of April, and it told us that around 70% of Millennials hold owning a home as quite important. Although it’s important to them, they are still willing to wait until they can afford one they’d enjoy.

It might not just be a matter of waiting until you can afford it, as opposed to just adjusting your expectations in general. When land values are rising, you need to curb your enthusiasm – property is one of those investments that requires a lot of money. Frank Clayton, who is a senior researcher at the Centre for Urban Research and Land Development (Ryerson University) stated that: “This is a ‘905 problem’”. The city and surrounding areas just don’t have the sheer number of housing units needed to account for everybody, especially Millennials. Some researchers argue that laneway housing in specific neighbourhoods could be the way to save space, but only time will tell how successful we are able to be with our endeavours. This is a boom, as opposed to a “bubble” – you can expect these prices to stick around for quite some time. If you’re serious about living in a low-rise home, you may have to move around the country a little bit. In order to get serious about your property needs, you’ve got to understand the industry at its core. Millennials are pretty much forgotten about when it comes to purchasing/owning a home, because it’s so far out of reach for most. If you start saving up now (and understanding the real estate market), you should still be in pretty good hands.