Buying a home is a huge investment that many people in their lifetime hope to achieve.
But for millennials (The millennial generation is the generation of children born between 1982 and 2002) that milestone has become quite a bit harder to come by. According to a census data released on October 25 by Statistics Canada, only 50.2 per cent of 30-year-olds were homeowners in 2016, compared to 55.5 per cent in 1981.
And when they do buy, it’s less likely that property will be a classic single detached home, 35 per cent of 30-year-olds lived in single detached homes in 2016, compared to 44.4 per cent of their 1981 counterparts.
Millennials are being driven to the condo market because it’s what most of them can afford, the report also found that the number of condo dwellers was up across the board in 2016, with 13.3 per cent or almost 1.9 million households living in condos.
The demand in condo living can also be seen with new built homes, that supply sat at 3,036, while the supply of new-built condos came in at 18,280.
According to Zoocasa managing editor Penelope Graham attributes the lack of growth in ownership to a levelling off of wage growth. From 2001 to 2011, average hourly wages rose from 22 dollars-per-hour to 24 dollars-per-hour, while in the same decade, the average house price rose from $251,508 to $352,581.
As for now most millennials can just afford to buy condos or to rent properties but as for the future it all depends on the younger generation:
Statistics Canada mentions in its report, “Future trends will be affected by… whether younger generations rent or own a home.”
What do you think of millennials not being able to afford single detached homes?