Millennials Set to Create Change in Real Estate Market

Millennials have the potential to become the largest home-buying group in history, even bigger than their baby boomer parents. The first wave of millennials ranging from age 15 to 34 years make up approximately one quarter of Canada’s population. They are just moving into their prime home-buying years. Many reside in Toronto and Vancouver, where job growth has become a major magnet.

Those who have been able to find a dependable job other than contract work have been helping drive competition for single-family homes and starter condos.

Principal Greater Toronto Market Analyst for Canada Mortgage and Housing Corporation, Dana, Senagama stated that affordability will play a major factor in who buys what. She also said that millennials are going to be a force to be reckoned with over the next decade, especially as they move into their prime child-rearing years and will require more space.

CMHC along with TREB have little data about the buying intentions and plans of millennials. TREB is set to launch surveys of the sector this year. So far, millennials have impacted the GTA rental sector as they are willing to pay a large amount of rent , on average about $1,800 a month for sky high condos near their workplace.

According to a real estate brokerage who conducted research on the top Toronto neighbourhoods for millennials to live in, 13 of the 15 neighbourhoods were in prime locations near the heart of the city except for the Willowdale East (Yonge and Finch) and York University Area. The brokerage used information from Statistics Canada 2011 Census Data and Toronto Real Estate Board data as of October 2015.

Percentage of Residents Who Are Millennials:

1. Bay St. corridor: 49 per cent Median purchase price of one-bedroom condo: $418,328 Median rental price of condo: $1,828

2. Waterfront-downtown entertainment district: 49 per cent Median purchase price of one-bedroom condo: $360,492 Median rental price of condo: $1,666

3. Niagara St. neighbourhood: 48 per cent Median purchase price of one-bedroom condo: $341,264 Median rental price of condo: $1,683

4. Church-Yonge corridor near Wellesley: 44 per cent Median purchase price of one-bedroom condo: $370,339 Median rental price of condo: $1,750

5. University of Toronto-Harbord: 42 per cent Median purchase price of one-bedroom condo: $412,000 Median rental price of condo: $1,700

6. Palmerston-Little Italy: 39 per cent Median purchase price of one-bedroom condo: $378,450 Median rental price of condo: $1,850

7. Kensington-Chinatown: 38 per cent Median purchase price of one-bedroom condo: $371,000 Median rental price of condo: $1,750

8. Yonge-Eglinton: 38 per cent Median purchase price of one-bedroom condo: $392,000 Median rental price of condo: $1,750

9. Bloor-Sherbourne: 34 per cent Median purchase price of one-bedroom condo: $340,100 Median rental price of condo: $1,650

10. Trinity-Bellwoods: 33 per cent Median purchase price of one-bedroom condo: $402,450 Median rental price of condo: $1,700

Reference: The Toronto Star

http://www.thestar.com/…/2016/01/02/millennials-move-up.html