Gen-Y is massive cohort which is overwhelming interested in breaking in real estate market but this will impact on mortgage and affordable challenges that rules them. Phil Soper, CEO and President, Royal LePage said that facing challenges with baby boomer parents that never encountered at peak millennials that confronted significant obstacles that vary where they live.
While finding employment in largest urban markets, Vancouver and Toronto are easily to compare with other areas of Canada, buyers face high values of homes and limited inventory in all these regions, where prices are very affordable, job market is more uncertain.
Housing demand has pent up from millennials is very enormous with one-third of demographic who own property and overwhelming desiring to be the homeowners.
According to report from Royal LePage, number of Canadians are aged between 25-30 are being projected to increase by 17% in year 2021 as compared to 2016. Soper said that whether they choose to rent or buy, the peak millennials will give shape to housing market due to the sheer volume. Soper also said that they expect demand from demographic to put an additional pressure on the entry level of investing property and housing market which is being used to supplement limited inventory of rental buildings.
Desire to own a home among Canadians is with Royal LePage’s survey which find that 87% of the Canadian aged between 25-30 who believe that homeownership is very good investment.
69% of homes in next 5 years and 57% surveyed that they believe that they will be able to afford.
Despite of all these challenges which face millennials who plan to enter real estate housing market, Soper suggested that there are some of the developmental strategies which could help to meet the demand.
Soper said that peak millennials are increasingly inventive in quest for the homeownership, careful attention to the urban planning help to alleviate some of the constraints. Focusing on the vertical living, ease of supply limitations, affordable condos in urban markets, appealing solutions to the young buyers who search affordable property makes impact on Canadian real estate market.