Are Millennials when it comes to renting or owning a home in a city like Toronto or Calgary, really from home ownership or is this a classic case of affordability?
Home ownership at Millennials seems to have been compared to previous generations. Some have attributed this trend to the resistance of this cohort to the possession of items with a large ticket versus experience-based purchases. Others determine that the cause is affordability.
So what should we do about a recent article stating that many young Calgars choose to rent versus own, despite the fact that they have the money to enter the real estate ladder?
We have asked brokers from Calgary and Toronto for their observations based on market activity. It is not surprising that the affordability (or the lack thereof) seems to be the main driver for Millennials who choose to rent instead of buying.
Lowell Martens, Broker or Record, RE / MAX Real Estate Mountain View in Calgary says Millennials appreciate the idea of home ownership. "Most of them seem to want to buy a house, but due to lack of money some can have no choice but to wait … Their long-term goal is to have a type of house in the future."
Martens adds: "I feel in cities like Vancouver, a Millennial has no choice but to rent only because of the costs."
So, what about Toronto – the second most expensive property market in Canada?
"Young people do not choose to rent in Toronto, they only rent when they can not buy," says Jamie Johnston, broker of record / owner, RE / MAX Condos Plus Corp. in Toronto.
Indeed, according to the RE / MAX 2018 Housing Market Outlook the intention is certain. Seventy-eight percent of Albertans and 68 percent of the ontario's are homeowners. This is higher than the national average of 66 percent. In addition, while only 45 percent of Canadian Millennials currently have homes, 72 percent of millennials plan to buy in the next five years.