Ryerson University’s Centre for Urban Research and Land Development recently released a report which found millennials like their parents haven’t abandoned their dreams of home ownership although some may have trouble giving up their smashed avocados on toast to achieve that real estate fantasy.
Based on extensive demographic research and statistical analysis, the report finds millennials in the Greater Toronto and Hamilton Area are on track to follow in their parents’ footsteps and become homeowners, but they’re going to face steep prices and a potential housing shortage.
The current rate of home ownership among millennials is 40 per cent, and that is expected to grow to 60 per cent by 2026, according to the report.
A total of 500,000 new millennial households will be formed over the next decade, the report says, and of that number, 350,000 are expected to become homeowners.
The report also states that the differences between millennials and past generations tend to be most pronounced while millennials are in their 20s.
The report, which defines millennials as anyone born between 1981 and 2001, finds the average age of millennials in the region is 26 .
But as millennials age into their early 30s, the report predicts they will start to catch up on many of the family goals they’ve been putting off.
When it comes to their living situation, millennials tend to aspire to home ownership rather than renting, and they prefer buying “ground-related homes” — single homes, semi-detached homes or townhomes — rather than living in high-rise units.
The report predicts a reversal of the recent trend of millennials moving downtown and living in condos, toward a move to the suburbs. Economic reality and not preference seems to be shaping their decisions.
The report predicts the region will be short 70,000 ground-related housing units over the next 10 years. According to the report, this will cause “continued upward pressure on prices over the long-term.”
But despite these reports the grim reality is that the dream of home ownership will fade for a large segment of millennials who will rationalise their decision to rent in the future or move from the big city into smaller and less fussy towns.