The Vancouver real estate market is comparatively relentless when it transpires to the young and lower income buyer. One of the tremendous hits by home prices is the millennials, those aged 23 to 38 who are missing out on the market. People are living to ripe old ages, which in turn keep their homeownership off the market.
Here are some of the most authoritative facts affecting millennials and the trends which are changing their idea of home ownership.
- The Age Of First-Time Home Buyers Has Risen: Today the average age for a first-time home buyer is 36, much elevated than generation before. Most homeowners today were just 30 when they brought their homes. In Vancouver, millennials have a twofold jinx affecting their home buying abilities. It takes them extensive time to save for a home due to towering prices, and the pay have not grown much through the years of employment
- Parents Are Helping With Purchases: According to the BC Notaries Association, about 90% of the first time home buyers in BC were shoplifted or were provided with the money from their parents so that they could qualify for the mortgage. This has a lot to do with the stress test instigated by the federal government to make it furthermore gruelling for buyers to qualify for a mortgage. Millennials have limited equity due to salary stagnation, their parents are the bank of choice today, at least when it comes to raising money for their down payments.
- To Move Or Not To Move: Many millennials have to choose whether they stick to Vancouver or move to a more affordable city. If they are not inclined to give up the urban lifestyle they are used to, surprisingly Toronto provides a sparkle of hope. The price to income ratio is a one-third as compared to Vancouver and it has seen plenty of job growth as well.
Multi Generational Living Saving Days: According to the Millennial Report, one thing that might be saving millennials from going broke, in the meantime they are also reducing their need to buy a home, in a multi-generational living. It has become a trend amongst the millennials that either they stay with their parents or they should move back to their parents house.