Amid predictions for a modest 2016, home prices in many Canadian markets continue to soar, and much of the growth is coming from an unlikely source: millennials. Canadians ages 16 to 36 are over nine million strong; they’re now the largest cohort in our workforce, and they’re entering their prime home-buying years.
Frank Magliocco, Canadian real estate lead at PwC, does not expect high demand—and related house price increases—to ease up any time soon in hot urban markets like Vancouver and Toronto. He points to growth in condos, rental apartments and mixed-use urban developments as proof that young buyers don’t fear big mortgages (or big leases): “In large part, [growth] is driven by millennials wanting to go to where the action is.”
Here’s why young buyers are able to get into the market—and who stands to gain from it.
These are big numbers, but they don’t scare fledgling buyers, perhaps because young Canadians are, on average, wealthier than previous generations.
ï¿¼Still, we know wealth isn’t distributed equally, so many are finding different ways to own a home
ï¿¼As a result, more than half
ï¿¼ï¿¼This is set to benefit many who sell, build and manage homes—especially those who work in high-density urban markets
ï¿¼ï¿¼Top business prospects in real estate:
- Private local owners and developers
- Institutional owners and developers
- Investment managers
- Homebuilding and residential land developers
Sources: PwC; Canadian Real Estate Association; BMO Bank of Montreal; Pollara Strategic Insights; TD Economics; Generation Squeeze; and Department of Finance Canada
MORE ON MILLENNIAL CONSUMERS:
- Where Home May Soon Be for Many Millennials »
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- A Simple Way to Make a Brand Seem Authentic »
- How to Appeal to Moneyed Millennial Consumers »
Will your company benefit from the new generation of home buyers? What other services and products will new property owners need? Let us know by commenting below.