The real estate industry is finally seeing millennials reach home-buying age, CBC reports.
Phil Soper, Royal LePage President and CEO, is closely watching the oldest millennial cohort, born between 1987 and 1993; he says they’re “finally fleeing the nest.”
Soper firmly believes the elder millennials will be a formidable participant in the real estate market this year. This younger age group is beginning to demand its place in the housing market, and Soper predicts they will continue to motivate an upward trend in housing scarcity.
As the millennial mob grows and gains more purchasing power, it’s expected that the housing demand will reach a peak of sorts, especially when combined with the influx of newcomers who tend to settle in urban, developed areas of the country.
Ontario and British Columbia are likely to see the most demand thanks to their “strong economies and job markets.”
Industry watchdogs “predict demand and prices for condominiums in Toronto will continue to rise in 2018.” Last month in Toronto, the average price of a condo was up 14.1% to $532, 700, compared to a year ago.
Toronto realtor Desmond Brown explains that the “condo in Toronto has become the starter home.”
And yet, it’s doubtful that any millennial born between 1987 and 1993 grew up in a condo the way that young kids today. Gone are the days of scenic community-centred apartment complexes; many have been buried to make way for the new condo community that centres on independence and estrangement.
Brown is calling Canada “a condo nation” and compares our lived reality to other advanced nations worldwide. He also mentions that the parents of millennials will be looking to downsize, eventually entering the condo market alongside their adult children.
Brown believes, however, that these “retiring Baby Boomers” will be looking for larger, more lavish suites.