Posted 2.12.16 @ 0:0
The real estate market is bound to experience a big jolt, courtesy of the millions of millennials who are now entering their settling-down phase. Possibly the biggest home-buying cohort in real estate history, millennials will play a huge role in shaping the future of the real estate market; a behemoth presence that’s starting to be felt in recent years.
A Force to Be Reckoned With
With millennials now moving into their own homes and making real estate investments, where they will end up moving will determine which Canadian cities and suburbs will be the future housing hotspots. About ¼ of all Canadians are 15-34 years old, and right now, they are moving into their prime home-purchasing years. Many are attracted to and/or based at Vancouver and Toronto where job growth is a major magnet but this can change in the future.
At present time, millennials who are gainfully employed are one of the forces driving the competition for single-family homes and starter condos, and we’ve seen just how fast condos are getting picked up as soon as they become available. This trend will continue as millennials enter their child-bearing age in the next 10 years.
The Millennial Impact
The GTA resale market is assessed at a bi-monthly basis by the Toronto Real Estate Board and have recently released their 2015 review for the Toronto real estate market. The review covers some surprising insights but TREB is planning more focused surveys for this year.
What is clear so far is that millennials have a huge impact on GTA’s rental sector because they can afford and are willing to pay a hefty monthly rent that averages at around $1,800. They seem to value location and hence, condos and homes near places of work are in their radar. This is one of the fuels for the recent condo boom in the GTA, especially in the downtown core area.
A Toronto condo these days is inching towards costing $500,000 for resale; a value that is making developers start to go into building rental units in anticipation that the majority of the key market, the millennials, will be renting more than buying. This is in light of the assessment that fewer and fewer of the young market are considering owning a home as an investment and are leaning more towards following jobs and going for locations that offers attractive lifestyles.
Still, with just the 1.5 million millennials in the GTA area, they will surely be making their presence felt whether they go the renting or owning route, even with the changing perception of what defines a home.
As of October 2015, the realty firm RedPin.com have identified the top 15 millennials’ choice Toronto neighbourhoods and found out that 13 out of all of them are sought-after location at the heart of the city. Some of which are: Bay St. Corridor, Waterfront-downtown entertainment district, Niagara St. neighbourhood, Church-Yonge corridor near Wellesley, University of Toronto, Palmerston-Little Italy, Kensington-Chinatown, Yonge-Eglinton, Bloor-Sherbourne, and Trinity-Bellwoods.
Looking for a condo or rental property in Oakville? Then contact us and let us help you find the best home in one of Oakville’s prime neighbourhoods. With amazing history, culture, and attractive options to fit any lifestyle, you will surely love being a part of the Oakville community.