Home ownership 'virtually impossible' for millennials in 7 Canadian cities
While Vancouver is well-known as an expensive place for millennials to put down home ownership roots, a new report from Point2 Homes has found that this issue isn’t just a Vancouver problem.
In fact, the report found that that are here are seven markets across the country where it is “virtually impossible” for a millennial couple to save for a down payment.
“The contrast between how much money millennials think they will need and the actual down payment amount is striking in several cities,” the report said. “In some of the most popular and most expensive business hubs in the nation, most millennials are in for a big surprise.”
Point2 Homes graph
Although the minimum down payment is close to $300,000 in Vancouver, the report found that 80% of millenials who responded to the survey respondents believe they will need under $100,000.
“There is also a large gap between expectations and reality in Toronto, the report noted.”Here, the average down payment is a little over $62,000, but 70% of Millennials estimate they will need under $50,000.”
According to the report, millennials would need between 14 to 35 years to save for a down payment in these markets across the country:
- West Vancouver, BC
- Vancouver, BC
- North Vancouver, BC
- Burnaby, BC
- Oakville, ON
- Richmond Hill, ON
- Richmond, BC
Some small comfort
That being said, the down payment requirements in the nation’s biggest cities “vary considerably. This means buying property in some of these real estate markets is somewhat attainable, while other markets are highly unattainable for Millennials.”
Vancouver, the eighth-most populous city in the country, is the harshest on its aspiring homeowners: young people who want to settle down here are looking at almost 20 years’ worth of savings, assuming they can set aside 20% of their income after paying the rent and covering other necessities in the generally expensive city.
“The other big urban centres don’t come even close to this overwhelming time span,” the report said. “Toronto might also discourage a fair share of Millennials attempting to find their dream home in this city, but it is more than accessible by comparison: in Canada’s largest business centre, it would take four and a half years to save for a down payment.
Mississauga and Brampton, ON, follow suit, with more encouraging three-and-a-half years. Edmonton, AB (11 months), Winnipeg, MB (13 months) and Ottawa, ON (13 months), close this ranking with an even more positive outlook for prospective young homebuyers.