Real estate prices in the GTA may be at an all-time high, but a surprising number of young homeowners who have broken into the market own not just one but multiple properties.
A new report from Royal LePage found that 18% of GTA homeowners aged 18 to 35 currently own more than one home. Surprisingly, this is a higher percentage than those over the age of 35, of whom just 11% own multiple properties.
“Young buyers are looking to capitalize on the real estate market by investing in a property that will appreciate over time,” said Royal LePage Signature Realty sales representative Karen Millar. “I have many younger clients who have purchased condos or smaller homes for as little as $300,000 outside of Toronto, in areas like Guelph and London, where the rental market is very active among students.”
Of those GTA residents who own more than one property, 49% said they are using their secondary property solely for rental income. Another 15% said they were renting out their property some of the time, and 27% said they were not renting it out at all.
“Parents of students in Ontario’s university towns are also taking advantage of the local rental market, purchasing a property — often times with multiple units — for their children to stay in while studying and also as a source of rental income from other students,” Millar said.
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Phil Soper, CEO of Royal LePage, says that these entrepreneurial landlords are essential to Canada’s rental housing supply.
“While some secondary properties are used for recreational purposes, many of these homes are foundational to Canada’s critical supply of rental housing,” Soper said. “Entrepreneurial landlords supply housing to the thirty per cent of Canadians who rent, be they new immigrants, students, young people entering the labour force, or those who cannot or choose not to own their home.”