For countless months the Vancouver real estate market has been booming, yet this market has been arguably reserved for the wealthy. Consequently, there has been a large portion of the Lower Mainland’s population left out in terms of purchasing real estate.
Research put forth by Vancity has determined that 61% of Vancouver millennials (aged 18 - 24), are still living at home in addition to having the lowest discretionary income in the country - disputing the longstanding argument that millennials have an inability to effectively save their money. Despite the fact that Vancouver led Canada in job creation in April of 2016 and the unemployment rate has dropped significantly, a frustrating truth is realized.
National Bank Financial put forth that a down payment on an average Vancouver property equates to approximately 9 years of saving. Because of this, it leads individuals to wonder whether it is worth it to stay in the Vancouver area. This is why we see an upswing of young professionals and recent graduates spending a few years in a rental property to gain work experience, before relocating to a more affordable housing market.
In the Vancouver area, it is more cost effective for millennials to consider purchasing a townhouse or condominium to increase their discretionary income. The issue being, there is a distinct lack of these types of properties available to those who cannot afford to purchase a home.
A poll administered by CIBC discovered that 75% of Canadians believe that entering the housing market is more difficult for millennials than it was for previous generations. Additionally, something should be done to ease the financial burden millennials face in buying a home.