Who Is Going To Make Big Changes In The Housing Market?
When you are in the market for buying a home you are basically up against other potential buyers as well. It does help to know who your competitive buyers may be. It used to be that it was the baby boomers that were at the head of the house buying but the consensus is that this is going to be the biggest change in the future when it comes to the housing market.
The experts in real estate believe that it is going to be the Millennials who are going to be the major home buyers in the upcoming future. This may come as a surprise to many, with so many young people being out of work and not being able to follow their chosen careers. However, it is still believed that they have the potential to be the biggest home buyers that ever existed.
The average age of 15 to 34 is what makes up one quarter of the population this is the age group that is just entering into the desire to purchase a home. It is a believed that Toronto and Vancouver hold the largest segments of these homebuyers because of the potential for job growth in these two cities.
Currently those that do have stable employment have started to look at buying starter condos and single family homes. As always it will still come down to affordability when it comes to house buying. While it is suspected that the Millennials are going to be the biggest real estate buyers there is still not a lot a data collected concerning their intentions for buying.
Part of this premise is being based on the rental data for the GTA area. It indicates that Millennials have a willingness to pay large amounts of money for rent. They tend to go for the popular and modern condos where the average rent is $1,800 a month. It was through their willingness to do this that escalated the condo acceleration growth in the downtown area of Toronto. It is estimated that the vacancy rate remains at less than 2%.
Condo builders are keeping in sight the possibility that rental units may be the bigger market for the Millennials who some experts believe that this age group will continue to rent for life and not actually purchase. It is surmised that Millennials put their attention on their lifestyle and job rather than owning a home and a car.
So there are two thoughts on what is going to happen with the housing market as far as the Toronto area goes. No doubt some of the interest is spurred with a current lottery that gives a participant a chance to own a condo townhouse if their name is drawn from the entries.
In general young people are looking more towards the townhouses and semi detached houses rather than the detached house because of the price ticket on the detached homes in the city that most go for over $1 million. This doesn’t rule out that some of the Millennials will look at the rural areas as well.