As if people needed another reason to love Canada. A recent report released by RBC Economic Research revealed that ownership rates among millennial Canadians were higher compared to other countries.
The report found that more than 40% of homes in Canada were owned by people younger than 35. This is higher than many other countries. Comparatively, in the US around 34.5 in% of homes are owned by people under that age.
Calgary appears to be the best Canadian city for young buyers. They have the highest percentage of millennial homeowners at 50.6%. Victoria had the lowest percentage meanwhile, at 27.4%.
Canada’s largest real estate markets, Toronto and Vancouver, are highly appealing to young buyers despite high buyers. A recent survey by Altus Group found that first-time buyers, many of them young millennials, purchased around half of the homes in Toronto. There are still affordability issues in these large cities though.
RBC states the long-term solution is to increase real estate supply. “What millennials in Vancouver and Toronto really need is more inventory of homes they can afford, and a better mix of housing options — be it to own or rent,” the report read. “Solving the supply issue isn’t the federal government’s responsibility alone but requires a concerted effort across all levels of government.”
In order to improve affordability, and increase inventory, banks and other real estate professionals are calling for the government to remove regulatory barriers and reevaluate mortgage stress test regulations.
The government knows that low vacancy rates and affordability are top concerns for citizens. Finance Minister Bill Moreau is looking into making homebuying more affordable, especially for young buyers.
While Canada is faring better for millennial home buyers than other countries there is still room for improvement. Real estate is vital to a thriving national economy. The good news is that despite a limited supply and high prices, Canada’s real estate is booming for all generations!