Who’s buying homes? Not too many Millennials
Low income growth among Millennial households has created a significant "affordability gap" in relation to house prices in urban Canada. While price increases have been more subdued in most markets in recent years, this continues unabated in two important centres –Toronto and Vancouver – due to their strong economic performance coupled with a chronic undersupply of the type of ground-oriented homes most sought after by young families.
There is a growing risk that lower rates of home ownership among Millennials could affect the entire economy. Stagnant incomes and high home prices mean an increasing number of well-educated young people and families are being ‘locked-out’ of home ownership. A shrinking pool of first-time Millennial home buyers can become a problem for current homeowners wanting to sell.