Many of today’s Millennials are anxious to get into the real estate market. But prices are so high that the millennial home buyers may find it necessary to be creative in order to accomplish that purpose.
Millennials are the largest demographic in Canada and their numbers are now surpassing baby boomers. They have great influence over the economy and culture. Millennials are very quickly becoming the driving force in the real estate market.
Millennials have very specific expectations for both their homes and neighbourhoods. They want good appliances and fixtures in a well finished home. They are unlikely to have enough income to do renovations after the purchase of a home. They would prefer the location of their home to be in a good, safe, neighborhood, walking distance to work or transit.
Due to the high price of homes, millennials have had to become very creative in order to have any opportunity to enter the market.
Multi-generational living is becoming more common than ever. Because buying a home is so costly, many Millennials are living at home for longer. At times they are living at home with their spouse and children.
Aging parents are sometimes making the decision to allow their adult children to buy into the family home while they reside in a basement suite, carriage house or laneway home.
Upon retirement, many aging parents are having the growing young family take over the larger portion of the main house. The parents then replace the younger generation in the basement, carriage house or laneway home. This allows for the grandparents to assist with the raising of the children and sharing of expenses.
This arrangement can be mutually beneficial to both the young family as well as elderly parents that may need care and assistance.
Millennials may decide on co-ownership. Relatives or close friends buy a home together. This enables them to invest in a larger home than they would be able to afford to buy individually or as couples.
Other Millennials are meeting monthly mortgage payments by renting out part of their space to roommates or on platforms such as Airbnb.
Millennials are very savvy about the value of investing in real estate and impatient about “getting it done.” Sharing a home will help them save money and generate income. It may be a compromise that is well worth making.
Builders and Developers Getting On-Board
The new trend of multi-generational living means that builders and developers need to address the new demands. They need to provide space-sharing, laneway homes, main floor master bedrooms, and fully finished basement suites.
Millennials want condos with two separated master bedrooms if possible, to share accommodation. Stainless-steel appliances, smart thermostats and USB charging ports are also in high demand.
Millennial buyers like to have co-working spaces, an on premise gym, bike storage, urban garden and a location near enough to walk to transit. Pet friendly, of course.
Millennials are the most educated generation in history and have higher income potential than previous generations of buyers. However, with the present economy often pricing them out of the market, millennials may be forced to think outside the box in order to jump in!