26 July, 2018 09:45
Photo : Freepik
According to a study conducted by Royal Lepage, the milléniaux have more difficulty to put aside to make a downpayment towards the purchase of a property, and this, throughout all of Canada.
In the Greater Montreal area, these potential buyers must increasingly seek financial support from members of their family to be able to buy a first home.
Given that the estimate of the value of houses increases faster than the critical mass of milléniaux is able to save, many buyers of this segment demographic are waiting on the sidelines of the market in the hope to associate their earnings with those of a potential life partner, or they ask their parents to help them, ” explains David Tardif, broker, real estate agency Royal LePage Altitude.
Royal Lepage attributes the situation to increased competition in the sector, multiple offers and low inventory levels, which led to the rise of prices to a level beyond the means of this age group. In his study, Royal Lepage has focused on the milléniaux of 25 years and more.
Inequalities elsewhere in Canada
The milléniaux also face significant discrepancies in regards to the properties that it can be offered in the large canadian cities. According to Statistics Canada, their median salary is 38 148 $. This generation typically has a threshold budget maximum of 203 246 $ to buy a property.
Royal Lepage also asserts that the purchasing power of milléniaux has been reduced by 16.5 %. This represents in dollar terms a little over $ 40,000. According to the real estate broker, this reduction can be explained in large part by the restrictions put in place by the federal government regarding access to the property.