Housing demand set to grow for Millennials and Baby Boomers
It’s estimated that 9.6 million baby boomers are in Canada today and they have long been the segment to pay attention to. But there is another demographic as big as – if not even bigger than – the Boomers: the Millennials, or the Gen Ys.
This group has not been clearly defined yet, with no standard criteria for categorizing them. They are born anywhere from the early 1980s to the early 2000s. At any rate, this age bracket has as many as 7 million to 9.1 million people living in Canada – a huge demographic with a huge influence on trends.
Millennial housing demand is growing as they look to buy their first homes, especially in Toronto and Vancouver – Canada’s biggest cities. They have the potential to be the biggest home buying group in history — even bigger than their baby boomer parents.
According to CREA, the Baby Boomers, the majority of whom are in their 50s, are out of their move-up years, but still a long way from downsizing the family home. A large chunk of the housing stock remains occupied by Boomers who will likely be keeping their home off the market for some time yet.
For now, it’s members of the Greatest and Silent generations (people over 70) who are most likely downsizing.
With Millennials coming into their homeownership years well before their Boomer parents are likely to downsize, the demand for homes will continue to grow while inventory remains flat.
If you are a first time buyer trying to climb the property ladder, talk to me and I can help you find the mortgage product that will suit your situation.