Millennials are fast becoming a “political powerhouse” and affordable housing, in all forms, is high on their agenda. A millennial is defined as someone who is born between 1982 and 2004. Currently, there are 103,325 (31% of the population) millennials living in Markham, with another 12,975 (28% of the population) living in Stouffville.
Housing affordability continues to be a hot topic of conversation amongst millennials. Market research conducted by Abacus Data in April indicated that 51% of Canadians 18-25 felt that making housing more affordable should be a priority for the federal government. For years people said “young people don’t vote”, but during the 2015 federal election, voter turnout among young Canadians increased by nearly 20%, proving that assertion is no longer correct. With the number of peak millennials (ages 25-30) looking to exceed 3 million by 2021 (an increase of 17% from 2016) politicians will be looking to add housing concerns to their electoral platform. By 2019, when the next federal election comes around, there will be more millennials eligible to vote than baby boomers.
Back in August, a national survey was conducted by a major real estate company on housing affordability. The studies found that:
- 35% of millennials already own a home
- 50% were renting
- 14% were still living with their parents
- 57% said they couldn’t afford to buy a home
- 44% said they wouldn’t buy one because of job insecurity
Nearly 50% of those surveyed believed that the new mortgage regulations had affected the type of property they could afford.
- 24% of the people surveyed did not even qualify for a mortgage
When the market was at its peak during April 2017, homes were selling for record-breaking amounts. The federal government then intervened and implemented its “Fair Housing Plan” to cool down the overheated market. In the months following, there was a Bank of Canada interest rate increase, an announcement of new mortgage qualification rules and another Bank of Canada rate increase. All of these cooling measures resulted in prices coming down to a level where millennials could look at purchasing real estate once again.
By the end of 2017, Markham’s average property prices were as follows:
- Detached: $1,447,059
- Semi-Detached: $868,551
- Townhouse: $848,736
- Condo: $483,802
Stouffville’s average property prices concluded at:
- Detached: $1,131,018
- Semi-detached: $733,294
- Townhouse: $580,971
2018 brings opportunity for millennials. Communities such as Stouffville have seen home prices decrease to a point where individuals feel confident that they can qualify for a mortgage and own a home. Many millennials enter the housing market with high rates of student debt, higher living costs and greater job insecurity and find themselves borrowing from the bank of mom and dad to purchase a home. The market is primed and ready to welcome all the new millennials. At RE/MAX All-Stars Benczik Team Realty we have partnered ourselves with some of the best mortgage brokers, ensuring that you are fully qualified and ready to purchase your dream home.