In 2017, a Melbourne property tycoon said that millennials aren’t able to afford to buy their first homes because they keep buying avocado toasts. The millennials were outraged by the businessman’s statement.
The thing is, avocados can’t be blamed for this generation’s inability to buy their first homes right now. The combination of high inflation, low paying jobs, and sky-high real estate prices that are preventing Gen Y’ers from purchasing a home.
The real estate forecast for 2018 can give young aspiring homeowners some hope, though. There are good signs that the market will be friendlier to millennials next year, so it might just be the best time to shop for a new home.
There’s Hope
Back in the day, people got to buy their first homes around the age 25 to 30. These numbers seem impossible to replicate nowadays, however. With the current housing prices and median income, many people who pushed their luck have ended up cash poor.
Fortunately, not all of Canada is a victim of this trend. Calgary is actually noted as a millennial real estate market, with its large number of homeowners.
The trend doesn’t extend to the entire country, though, especially in expensive cities like Toronto and Vancouver. This is why the experts’ prediction that next year can be a great time for millennials to enter the real estate market is welcome news for Canada’s Generation Y.
According to reports, young adults should look forward to real estate prices slowing down in 2018. This will give millennials a window of opportunity in owning their first homes.
It’s believed that the supply will finally meet the demands by 2018, so the prices will also start to go down. This makes it a good time to buy a property for lots of people who have been holding out for a while.
Millennials in New Homes in New Places
The rise in the number of the new houses also makes 2018 a good time for millennials to become homeowners. Not only does the wide range of options improve the odds of finding an affordable property. The availability of new homes in more places outside the big cities also helps make it possible for the young population to afford one.
With real estate skyrocketing in major cities, however, the suburbs are continuously expanding. New properties are being created outside the surrounding suburban towns, creating an expansion and more options for young homebuyers. And since they’re located outside the city, the land prices are lower, allowing homes to be sold at much lower prices as well.
Some might be wary of having to commute longer by buying a property outside the city, though. This might really put some people off, especially if they’re used to being near everything. Some suburbs can really feel dead after hours if you’ve lived most of your life on a busy street.
If you consider the space you’ll have in the suburbs in exchange for a few extra minutes of commute, it can still be a fair trade. Some households, especially those with young children, feel like the suburbs will be a better place for their kids to grow up in. There will also be plenty of space to move around in, unlike in the city, which is always a good thing.
Finding Your Home, Sweet Home
Unfortunately, not all cities and neighboring locales have the same price ranges and job opportunities. This is why, despite the positive predictions for millennial homebuyers for 2018, it’s still important to remember that location is key to achieve this milestone.
Outside of Toronto and Vancouver are highly recommended locations for the budget-conscious. Some experts recommend Ottawa, Kelowna, Guelph, and Calgary as they have decent real estate and job markets.
