I look back to those who purchased houses year ago whether our parent’s generation who have owned for decades and seen huge appreciation simply for paying their mortgage and bills month in and month out. Or, our “genius” friends who purchased a few homes right out of university, with the bright idea of renting them out. I’m sure you think of your fair share of people who do something similar and now seem to be sitting on a pile of equity in their home(s)!
So what of the current generation looking to get into the housing market? Let alone the future generations? How will Millennials purchase? Where will these Millennials live in Toronto?
Jobs are a little harder to come by now. Also, starting salaries are not going to allow for these people to save up much of a nest egg, even if they choose to live at home.
an example of a starting salary in Toronto and rental housing costs:
- Starting salary $30,000/year
- After tax income: $26,245/year divided by 12 months: $2187.08/month
- Toronto 1 bedroom condo rental $1800/month
- Income – condo rental = $387.08/month
- That’s $387.08/month before food, TTC pass, clothes, travel, entertainment…it simply doesn’t add up!
If the Bank of Mom & Dad can step in to help Millennials buy, well that would work! But hopefully there aren’t any strings attached! If Millennials don’t get financial assistance they will be pretty hard pressed to own a condo or a home in Toronto, Oakville, Burlington and in very little time, Hamilton!
Now comes my confession…I have no idea where all of the Millennials will live! I do have some thoughts beyond what I stated above, here they are:
- Bank of Mom & Dad financial assistance
- Buy and live with a number of friends
- Rent with a friend, family member, etc
- Think small…350 square foot condos as a single or young couple; 650 square foot condo as a couple with a child
- Move farther from the economic hub of Ontario, Toronto.
The next 5 to 10 years will tell us a lot about how the Millennials get on when it comes to living in Toronto and the Greater Toronto Area (GTA)
