The Affordability Crisis is Causing Millennials to Move Outside the City
There are over 9 million millennials currently living in Canada and their average household income continues to rise year over year. With millennials being the largest demographic in Canada (individuals aged 23-38), the Centre for Urban Research and Land Development ran a study to investigate what destinations this group was moving to in mid 2019. According to the Financial Post, if millennials were to stay in the City of Toronto or move to large Canadian cities, they would have had to be saving for the past 29 years.
So which Canadian cities are millennials moving into?
We spoke with Naanan, the Lead Broker & Founder of C21 Innovative Prime Home Realty Inc, and here are his thoughts.
Ottawa is one of the hottest cities at the moment
“Based on our recent observations, we see Ottawa as a popular destination for Millennials to live. That being said, there definitely isn’t a shortage of millennials moving into the city.” – Naanan Sathiya – Founder Century 21 Prime Home Inc.
Ottawa yields affordable homeownership prices, unemployment rates under 5% and fairly cheap office prices. This means families, young couples and individuals moving to Ottawa are able to buy a house they can afford, can find affordable office space to buy and are likely to find a job. Employment and lower mortgage payments allows millennials to live more comfortably than in cities like Toronto or Vancouver. People are flocking across borders from Montreal, Vancouver and Toronto to make the move to Ottawa where they can live comfortably. According to the Ottawa Real Estate Board these are March’s average home ownership prices.
Average Price to Own a Condo in Ottawa as of March 2020: $369,311 (+27% from 2019)
Average Price to Own a House in Ottawa as of March 2020: $559,739 (+16% from 2019)
Other than Ottawa, where else are millennials moving to
Millennials are choosing to move to suburbs outside the Greater Toronto area such as Simcoe County (Barrie, Innisfil, Bradford, etc), Kitchener-Waterloo and the Durham region (Oshawa, Whitby, Bowmanville, etc). Their reasons for moving are tied to affordable homeownership. Here are some recent real estate stats on homeownership prices in Barrie, Whitby and Kitchener below.
Average Price to Own a Condo in Barrie as of March 2020: 437,625 (+9% from 2019)
Average Price to Own a House in Barrie as of March 2020: $550,298 (+11% from 2019)
Average Price to Own a Condo in Kitchener-Waterloo as of March 2020: $378,443 (+18% from 2019)
Average Price to Own a House in Kitchener-Waterloo as of March 2020: $679,728 (+16% from 2019)
Average Price to Own a 2 bedroom Condo in Whitby as of March 2020: (-22% from 2019)
Average Price to Own a House in Whitby as of March 2020: $694,00 (+12% from 2019)
Despite millennials leaving the city for more affordable housing, the city of Toronto is still growing in population mostly due to immigration. For every millennial that leaves the city of Toronto, 7 new people arrive. However, that doesn’t necessarily mean that these new city dwellers are buying homes. They could just be adding to the rental population.
Due to high homeownership costs in the City of Toronto, the younger population is being forced to move outside the city.
We want to hear your thoughts on this matter. Are you a realtor, recent homebuyer, recent home seller or planning to move in 2020? Comment below and let us know your opinion on the affordability crisis, what location you plan to move to and why.