Generation Y, also known as the Millennial Generation, are the demographic cohort following Generation X. There are no precise dates for when Generation Y starts and ends. Commentators use beginning birth dates ranging from the early 1980s to the early 2000s (decade).
Millennials are sometimes called Echo Boomers, due to the significant increase in birth rates during the 1980s and into the 1990s. Millennials are mostly the children of baby boomers or Gen Xers. The 20th century trend toward smaller families in developed countries continued, however, so the relative impact of the "baby boom echo" was generally less pronounced than the original boom. http://mashable.com/category/millennials/
While they are indeed staying within the downtown core, renting, near their jobs and social activities, the gender balance seems almost out of kilter; the 26 - 35 year old female population is establishing a nest, starting on their journey of a career and starting a family. [She bought a condo]
Their male counterpart is playing Grande Theft Auto V, rooting faithfully for the Toronto Maple Leafs while watching the game with his buddies at the local pub while consuming beer and chicken wings. If he is lucky and determined his circle of influence possibly rents ice time for junior or minor hockey leagues.
Both are making good money although they may have some student loans still outstanding. The men have nice cars [with matching payments] a few credit cards to support their lifestyle and generally are still living at home.
The Credit Criteria has become harder to qualify with shorter amortizations and a change to qualifications at the posted rates. [can be as much as 2% higher] Additional living expenses are the technology that Gen Y is so attached to using; the internets, downloading, file sharing, music and video. We are not reading books anymore, we download the PDF's to our reader or iPad. We don't talk to strangers we stand and text.
The Job Market is very competitive in 2013. Everyone wants degree and job experience. There are concentrations of jobs for MBA, business grads, Accounting and Financial Majors, Health Services that are Science field related and specialty medical field services are growth fields. The Trades are crying for experienced workers.
Many are working on CONTRACT Positions; this means that you do not have a full time job, [as your employer and release you at anytime] No Full Time Job; No financing is possible for a mortgage. Although your local loans officer may see you at the branch weekly, the Letter of Commitment will request confirmation that you are in a full time position; or as Business for Self will provide a NOA (Notice of Assessment) that shows your income taxes liability is paid and current.
Let's deal with affordability.
So lets recap; Millennials buying into the HOT Toronto Real Market at an average sale price of $856k is not a reality. They are actually singles buying condos, disproportionately by gender, Then.... What or Who is driving the market?
Immigration and Migration to Toronto. We are in the Top 5 as a destination.
Bragging rights: Toronto, Vancouver and Calgary among world’s top five most liveable cities, ranking says
The Canadian cities were outshined only by Melbourne, Australia and Vienna, Austria, which ranked as the first and second most liveable places respectively.
http://business.financialpost.com/2013/08/28/toronto-vancouver-and-calgary-among-worlds-top-five-most-liveable-cities-ranking-says/
What do you think?
Increased demand for smaller units and/or condominium units in “walkable” neighbourhoods that involve less commuting;
ReplyDeleteHigher housing prices in established neighbourhoods that may effectively reduce opportunities for most “Millennials” or “Gen Y” home buyers;
http://davidpylyp.blogspot.ca/2013/10/housing-trends-millennials.html