Millennial home buyers would seemingly be the most eager of the population to delve into homeownership. However, current trends, statistics and surveys seem to say otherwise—at least according to details from Angus Reid for CIBC. In all, 42 percent of Canada’s millennials have delved into homeownership, with 81 percent of those claiming they intend to sell in the future. Nearly two-thirds of such respondents claim they plan to sell due to the high cost of maintenance, taxes and mortgage payments.
So, what are millennials who have not invested in a home just yet thinking? According to recent statistics, 23 percent of surveyed individuals state that they have no plans to buy a home, while 29 percent doubt that a home purchase will ever be within their budgets due to increased mortgage costs and interest rates. Due to these reasons, a whopping 36% of millennials who haven't bought a home currently believe that renting a home, apartment or condo is the wisest option.
Furthermore, many of Canada’s millennials claim that homeownership is making them cash poor, which is why many desire to sell. However, 62 percent claim that they are reluctant to sell their homes due to the fear of having to invest in a new home with the current hot real estate market that abounds today. For the time being, it appears that millennial home buying trends are slowing, but a rebound could just be around the corner depending on economical shifts.
First-Time Home Buyers Are Getting Older
People that are buying their first home in Canada are getting older according to a new survey. BMO released a new report showing that the average age for purchasing a first home is 36 years old.
On the other hand, the majority of people that currently own their home made their purchase before the age of 30.
A lot of people that are making their first purchases in the country are millennials and many have to put off the home buying decision for a number of reasons. A lot of them are carrying a heavy student loan debt that takes them years to pay off before they can even think about saving for a down payment. As well, rising home prices are also slowing down the process.
In the survey, some other interesting statistics about home buyers were also released. Of the first-time buyers, 22% are married, 50% are single and 19% are living common- law with a partner. The survey also showed that these individuals plan to stay in their first home for 15 years on average.
The report indicated that 4/10 of the first-time buyers would have to put off buying their new home due to high housing prices. Another report that was issued by BMO back in March, 2014, also showed that the timeline would be delayed for purchasing a new home due to rising prices and that many first-timers were predicting that their parents would be helping them out with a property purchase.
First-time buyers are now budgeting for a home worth $316,100 on average. In 2013, this number was sitting at $300,000. The average amount that is being saved by first-timers is 16% of the total cost of the home. This means that the average Canadian first-time buyer is attempting to save $50,576 to offer as a down payment for a new home.
More Millennial Women Seek Homeownership
Many millennial women are putting aside goals such as having a baby and getting married. While these items are still present on the list, they appear below owning a home. An online survey was recently conducted by Cribsuite.com and the results showed that approximately half of the millennial woman that were surveyed said that their primary goal was home ownership.
These days, many women want to be financially secure before looking at their other goals in life.
The website survey also showed other market trends that came out of this survey including:
- 56% of single women own their home and reside alone while only 47% of the single men surveyed were homeowners
- About 25% of the single women surveyed spent 50% or more of their annual income on housing costs while only 10% of the single men spent this much.
- Among the first-time buyers, almost 25% were single females while only 15% were single males
There are a variety of reasons why single women are becoming the majority of homebuyers including the ones below:
- Pursuing an education and a career before marriage
- Growing rates of divorce
- Women are earning more than they used to
It’s a brand-new world today when you compare it to the way things were just 50 years ago. Women have a lot more options when it comes to career, family and real estate goals. It used to be expected that a woman would get married, have some children and raise them while the husband went off to work as the main breadwinner of the family. Nowadays, women are more expected to get an education, find a challenging career path and then look at family-oriented goals.
In the meantime, while the woman is establishing her career and supporting herself, she also needs to look at her housing options. With the high cost of rentals, it simply makes sense for anyone, including both men and women, to look at home ownership as a viable housing goal. Single women are doing just that and have now become one of the largest pools of potential home buyers.
Millennials are Leaving Their Mark When It Comes to Design Trends
A lot of the new and upcoming design trends are focused on the millennial generation. This is the largest generation that Canada has seen since the baby boom. Millennials, which are people that were born from 1982 up to 2004, are causing major design shifts. Recently, the company Hunter Douglas talked to millennial designers to find out what this generation is looking for and how the trends have shifted.
Millennial designers aren't worried about the common rules and preconceived notions that have previously been in place. Informal and formal boundaries have become less distinct. Millennials aren't afraid to mix things up and experiment with the combination of modern and contemporary looks.
Individual expression counts the most and manufacturers are doing to their best to keep up with this design trend. This generation is looking for more options along with distinctive features on both modern and classic items.
Designers are able to make use of modern technology to help with this merging of the new and the old. Technology plays an important role nowadays when it comes to design projects. Clients and designers don't simply have to imagine how a project will turn out since it can be seen on the screen through design applications.
Hunter Douglas is also keeping up with these design trends by offering special design features at its official website to see how window coverings will look. You can upload personal photographs of your home and then try out different window coverings on the screen to see which style and color would best suit your home.
Clients and their designers can work closely together using various computer design programs to combine art and technology into one. This way, the mix of older and newer styles can be achieved graciously and with flair.