This lack of satisfaction may result in greater housing demand next year
More than half of Canada’s millennials have reported being unhappy with their current homes, a trend that may contribute to accelerated market activity in 2021, according to a new study by real estate brokerage Properly.
The survey found that at present, only around 48% of millennials are happy with where they live. This was considerably lower than the pre-pandemic level of 67%.
“People’s priorities are shifting profoundly, which is leading to a dizzying pace of change in the housing market,” said Anshul Ruparell, co-founder and CEO of Properly. “Home is now more important than ever, and many people are suddenly dreaming of a lifestyle in which nature, space, and a home office take on greater importance – resulting in a housing market that’s more competitive than ever before.”
Of the millennials who expressed a desire for new residences, around 8% said that they will push through with their plans to buy their new homes next year. This was double the 4% seen in the rest of the population, Properly said.
Millennials’ preferences for their new homes tend towards detached housing, which was a key desire among 45% of respondents, backyard space (57%), ample square footage (44%), proximity to green space (34%), and better home offices (28%).
However, millennials’ expectations might run counter to current market realities.
“It’s not easy for most millennials to afford the detached home with the backyard and office space that they’re looking for,” Ruparell told MBN. “For those that have previously purchased a condo or starter home and accumulated significant equity over a number of years, the dream of buying a detached home in the city is certainly more realistic.”
Ruparell added that millennials, especially in Ontario, are becoming more willing to sacrifice their ideal locations just so they can get the features they prefer. Millennials who previously had their eyes on a home in Toronto may now be considering a move to the suburbs or leaving the GTA altogether for lower prices and less competition.
“The pandemic has certainly accelerated that trend,” Ruparell said. “What was historically viewed as a tradeoff (more space but outside of the city) is now being seen as a benefit, and one made possible by an increasing acceptance of remote-work arrangements.”
