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Millennials Set to Drive Change in Real Estate Market

They have the potential to be the biggest home-buying cohort in history — even bigger than their baby boomer parents.

But where Canada’s millions of millennials will end up living, and how they will impact the real estate market, has just started to play out.

The first wave — boomers’ kids who range in age from 15 to 34 and make up about one-quarter of Canada’s population — are just moving into their prime home-buying years. 

Already, those fortunate enough to find a decent, dependable job, rather than just contract work, have been helping drive competition for starter condos and single-family homes.

One thing is clear so far: Millennials have had a huge impact on the GTA rental sector because of their willingness to pay a hefty price — on average about $1,800 a month — to rent sky-high new glass-and-granite condos an easy walk from work.

That’s helped fuel the unprecedented condo boom in the GTA, especially in the downtown core where, despite thousands of new suites on the market, the rental vacancy rate remains below 2 per cent.

With the average resale price of even a Toronto condo now inching toward the $500,000 mark, developers are starting to shift their sights to building rental units, anticipating that many millennials will be renters for life.

The average price of a resale home in the GTA — condos and single-family homes combined — was $654,221 in November, according to the Toronto Real Estate Board.

 

Percentage of residents who are millennials (Toronto Condo and Loft Neighbourhoods):

 

1. Bay St. corridor: 49 per cent

Median purchase price of one-bedroom condo: $418,328

Median rental price of condo: $1,828

 

2. Waterfront-downtown entertainment district: 49 per cent

Median purchase price of one-bedroom condo: $360,492

Median rental price of condo: $1,666

 

3. Niagara St. neighbourhood: 48 per cent

Median purchase price of one-bedroom condo: $341,264

Median rental price of condo: $1,683

 

4. Church-Yonge corridor near Wellesley: 44 per cent

Median purchase price of one-bedroom condo: $370,339

Median rental price of condo: $1,750

 

5. University of Toronto-Harbord: 42 per cent

Median purchase price of one-bedroom condo: $412,000

Median rental price of condo: $1,700

 

6. Palmerston-Little Italy: 39 per cent

Median purchase price of one-bedroom condo: $378,450

Median rental price of condo: $1,850

 

7. Kensington-Chinatown: 38 per cent

Median purchase price of one-bedroom condo: $371,000

Median rental price of condo: $1,750

 

8. Yonge-Eglinton: 38 per cent

Median purchase price of one-bedroom condo: $392,000

Median rental price of condo: $1,750

 

9. Bloor-Sherbourne: 34 per cent

Median purchase price of one-bedroom condo: $340,100

Median rental price of condo: $1,650

 

10. Trinity-Bellwoods: 33 per cent

Median purchase price of one-bedroom condo: $402,450

Median rental price of condo: $1,700

 

Source:  Susan Pigg, Toronto Star

 

If you want to buy or sell a Toronto condo or loft, contact Casey Ragan at 416-486-5588 or by email at casey@remaxhallmark.com

 

Casey Ragan

“Toronto’s Condo Authority”

Toronto Condos and Lofts

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RE/MAX Hallmark Realty Ltd., Brokerage
723 Mount Pleasant Road
Toronto, ON
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Trademarks owned or controlled by The Canadian Real Estate Association. Used under license.

The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.

Information is deemed reliable but is not guaranteed accurate by TREB.

Toronto Real Estate Board - IDX Last Updated: 8/17/2017 1:51:56 AM