Currently, around 76 per cent of renting individuals aged 18 to 34 are expecting to buy their own homes within the next 5 years, according to the Bank’s 2016 Millennial Home Buyer Report. However, their average target price as revealed by the latest Royal LePage House Price Survey is $350,000—a figure far below the national average home price of $512,621.
“In many markets, millennials may have to adjust their desired housing types and purchase prices, given what's available in certain areas,” according to a YPNextHome
Per the BMO report, those who are looking at getting a home in Quebec would need an average down payment of 12.82 per cent and pay an average expected price of $234,735, or around $927.54 a month. Montreal homes run a fair bit higher, however, and the Bank advised would-be buyers to budget accordingly.
Regina homes cost an average of $264,388 ($950.17 per month) with a 20.56 per cent average down payment. Atlantic Canada properties are a bit more manageable with a 13.39 per cent down and only a slight difference in monthly payments ($995.41 per month), but buyers in this market would have to deal with harsh competition because of the extremely limited supply.
Calgary and Edmonton both have been hit hard by the economic slump due to weak oil, which is why the BMO advised buyers to search closely for generous deals in these cities. Median price in Alberta is $386,480 ($1,502.17 per month) with 15.2 per cent average down payment.
Toronto millennials would have to get used to the fact that a condo would be their first homes, as the average expected home price runs at $415,110. Vancouver youth have it worse, with sky-high residential real estate prices at an average of $478,113.
“Sorry, Vancouver millennials. There's nothing in your average expected home price available in the city,” YPNextHome
The country’s overheated real estate markets have long threatened to keep homes out of reach of a significant fraction of millennials who are contemplating their first purchases, prompting a Bank of Montreal (BMO) study to outline housing prospects for Canada’s young professionals and families.