Potential millennial homebuyers in the Montreal CMA are split over whether they want the affordability and convenience of city living or fulfilling a dream to buy a home in the suburbs.
Affordable prices (30%), improved accessibility of services (18%), better public infrastructure (13%) and larger dwellings (14%), tips most (55%) of 18-34 year olds who intend to buy towards city living, but 60% said once they move to the suburbs they won’t be tempted to move downtown.
A Leger survey for the Association des professionnels de la construction et de l'habitation du Québec (APCHQ), the Québec Federation of Real Estate Boards (QFREB) and the Fonds immobilier de solidarité FTQ, also reveals that 50% of this age group intend to buy a property within the next five years.
"The Montréal market offers a variety of products that cater to several categories of buyers. According to our condominium construction partners, young people are disciplined. For their first purchase, they opt for a smaller, less expensive unit, which allows them to build their capital. A few years later, they sell for profit and then reinvest in a larger unit that better meets their needs. Condominiums can be seen as a great springboard for 18-34 year olds," stated Normand Bélanger, President and CEO of Fonds immobilier de solidarité FTQ.
The results show that 11% of 18-34s who intend to buy within 5 years, 11% will do so as an investment.
"The popularity of investments in rental properties is fuelling the vitality of Montréal's real estate sector, but also raises the fact that home ownership remains problematic more than ever. APCHQ believes that measures can be taken to help young families realize their dream of buying their first home," stated Paul Cardinal, Manager of the APCHQ Economic Department.
The poll also reveals that, among those who have bought a home in the past 5 years, 73% obtained a mortgage the first time they applied, 28% used the HBP as the main source of their down payment, 21% opted for a condominium and 52% for a single-family home.