Hopeful youngsters in the 25-34 age bracket now account for nearly half (49%) of Canada’s first-time buyers, according to the CMHC’s annual Mortgage Consumer Survey.
Meanwhile, 40% of first-time buyers are married, while 22% are newcomers to Canada. Fully 80% are in full-time employment, and 26% have household incomes ranging from $60,000 to $90,000.
Millennials have emerged as a significant market force in recent years, but a market environment characterized by restrictive rules and interest rate hikes has made ownership increasingly unattainable for the segment.
“The government’s recent policies stifled the hopes of aspiring homeowners,” Mortgage Professionals Canada board member Mark Kerzner said earlier this month. “Our members have seen, firsthand, a significant portion of aspiring Canadians who have been pushed out of the market.”
Read more: Housing misery is the Canadian young adult’s lot – study
Indeed, the results of an Angus Reid Institute survey released in August indicated that a significant proportion of Canadian millennials prefer to rent or live in another arrangement, describing their ownership experiences and attempts as “uncomfortable” and “miserable”.
The consequent popularity of rental housing among millennials has pulled down vacancy rates to historic lows while heating up rental price growth, MPC stated.
“I would suggest that the Liberals are acutely aware that millennials are a large voting demographic … and individuals whose interest they are looking to protect long-term,” MPC president Paul Taylor warned.