In a commissioned survey of over 2,000 respondents, the Bank of Montreal (BMO) found that around 70 per cent of respondents in the 19-35 age range would be willing to delay the purchase of their first homes, even when 60 per cent of them noted that renting does not fulfill their needs.
Only 26 per cent of this cohort is expecting to buy homes by 2017, and approximately 44 per cent said that they aren’t comfortable in purchasing properties right now. Furthermore, 38 per cent of the respondents feared losing their disposable incomes, while 42 per cent said that they would rather use the funds for establishing start-ups or taking further education.
Meanwhile, 66 per cent are projecting a drop in value in the near-future, and 78 per cent stated that they might find their purchases defective after sale.
These results point at a key characteristic of the millennial would-be buyer: Housing is more of an investment than a milestone.
“The return on a home purchase is important to millennials and they take a thoughtful approach to how their home will fare in the current housing market,” BMO director of home financing Damon Knights stated in a press release, as quoted by The Huffington Post Canada.
To the uninitiated observer looking at purchasing trends in Canada’s dynamic real estate sector for the first time, millennials seem to be shying away from ownership—and the results of a recent study bear out this assumption.