Canadian millennials better prepared to buy homes, says report

by Ryan Smith on 02 Dec 2015
Canadian millennials are faring much better than those in the United States in the wake of the global financial crisis – especially when it comes to property.

According to a new report from Toronto-Dominion Bank, Canada’s relatively rapid recovery from the crisis and its strong housing market helped boost the financial prospects of millennial workers. About half of Canadian millennials own real estate – a much higher home ownership rate than in previous generations at the same age, according to a report by the Business News Network. Meanwhile, just 36% of U.S. millennials are homeowners.

And rising home values mean that Canadian millennials have, on average, nearly double the net worth of young people in the U.S., according to the report. Millennial households in Canada are worth $156,000 on average, while young households in the States are worth an average of $76,000.

It’s not all wine and roses for young Canadians, however. The report said that Canada’s high home prices have left this country’s young people deeper in debt than their U.S. counterparts, with the average Canadian millennial owing about $113,000, compared to about $83,000 for U.S. millennials. And those higher debt loads mean Canadian millennials could be more vulnerable to a housing price correction, BNN reports.

Meanwhile, TD projects that Canada’s high home ownership rate has probably peaked, while the U.S. market has most likely bottomed out and is on the road to recovery, while higher levels of postgraduate education in the U.S. will help that country’s young workers to take advantage of its improving economy.

Post a Comment

Most Trending News

Upcoming event: Market Intelligence for Today’s REALTORS®
News

This free event will take place on April 25th at 9:30 p.m. and will provide valuable insights on the state of the current real estate market, as well as what the future may hold.

Read More
Google ads for real estate agents
News

If you're looking for a way to get more business as a real estate agent, you should consider Google ads. This is a fast and cost-effective way to generate leads.

Read More
What percentage of real estate agents fail and why?
News

If you're not finding success as a real estate agent, it could be because you're not marketing yourself properly, you haven't set realistic goals, or have poor people skills.

Read More