For Millennials living in Canada’s biggest cities, buying a home is looking farther and farther out of reach.
With the price of housing sky rocketing, many Millennials are turning to their parents to help shoulder the financial burden.
Experts from HomEquity Bank are reporting a marked upturn in parents who are inquiring about assisting their adult children financially. To help their children with down payments, many are turning to reverse mortgaging their own homes.
Unsurprisingly, Toronto and Vancouver are the two cities where this phenomenon is most prevalent. The press release states:
“The average cost of a condo in Toronto, according to information released in April, 2016 by the Toronto Real Estate Board (TREB) is $393,589. In Vancouver, according to information released in January, 2016 by the Real Estate Board of Greater Vancouver, condos now sell for, on average, $466,600.”
But not all parents are able to maintain financial self-sufficiency, along with making major gifts to their children. So what’s a Vancouver Millennial to do?
Many are choosing to move back in with their parents. A May study by Pew Research Centre showed that more American Millennials are living with their parents than any other living arrangement.
Whether through significant financial gifts or moving back into their childhood bedrooms, Millennials are relying on their parents for housing in a significant way.
Housing is one of many unique challenges facing the Millennial Generation. Contact our team to discover how we can help your business better understand Canada’s largest and most influential consumer group.
Which Millennial Type is Most Likely to Live with Their Parents?: The Pacer.