• What has changed in this hot real estate market? Emotions

    An All Too Common Story

    Cindy grew up on the West Hamilton Mountain and by all accounts did everything by the book. She studied hard and worked during the summers and graduated with a teachers degree. Shortly after being accepted for a position with the Hamilton board of education, we met for a preapproval. Her pay was low on the pay grade but she had a decent down payment and excellent credit. Her excitement could not be contained as her dream of homeownership would begin a new chapter in her life. Unfortunately, with the new stress test she was just outside her affordability range.

    Homeownership Turned To Despair

    That was three years ago. Cindy still lives at home and her once excitement of homeownership has turned to despair. Her income never caught up to the escalation of prices.

    Many Canadians emotions are changing on what their initial thoughts are on housing. The group particularly hit by this phenomenon are the millennials. This group of young people aged 25 to 40 years old might be the first generation not to exceed their parents in financial wealth. For a variety of reasons including housing, their plans, dreams and expectations are losing hope.

    In fact, this age group are delaying their wishes of marriage and children as well. These revealing numbers show the thought process has changed for millennials.

    Some Troubling Stats

    • 36% of Canadians under 40 years old have given up on buying a house
    • 62% believe they will be priced out of the housing market within the next 10 years.
    • 71% worry about affordability
    • 40% worry a lot
    • In 2020, 38% of parents helped their kids purchase a home

    Hot Market Hits Millenials

    Growing up we all believed we would have a piece of the Canadian homeownership dream. The negative effect of this hot real estate market is the consequence it has had for society and future home expectations. Hope, dreams, expectations and society as a whole have given way to anxiety, fear, uncertainty, stress and even despair, especially for the millennial Canadians.

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