New Trend: Millennials Choosing to Rent
As the media continues to debate the dilemma of Millennials and home purchasing, many young Canadian adults are finding homeownership becoming less of a priority to their future financial security.
For decades, homeownership has been considered the stronghold of financial security in North America. However, that time may be passing. In some places homeownership rates are dropping, and some worry the number of people disregarding the benefits of homeownership are increasing rapidly. Due to major pivots in the investment world and easier access to commercial real estate investing, some are arguing that the renting versus owning a home debate doesn’t even matter anymore.
Canadian home prices continue to rise in strong economic cities like Edmonton and Calgary. Eventually interest rates will follow suit. This has many analysts and Canadian real estate agents suggesting Millennials really can’t afford to wait to buy homes. This position is also compounded by escalating rental prices in top cities.
However, researches are suggesting Generation Y may place less emphasizes on homeownership compared to their preceding generations. Recent surveys show they like the idea of owning a single-family home in the suburbs, but there are other priorities that top the list first. For example, they’d prefer to share vehicles rather than own their own and invest their finances in owning gardening plots and businesses over a house.