Millennials want to become homeowners, no matter what

Has real estate ownership become the obsession of Quebec millennials?

I asked myself the question while consulting the results of a Canada-wide survey conducted by the firm Léger on behalf of Royal LePage.

The real estate brokerage firm suggests that, ‘despite’ the obstacles, a vast majority of ‘Y’s intend to become homeowners. By “hurdles” we mean insufficient supply, high prices and rising mortgage financing costs. Allow me to offer another interpretation. It is not “despite” the pitfalls, but because of them that they are so determined. An idea seems to have taken root in the minds of this generation: access to property can only become more difficult, so you have to go for it, whatever the cost.

What exactly does this survey tell us, and what do the results suggest?

Many owners

First, a clarification: millennials are no longer quite youngsters, the oldest of the cohort have just turned 40 years old. They are not old either; those in the tail are still spending their late twenties. We are therefore essentially talking about thirty-somethings.

In Quebec, what proportion of this group declares ownership, do you think?

According to the survey, 57% of millennials own their place of residence. In the circumstances (the “hurdles”), and given that part of the cohort is relatively young, it seems like an honorable score.

Obviously, things are getting worse in Montreal, where only 35% of Millennials repay a mortgage, but the homeownership rate has always been lower in the metropolis.

The most recent data on the issue dates back to the 2016 census.

The next batch of housing statistics will be delivered later in September.

Still, in 2016, 63% of Quebec households were homeowners.

-Listen to Daniel Germain with Alexandre Dubé on QUB radio:

They want to buy

The most interesting data concerns the intentions of tenants of this generation. In this group, three out of four people believe that they will one day be homeowners (a quarter of them plan to buy in the next five years). The proportion rises to 82% in the Montreal region (the highest rate in the country), even if it means settling elsewhere for the most part, if necessary. Without the issue of the cost of living, three-quarters of Montreal millennials would be looking for an acquisition in Montreal.

If all these intentions materialize, it is better to give up hope of returning to affordability.

We do not have specific data for the other regions.

Generational priority

I mentioned the Y’s obsession with real estate ownership, but my judgment may have been colored by the Royal LePage CEO’s emphatic remarks expressed in the press release. Speaking of the purchase of a house by millennials, he evokes among other things “a rite of passage” and “an absolute priority” for which young people, “resilient”, are ready to make “the necessary sacrifices”.

It gives goosebumps.

The comparison is probably useless, but for the record, I don’t remember, in the early 2000s, that such a fever took hold of young tenants. There was certainly a market recovery after the disastrous 1990s, but nothing like a wave carried by the “top priority” of a generation.

It’s true that without the fear of missing the boat, we feel less of the urgency to rush there.

The effects telework

The Royal LePage survey also explored the issue of telecommuting. Here are some results concerning Quebec millennials:

A third (32%) would switch employers to work remotely entirely, 59% would not.
Nearly one in five (19%) would live out of town to work full-time remotely, 20% to adopt the hybrid formula and 7% to commute to and from work every day.
There are 8% who prefer to stay in town and work entirely remotely, 16% who would take advantage of the hybrid formula and 15% who would go to the office full time.