April 11, 2022
Murtaza Haider & Stephen Moranis
The rapid escalation in housing prices has disadvantaged millennials who started their working lives with wages that failed to meet housing affordability thresholds, but they are increasingly leveraging digital solutions to compete in tight markets.
First-time homebuyers, the majority cohort of those buying a home in Canada, are mostly younger households transitioning from renting or living with their parents. In the United States, millennials comprised the largest share of homebuyers at 47 per cent, according to the National Association of Realtors (NAR).
A recent commentary noted that “millennials have aged into the housing market at the worst possible time.” Rising home prices and the persistent imbalance between supply and demand have frustrated millennials who typically lose bidding wars to older, wealthier buyers.
But not all is lost for the millennials. Historically low-interest rates imply that their monthly mortgage costs will be relatively affordable...