Concerns over the cost of homes in the Greater Toronto Area continue to persist in post-pandemic times. A recent survey conducted by the polling firm Leger on behalf of Royal LePage, asked 2,003 millennials between the ages 26-41 Canadawide about their views on home ownership, the cost of living, and remote work. Of those who were surveyed, 403 of them stated they lived in Toronto.
According to the survey, 3 in 4 millennials living in Toronto say owning a home is important to them, but less than a quarter of respondents believe they’re able to afford a place in the city.
Approximately 74 per cent of respondents in Toronto said owning a home is important, but only 22 per cent said they think they’ll be able to purchase a home. Roughly 37 per cent of Toronto millennials said they believe they will have to relocate to become homeowners.
These results suggest that those views may be linked to the respondents’ stagnant incomes.
“This overwhelming feeling that you can solve problems by relocating is an offshoot of the pandemic,” stated Phil Soper, the CEO of Royal LePage.
Soper claims COVID brought upon a work-from-home movement with people deciding to move to other parts of the province and the country. But he says for many that this isn’t a solution.
Four in five people surveyed saying if the cost of living was not an issue, they would choose to continue living in Toronto. But nearly half said they do not think their salaries will increase at a rate that would allow them to buy a home in the city.
Answers from Toronto respondents reflect similar feelings among millennials across the country. Across Canada, 86 per cent of respondents said owning a home is important to them, while only 29 per cent said they think it could happen in their hometown. Approximately 31 per cent said they would need to move in order to afford a home.
Despite recent drops due to higher interest rates, the average price to purchase a detached single-family home in Toronto remains above $1.5 million, according to the MLS Home Price index.
According to the Royal Lepage survey, 56 per cent of millennials in the GTA already own their home, which is closely in line with the homeownership of that age group Canada-wide at 57 per cent.
Of the respondents surveyed, those who plan to purchase a home in the next five years, about 47 per cent, said they would do so in their current city while 45 per cent said they would relocate.
“It comes back to what you want to do and what's important to you, as a family, as a person and for most Canadians, about seven in 10 Canadian families, own their homes. So it's been a long established way to build stability or security for your family and with millennials, our research shows exactly the same mentality," Soper said.
