Did you know that Millennials, those born between 1980 and 2000, are now the largest age group in North America? In Canada, this generation makes up just over a quarter of the total population (about nine million people). This group will have the same impact on our society as the Baby Boomers.
Decisions made by “Peak Millennials”, young Canadians aged 25-30, affect all of us and shape the real estate market, retail industry and much more. But interestingly, although likely offspring from the Baby Boomer generation, they are quite different from their parents. Here’s why:
Home Ownership Is More Difficult for Them
Yes, there is often a lot in the press about this generation and the crazy housing market. They face many obstacles: high home values, limited inventory in their range and daunting mortgage regulations. According to a recent Royal LePage Peak Millennial Survey, many respondents would indeed prefer to buy a detached home. However only a small minority believe they will realistically be able to find a property in their desired area. Millennials do move out from their parent’s home (35% per cent of adults aged 20-34 live with at least one parent according to Stats Canada), but there’s a smaller chance they will buy a house.
When They Buy, They Buy Small
When Millennials do purchase, they are often driven towards the condo market in metropolitan areas because that’s what they can afford. Between Millennials buying their first home and Baby Boomers downsizing, demand will continue for housing like condominiums and townhouses. This movement also affects other industries, like retail. Many savvy retailers are seizing on the small or downsizing trend and providing furniture and items tailored to small spaces. (Which is, frankly, good for all of us!)
Millennials Don’t Want Their Parents’ “Stuff”
So what does this means for parents who are downsizing or wish to pass on their treasures to their kids or grandkids? Millennials probably won’t want them! Their spaces can’t fit too much and they tend to live more minimally than their parents, not being bogged down by “heavy things”.
So if you are planning on handing down items to a young relative, have an honest conversation with them. And if you need to look at alternatives check out my 3 Cs: Consign, Cash or Charity
As they say, times are changing!
If you’re thinking of living small, be sure to read some of my relevant articles on Downsizing. And when you’re ready, we’re here to help! Please contact me at 604-813-8189 or info@outofchaos.ca.
Image by Sophia Baboolal from Unsplash
