Manitobans in late 20s confident about home ownership: survey

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This article was published 16/08/2017 (2438 days ago), so information in it may no longer be current.

Manitoba is one of the best places to be if you’re a peak millennial hoping to buy a home, according to a new national survey by Royal LePage.

In its Peak Millennial Survey report released on Thursday, the real estate firm said Manitoba and Saskatchewan are two of the more affordable regions in the country for peak millennials — those between the ages of 25 and 30 years — to purchase a home.

With a budget of $350,000, they typically can find a detached, 1,575-square-foot home with three bedrooms and two bathrooms, the company said. And in Winnipeg, they typically can find a detached house with the same two amenities, but is even a little bigger, at 1,712 square feet.

The company noted that unlike most other provinces, the majority (50 per cent) of Manitoba/Saskatchewan respondents believe housing in their market is affordable. At 42 per cent, they also are the least likely to say the new federal mortgage regulations have impacted their purchasing power.

The survey also found unaffordability wasn’t the reason cited by most of the Manitoba/Saskatchewan peak millennials who aren’t planning to buy a home within the next five years; rather, 57 per cent of them said it was because said they want to wait until they can afford the type of home they want, and 47 per cent said they’re waiting until their jobs are more secure.

“With something for everyone, real estate markets in Manitoba offer peak millennials significant value for their money,” said Michael Froese, managing partner, Royal LePage Prime Real Estate in Winnipeg. “With a steady source of income, many are able to save for a home in the region rather easily when compared to other provinces, making the decision to purchase property more of a question of ‘when’ as opposed to ‘if.'”

Nationally, 64 per cent of peak millennials said they don’t think homes in their area are affordable, with a significant proportion of respondents in both British Columbia (83 per cent) and Ontario (72 per cent) asserting that prices are simply too high.

Of those that don’t expect to buy a home in the next five years, 69 per cent said it was because they can’t afford one, and 24 per cent said it’s because they can’t qualify for a mortgage.

“Facing challenges their baby-boomer parents never encountered, peak millennials are confronted with significant obstacles that vary depending on where they live,” said Royal LePage president and CEO Phil Soper.

“While finding employment in our largest urban markets, Toronto and Vancouver, is relatively easy compared to other areas of Canada, buyers face limited inventory and high home values in these regions. Where prices are more affordable, job markets can be more uncertain.”

murray.mcneill@freepress.mb.ca