High property prices are pushing millennials out of Vancouver. (Wikimedia Commons)

Millennials in Vancouver get least value for their real estate dollar: report

A 20% down payment in Greater Vancouver will you a home in Moncton

What kind of house can the average millennial afford to buy, depending on where they want to live in Canada?

People aged 25 to 31 years old earn an average salary of about $38,000 a year, according to a report Thursday by Royal LePage, which translates into a typical maximum homebuying budget of about $203,000.

That won’t go very far. The aggregate Canadian home value sits at about $605,500, Royal LePage says.

“A growing number of peak millennials will save, pool their money with a partner and/or borrow funds from their parents, many of whom are downsizing in retirement and can financially contribute to their child’s first home purchase,” the real estate company said in a release.

“While peak millennials are largely able to afford their monthly mortgage expenses, coming up with an adequate down payment often proves to be the greatest hurdle to homeownership among the demographic.”

A 20-per-cent down payment for a home in Greater Vancouver or the Greater Toronto Area – about $160,000 – is about the same price as a home in Moncton.

READ MORE: Strict mortgage rules slow B.C. home sales

The average Canadian home was listed for $325,000 to 425,000 in the first quarter of the year, and got you 1,269 sq. ft. spread out over 2.7 bedrooms and 1.8 bathrooms.

In Greater Vancouver, that cash would only buy you 788 sq. ft. with 1.5 bedrooms and 1.2 bathrooms.

That’s if you can even get them. There were only five active listings in Vancouver itself between $325,000 and $425,000.

Millennials are already buying the least expensive homes at the bottom of the housing market, said Royal LePage advisor Adil Dinani.

But with housing prices continuing to rise, he said, they’re starting to compete with homebuyers who wouldn’t usually be buying cheaper homes.

“From what we are observing, the majority of purchasers within this age range are getting assistance from their families to find enough money for a down payment on a starter home,” said Dinani.


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

LETTER: Different taxation system necessary

Langley Township taxpayer argues that taxes shouldn’t be based on assessed home values

VIDEO: Maple syrup taffy among treats and demos at 11th annual Vive les Voyageurs festival

Fort Langley National Historic Site celebrated French Canadians and Métis fur traders

Surrey-Langley SkyTrain business case to go to mayor’s council next week

Also plans for agreement that ‘commits’ Surrey to policies, initiatives to help ensure project’s success

Officials reaching out to those in contact with Canada’s first coronavirus patient

The illness has sickened at least 1,975 people and killed 56 in China

Canada’s basketball community mourns Kobe Bryant after helicopter crash

Bryant was an 18-time NBA all-star who won five championships

‘Devastated’: Fans, celebrities remember Kobe Bryant after his death

Bryant played all of his 20-year career with the NBA with the Los Angeles Lakers

Investigation launched after six dead puppies dumped in Richmond hotel parking lot

RAPS reminds people they can always give up puppies they can’t take care of

Canadian Lunar New Year celebrations dampened by coronavirus worries

But Health Minister Patty Hajdu said today that the risk of infection is low

Man clings to roof of car driving along busy road in Maple Ridge

The man was also seen jumping on the vehicle

B.C. VIEWS: New coronavirus outbreak an important reminder

Walking the line between cautious and alarmist

Kobe Bryant, daughter killed in California helicopter crash

Bryant entered the NBA draft straight out of high school in 1996

Most Read