Most GTA millennials who aspire to buy home would need to relocate: Poll

It appears the majority of millennials in Toronto have not given up on the dream of one day becoming a homeowner, but many think they will need to move to make their dream a reality.

According to a new Royal LePage survey conducted by Leger, 60 per cent of millennials in the Greater Toronto Area who do not currently own a home believe they will one day.

Among them, 63 per cent say they would have to move away from their current city to achieve the milestone.

“This generation of Torontonians overwhelmingly desires to be homeowners, and many of them are willing to make concessions in order to get on the real estate ladder,” said Tom Storey, sales representative for Royal LePage.

“Ideally, they would be able to work fully remotely and have the option to purchase wherever necessary to find a property within their price range. For those who have to be close to their place of work in the city, settling for a small condo is a common alternative.”

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More than half of GTA millennials already own homes, according to the poll, and 58 per cent plan to buy one within the next five years. Among that group, nearly half — or 45 per cent — plan to relocate to make their purchase.

“First-time buyers will have to get into the market any way they can,” said Storey.

“With interest rates rising, even if your monthly payments are similar today to what they would have been in February or March on a more expensive property, your down payment is now significantly lower. In the long run, is it more beneficial to purchase at a lower sticker price than lower interest rates, which will be renewed every three to five years.”

Nearly half of GTA respondents do not believe their salaries will increase at a sufficient rate that will allow them to own property where they currently live. But, 80 per cent of respondents in the city say they choose to keep living in the GTA if cost of living did not present a problem.

“Despite affordability challenges, Toronto remains one of the most popular destinations in the country. In recent months, I’ve seen a strong resurgence of demand for housing in the city centre, as students and renters return to the downtown core,” said Storey.

The survey found that three-quarters of GTA millennials who currently do not own a home feel that “home ownership is important.”

Recent data from Ratehub.ca found that someone would need to be making an annual salary of $220,000 to buy a home in Toronto with a 20 per cent down payment. The site says it used March 2022 and June 2022 real estate data to make the calculations.

Similar results for Canadian millennials

The survey also finds nearly three-quarters of millenials in Canada would choose to continue living in their current city if cost of living wasn’t a problem.

Just over half of millennials who don’t own say they plan to buy a home within the next five years. The survey found that 57 per cent of millennials in the country were already homeowners.

The poll finds younger Canadian millennials, under the age of 35, are more confident that they will one day one a home (62 per cent) — compared to millennials 35 and up (52 per cent).

The online poll surveyed more than 2,000 Canadians between the ages of 26 and 41, and was completed between June 10 and June 16 of this year.