Millennials challenged to afford home purchase

Economic news has been a real mix on the prairies this summer. The harvest is getting underway in southern and central areas. It won’t be a bumper crop by any means, with some places reporting the worst drought in more than a century, and others being deluged with torrential rain and damaging hail.

In Saskatchewan, the public sector continues to be hampered by week prices for most commodities, and Manitoba is not getting nearly the return they once dreamed of from their abundance of renewable Hydro power.

But, if you can find a job, the two prairie provinces continue to a good place to land, especially if you are faced with being ‘house poor’, in Toronto or Vancouver. The folks at Royal LePage have released their Peak Millennial Survey. For potential buyers aged 25 to 30, the company says Manitoba and Saskatchewan are places where a young couple just starting out can find a very nice home for a mere $350,000!

Us Boomers who include many of the parents of those Millennials can’t help but wonder where all those zeros came from, but if you think those numbers are out of sight, then you obviously haven’t gone shopping with the kids for a home in the lower mainland of BC. In that marketplace, 350 grand would buy a rather small two bedroom condo with one and half baths. In Toronto, the story is much the same.

More importantly, more than 40% of this age group who live on the prairies still believe that owning a home is a possibility. In Toronto and Vancouver, the Royal LePage survey suggests that roughly 80% of that same age group have resigned themselves to being renters for the time being, and having kids is probably not in their plans right now.

Buy those lottery tickets, and hope that interest rates don’t rise too high.

Roger Currie

About

Veteran radio journalist, now working primarily as a writer, commentator and freelance voice. My regular commentary "Currie's Corner" is heard on CJNU ( Nostalgia Radio ) at 93.7 FM. Text and audio can be found at http://www.cjnu.ca/c-corner.shtml. I also do a daily newscast on CJNU, at about 7.15 & 8.15, every weekday morning. It's also posted on the CNC homepage.

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