In an open letter written by Emily Wilchesky she discussed how real estate prices Toronto have become so high that young professionals, including her, now find it hard to purchase their own properties in order to achieve independence.
This perspective is widespread, with many millennials believing that they are no longer capable of purchasing property within the city, or at least in the Greater Toronto Area, because of the steep prices. However, despite this widespread belief that they do not have the capacity to buy a home of their own, there are still those who fall within this age bracket who do have the means to do so. An article on Financial Post said that young professionals, or those between the ages of 18-34, still want to purchase a home of their own within the next two years, despite the high real estate prices in Toronto and Vancouver. Nonetheless, this desire does not stop them from being cautious or particular about buying a house.
So considering the common issues that millennials face, this article takes a look at some of the things that young professionals are factoring in when choosing to buy a property including the ability to customise houses and whether they have a home office.
While there are young professionals who can afford their own home, it doesn’t necessarily mean that they have enough money to burn to buy big houses for themselves. On the contrary, RealtorMag claims that young professionals tend to be financially conservative, which is also one reason why they prefer simpler homes instead of fancy material possessions or elaborate features that bump up the price of houses.
Toronto Realty Blog suggests that young professionals are more likely to stay in or want to be near neighborhoods that best fit that their lifestyles and interests. The article talks about how their aversion or openness to commuting helps them determine whether they want to stay within Toronto or relocate to neighbouring areas. For instance, for people who need to report to work early in the morning, the likelihood is they will prefer to stay within the city, or in Downtown Toronto, so they do not have to worry about spending a long time commuting. On the other hand, those who do not have to worry about that might want to buy a house on the outskirts of the city, a choice that may allow them to buy a larger property given that the prices outside of Toronto tend to be lower.
Furthermore, homeowners want to buy properties close to malls and other general amenities, as well as things that interest them, and young professionals are no different. This is a common theme across North America because for the most part young professionals value their social life as a key component to settling in an bustling city. For instance, an article on Discover Homes focusing on young professionals suggests that things like a vibrant art scene is just one of the reasons that may attract young professionals as it provides them with lots to do during their downtime. The example used by Discover Homes covered Wynwood Art District, a region celebrated for its many galleries. As a great example of Miami’s vibrant art scene, Wynwood Walls features artworks from 50 high-profile artists from 16 different countries. It’s for this reason that art enthusiasts are interested in living in the aforementioned region, along with the fact that Miami has a number of thriving business districts but also helps residents find that work/life balance due to it being a warm beach city and its vast options of places to eat and drink. Very much in the same way Toronto appeals to young professionals, Miami is also very appealing, however real estate prices have also skyrocketed in recent years, especially in some of the more popular districts.
While young professionals may not be fans of elaborately designed homes, they do have practical features they want to see in the houses they plan on purchasing. The National Association of Home Builders identified what millennials want to see in their own homes. In the survey, it revealed that 55% of millennials indicated that a laundry room is a necessity. They also said that exterior lighting and storage space are some of the features that they want to have in their home. Another industry survey, this time conducted by Better Homes and Gardens, revealed that millennials also want a decent size-garden where they can entertain guests.
Market Watch claims that millennials prefer smaller spaces that are essentially more “flexible” in nature. However, the trade-off for space is technology. They want to have homes that will allow them to use their handheld gadgets, such as phones or tablets, to control settings. Furthermore, they want modern homes that are energy- and cost-efficient. A large reason for this again boils down to cost. They don’t want to spend a considerable amount of money on bills, especially if they aren’t going to be spending a lot of time their due to work and other commitments.
What millennials do want is a place that would allow them to feel comfortable, without having the purchase of this burn a hole through their pockets. It’s a hard balance to find for today’s homeowners. Who’d be a real estate broker, right?