5 millennial myths you can consider busted
By Lucas on Sep 22, 2016
To be honest, we’re getting pretty tired of hearing the M-word. You know what we’re talking about: millennials. According to the media and marketers, this generation seems to be responsible for all the ups and downs in every major industry. For the purpose of this post, we’re going to refer to millennials as young homebuyers and we’re going to bust some of the millennial myths that are impacting the new home industry and real estate market.
MYTH: All young homebuyers want to live in a small condo unit.
TRUTH: Small condo units are just about the only thing young buyers can afford in the Greater Toronto Area (GTA). Flashback 20 years - couples in their 20s were buying new low-rise homes in Oakville for well under $200,000. According to the Toronto Real Estate Board (TREB), the average price of a detached home in the 905 region was $905,610 as of the end of August 2016.
The starter home has become the move-up dream home for young buyers. It’s clear that high density housing is necessary to accommodate a rising population, but it is incorrect to believe that all young buyers desire this lifestyle.
MYTH: Young homebuyers don’t drive cars.
TRUTH: Most young homebuyers can’t afford a mortgage AND a car. There are so many expenses related to owning a car, like gas, insurance, and the actual car payments. Plus, a parking spot can add tens of thousands of dollars to the price of a condo unit.
And there are definitely plenty of young buyers living with their parents in the suburbs that drive to work. Reducing the amount of cars on the street is an obvious goal for the good of everyone in the city, but there will always be people - young and old - that prefer to drive and actually don’t mind sitting in rush hour traffic (especially with the rising popularity of podcasts).
MYTH: All young homebuyers want to live downtown.
TRUTH: Believe it or not, there are young buyers that don’t like the hustle and bustle of the downtown core. The streets can be confusing for the directionally challenged, traffic can be overwhelming, and the light and noise can be too much to bear.
The allure of the city draws in many young buyers, but some still dream about the single detached home on a large lot on a quiet suburban street or in a rural setting. There are options like this for first-time buyers outside of the GTA, but they are usually marketed towards retirees and downsizers.
MYTH: All young homebuyers care about the environment.
TRUTH: The sad truth is that while they may belong to the green generation, not all young buyers can afford to lead a sustainable lifestyle. Organic food costs more and some energy efficient homes come with big upfront costs.
Aside from those that can’t afford to live sustainably, there are young buyers that just plain don’t care about the environment. As condo dwellers, we can attest to the constant mixture of recyclables, garbage, and organic waste in our buildings’ garbage rooms. If every young buyer living in the condo cared about the environment, then these different types of waste would be sorted (it can’t just be a few members of an older generation carelessly using the garbage chute).
MYTH: Affordability is the only issue.
TRUTH: There’s more at play when it comes to young homebuyers and their role in the housing market. Young buyers are part of a cultural shift; priorities are changing. Marriage, kids, and a home aren’t at the top of the list for everyone in their 20s.
Travelling, starting a business, going back to school, learning a trade, practicing art, writing a book - there’s an endless list of things to do that are equally or more important than owning a home.
But, looking back, you can probably say all of these things about every generation. That’s kinda the point of this post. We can’t blame or cater to...millennials...like they are so different than any other group of 20 to 30 somethings that have existed.
Of course, there are impacting factors like recessions, war, and disease, but people in their 20s and 30s all have something in common; they all just want to discover who they are and figure out a way to build a foundation to support it (no matter what era they grew up in).
