Millennial buyers have been driving the Toronto real estate marketplace for many years. They have been hard at work, moving their way up the Toronto property ladder. The decision to purchase a starter condo, move up into a larger condo, and those who have chosen to expand into a house have done so to great success. The buyer demand for starter condos is what drives Toronto real estate market. There is no question that there has been a lot of sacrifice for those who have worked hard, saved their money and invested in Toronto real estate wisely.
What Millennials Value Most
The millennials we have worked with have more often than not gravitated to certain aspects of a real estate investment, unlike previous generations. Millennials are the first generation to accept and embrace life in a condo, despite having grown up in houses (for the most part) with stairs. Condos give the ease of lifestyle that allows the owner to lock the door and not worry about the property. Design matters more than any other generation, as does pen concept, clean lines, white walls, floor to ceiling windows, high ceilings. You name it when it comes to modern architectural design, and that’s where your Toronto millennial gravitates towards.
➤ Do you have questions about condos? Find your answers here:
- What to Know When Buying A Condo
- Questions To Ask When Buying A Condo in Toronto
- Are Condos A Good Investment?
What Millennials Value Least
The least exciting aspect for millennial buyers is quite simply taking on a big mortgage for a big house that isn’t anywhere close to where they want to spend their nights and weekends. Other generations chose the larger homes further from the city’s core, relying on cars to move around town and the suburbs. Suburbs are considered blasphemous for many millennials. Big house, stuffy lifestyle, high sacrificial mortgages also don’t appeal to them as this would cause them to be “house poor” and not be able to enjoy the lifestyle that draws them to Toronto life. Other aspects that Millennials don’t like are fixer-upper houses. Too much construction work and repairs translate to more money being spent and time and stress that would keep them from enjoying life outside the home.
Kitchen size no longer matters to millennials. Have you noticed how small condo kitchens have become? How small and narrow the fridge is? How is there rarely a dining area in a condo? The reason being is that millennials don’t prepare much food at home, nor do they entertain as much at home. Why would they fill the fridge and host friends when a great new restaurant has opened up down the street? And, UBER Eats is a click away.
Experiential Choices Matter
Millennials are the first generation to choose experiential investments over delayed travel and postponing the finer things in life. Millennials don’t typically survive on Kraft Dinner, so to speak. They decide to walk out the door and be steps away from a great restaurant (link here) and coffee shop. Choosing to socialize where they live, not jump in a car to drive across town. They want to be near their friends, nightlife and the arts and culture that Toronto’s downtown has to offer. Also, being that many millennials choose to purchase a condo, they love that they can close the door behind them and take off to New York City for the week, or escape the Toronto winter and travel to Costa Rica for surf and yoga retreats (add Kate’s site here). Living life to the fullest is the name of the game for the millennial.
The Millennial Generation Have Witnessed Huge Gains In Real Estate
The millennial generation began purchasing homes when they were 25. The starting year was 2015. The value appreciation of Toronto real estate has been incredible. The average Toronto home price was 1,060,000 for a detached house, semi-detached $714,000, townhouse $520,000. The average condo price was $416,000.
As you can see, the growth of their investments has been incredible! Frankly, there is no end in sight. Getting into the market is the necessary first step, allowing the time value of money to support your investment growth. It will happen; Toronto has a great future ahead!
➤ For more information on investing in the Toronto real estate market check out:
- Toronto Real Estate Investing FAQs
- Investing In Toronto Real Estate
- The Top 4 Condo Investment Mistakes To Avoid!
If you are looking to buy in Toronto, reach out to us here, we are here to help. We get what matters most!
