Don’t worry about the backyard because there won’t be one. Reason: Condominium living and rentals are being touted as alternatives to entering Canada’s two most expensive markets, which are the Vancouver region and Greater Toronto.
Rising unaffordability and lifestyle preferences are driving many millennials to forego homeownership in favour of renting in Vancouver.
Ongoing urban immigration also continues to create a need for affordable rental units while many baby boomers are downsizing from houses to rentals, so the market is expected to respond to their expectations, according to news from globeandmail.com, citing a report by PricewaterhouseCoopers and the Urban Land Institute of the United States.
The report said first-time buyers need to face the economic reality that prices for single-family detached houses in the Vancouver region and Greater Toronto will remain well above local incomes over the long term.
In these high price markets, as supply of such residential units is constrained, an opportunity exists for the condominium and rental markets to reach those priced out of homeownership.
The report – based on interviews with housing industry officials, developers, real estate brokers, home builders and lenders – also said that for some buyers, getting into their dream home means living farther away from the city core.
For potential buyers unable to afford a house but not sold on condominium living, there is an increased push for mid-density development and stacked townhouses, especially in infill projects in Toronto.
Some industry observers said the Vancouver region and Greater Toronto could face a sales slowdown in 2017.