The Biggest Generation of all Time are about to Enter Their Spending Years

Posted by: Intercity Realty Mon, Feb 8th / 16

There is a major force approaching the real estate market, and this disturbance could dictate housing prices and demand for years to come. Enter Millennials: a generation of people that were born between 1980 and 2000.

During this time, Millennials grew up experiencing rapid changes, and thus their priorities and expectations are extremely different from prior generations. Understanding the wants and needs of the Millennial generation is extremely important for any business person; as they enter their spending years, Millennials are poised to reshape the economy; changing the ways we buy and sell and ultimately dictating how a company should do business in the coming decades. In fact, 34% of 18-35 year olds like a brand more when they use social media.

The Millennial generation is the largest in history, even exceeding the baby boomer generation. Having grown up with the internet and smartphones in their life from an early age, nearly 40% of them are on social media or watch TV online, a sharp increase over the Gen X and Baby Boomer generations that came before them. This connection to the online world has not only given them a stage to reach other people around the world, but also access information easier than ever before. A simple Google search could provide one with an 8000 word article on the Kennedy Assassination. Not a reader? You’ll likely find an hour long free documentary on Youtube on the same topic. Millennials grew up with tools like Google, Facebook, Youtube and Wikipedia and know how to use them inside and out. Millennials are both social and connected; finding information about any topic has never been easier.

With Millennials entering their peak buying years of 25 to 45 years of age, we could potentially be looking at a massive surge in home sales. 93% of millennial renters aged 18-34 plan to buy a home some day. According to Forbes, two thirds of Millennials interviewed by TD Bank in 2015 said they plan to purchase a home in the next two years. While Millennials are putting off marriage or having children far longer than previous generations, 70% of them believe it is important to purchase a home, far surpassing the importance of buying a car, TV or luxury bag.

In Canada, many Millennials are living or plan to live in Toronto or Vancouver, thanks mainly to their strong job growth numbers. For these young people, affordability is an extremely important factor in purchasing a home. As such, they are a major contributing force to the unprecedented condo boom in the Greater Toronto Area. There are an estimated 1.5 million Millennials in the GTA alone, and these young people are mostly interested in living in urban centres. This has resulted in massive condo sales in the downtown Toronto area, and a move away from the desire of a single detached, two car garage home in the suburbs like their parents before them. With the Toronto Real Estate Board expecting record breaking home sales in 2016, it seems clear that the presence of Millennials in the home buying market has already been felt, and will continue to be a force for years to come. 

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By Anthony Di Monte, Social Media Manager at Intercity Realty

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