Toronto house prices could scare away millennials

October 13th, 2016  |  Home

At about $750,000 The price of an average home in the GTA has soared far beyond the reach of the average resident especially millennials, who typically earn less than the average household. According to the Huffington Post, 45% of respondents aged 18 - 34 said they were “seriously thinking of leaving the GTA because of the cost of owning a home here.”

While the majority of millennials in this survey aren’t being dissuaded by high housing prices, the number is certainly lower than earlier this year where two-thirds of millennials expected to buy homes in the city in the next five years even if they have to rely on parental help.

Predictably, more mature age groups who have higher homeownership rates were less inclined to say they would leave the city due to prices.

While dissatisfaction with affordability certainly isn’t new. People are tired of voicing their dissatisfaction and having it fall on deaf ears. Much like Vancouver, much of the blame has been shifted to wealthy foreign buyers. A large majority (77%) of respondents said they would support a 15% tax on foreign buyers just like the one in Vancouver.

New mortgage rules will take effect next week making it even more difficult for some to afford their homes. While such a move may successfully slow the Toronto housing market, it seems like the majority of those affected by such a policy could be exactly the people ne would want settling down in the city. If many young professionals are pushed away from the city it’s the city that suffers.