The past decade has been tough for young people in Greater Vancouver who have seen their salaries stagnate and housing prices skyrocket. It’s not just the cost of living that is affecting them, but also the lack of opportunity to buy a home. Many are giving up on owning property altogether and resigning themselves to renting until they can no longer afford it or life throws them an unexpected curve ball. In this blog article, we'll discuss what it means to be a millennial and zoomer in today's real estate market, some strategies for dealing with affordability difficulties, and whether it's worth it.
First off Millennials and Zoomers need to understand it is still possible however they must buckle down and save for a house (a downpayment) without debt. While attending postsecondary education, it may appear as though this is preposterous but it is the only way. Some ways of saving money for those studying are; moving out of residence or rental units and back home to live with parents, working while studying and or taking time in between to build savings and staying away from pricey post secondary education institutions. Building credit, avoiding debt and living within their means while studying will help them get a head start on saving for their first home.
In addition to being occupied with studying another reason why young adults are renting rather than purchasing their own home is because feeling hopeless young people are now choosing to spend their money on other things like travel or leisure activities. If Millennials and Zoomers don't make it a priority in their lives now to buy a home they will not be able to in the future. Owning real estate is one of the most secure ways to accumulate wealth and will help prepare for retirement. While it may seem far-fetched, young people in Greater Vancouver should prioritize buying real estate above vacations and luxury items because it is vital to their future financial security.
With low interest rates, an increased job market and many new housing developments being built there is hope for this demographic to get back on track. Be aware however that the clock is ticking. It is best to start saving while young and the earlier you begin the better. Saving for a downpayment should be set as an attainable goal even if it's small amounts at first; with time, patience and perseverance Millennials and Zoomers will soon see themselves in their own homes rather than on social media vacations only to return afterwards to someone else's property with a hefty rental bill.