Although the dream of owning a home in a growing city is often out of reach for many, there is a growing market for an affordable starter home in the suburban lifestyle that many millennials are embracing. Why are they moving to the suburbs?
Millennials and their Dream Home
Millennials are moving into cities in record numbers and even suburbs to find their dream home and work location. Though this shift is attributed to many factors, it’s no secret that the search for affordable homes (and quality of life) is a major factor. When Millennials decide it’s time to settle down and start a family, they usually need a mortgage, a home, and a place where they can put down roots. However, due to skyrocketing house prices, getting a mortgage has become more difficult. This has led to many Millennials moving out of the city for a more affordable home.
The millennial generation continues to change the face of real estate, with Millennials now making up more than 30% of home buyers. Those Millennials aren’t just buying and moving into starter houses in the suburbs, though. Many are also looking for homes with more amenities, which is why they are moving farther and farther from the city centers they have grown up in. Instead, they are increasingly moving to the suburbs in cities like Toronto, Vancouver, and Montreal, where they want reliable transportation and a more suburban lifestyle.
How do millennials moving to suburbs and buying a home there affects the mortgage industry?
Millennials are moving into suburbs in Canada and buying homes there. They are doing so even though they are not renting, and buying is an expensive process. The theory is that millennials are spending more on homes than previous generations, so they can afford to buy. But the cost of a mortgage also rises with age. So, how does this affect the mortgage brokerage industry?
Millennials are moving out of big cities to live in the suburbs. This transition has resulted in residential real estate markets in the suburbs becoming very attractive to millennials, who are making up an increasing percentage of the homeownership population. Millennials are choosing suburbs for their home purchases, but millennials are choosing homes outside of major cities. This phenomenon has even led to an increase in the mortgage industry.
Why Should You Consider Moving to the suburbs?
When people think about moving, they typically think of cities. But, those are not the only locations where good real estate can be found. In Canada, suburbs are gaining popularity as a healthy alternative to cities, and for a good reason.
Check out some of the following reasons that may have inspired Millennials to move into the suburbs:
- It was less crowded. The pros of buying a home and living in the suburbs are many. As a home buyer, you have more time for leisure and hobbies, more time to yourself, and an opportunity to be less crowded. As a homeowner, you have the satisfaction of building something. And, you have a say in the way your house looks and feels.
- It’s more spacious. If you’re looking to move to a bigger home in the suburb, this is partly because you need more living space. And this is likely partially because you live in a small city and are looking to move. You might also want a home in the suburbs because of the space. Whether you have kids or you want to get a place of your own, more space is a big draw for many potential home buyers.
- Better prices. For families who want to settle down in the quiet suburbs but can’t afford to buy in the city, there are lots of reasons to consider buying a home and moving to the suburbs. Even though housing prices have gone up sharply across Canada over the past five years, the suburbs still have better prices than the inner city. And for Canadians who can’t qualify for the mortgage they need to buy a new home, the suburbs offer plenty of affordable options. So, if you’re thinking about buying a home, consider moving to the suburbs to appreciate the lower cost of living and the price savings on the home.
- New amenities. When renting, it can be hard to picture what your life would be like if you bought your own home. While your monthly rent payment is fixed, your monthly mortgage and other costs like property taxes and insurance can vary wildly. However, a mortgage payment may cost you less than renting, depending on where you purchase your home. When buying a home, it’s wise to take a look at what amenities are nearby since that can make your home’s ROI that much better.
- More greener spaces. More and more home buyers are choosing to live in the suburbs in Canada as urban sprawl continues its encroachment onto farmland and open space. There are many reasons for this choice, but one of the biggest is the increased access to green space. While many people think that living in the suburbs means living in the middle of a concrete jungle, this isn’t always the case. There are new developments being built with parks, lakes, and trails in mind, and all come with expansive green spaces for outdoor enthusiasts and families to enjoy.
- New developments, new infrastructure. Toronto’s growth has primarily been in suburban areas, and these cities and towns are growing as the city continues to expand. The suburbs are not new developments. Currently, the suburbs in Canada are a combination of existing subdivisions and new developments. The point is that any new development in the suburb is new infrastructure.
- Pay less. One of the reasons to consider buying a home and moving to the suburbs in Canada is that you can often pay less than renting an apartment or condo. Canada’s real estate market varies from province to province, but many of the most expensive cities in Canada, such as Vancouver and Toronto, are also some of the least affordable. In cities where housing is more expensive, renting tends to cost more than owning. But the cost of owning a home can range from as little as $250,000 in Toronto—where the average cost of renting is $1,850 a month—to $1.9 million in Vancouver, where the average monthly rent is $2,720, even smaller suburbs like Langley are still very expensive.
- It has the best of both the urban and suburban worlds. Although they don’t always get the credit they deserve, suburbs provide the best of both worlds. The suburban lifestyle offers the peace, quiet and open space that living in the country has to offer, plus the benefits of city living: convenience shopping, access to public transit, and easy access to big-city entertainment.
The suburbs offer the safety, privacy, and convenience that many city dwellers crave, while the suburbs offer smaller apartments and more indoor space. To decide which option is right for you, it’s important to weigh the pros and cons.
There are many reasons why you may decide to move to the suburbs in Canada. You may be looking for peace and quiet, or you may want to raise your family in a more family-friendly setting. You may want to be closer to your job, or you may be concerned about crime. Whatever reasons you have for wanting to get out of the city and into a more suburban neighbourhood, you need to know how to find a house for sale in the suburb of your choice.
The suburbs offer the safety, privacy, and convenience that many city dwellers crave, while the suburbs offer smaller apartments and more indoor space. To decide which option is right for you, it’s important to weigh the pros and cons.
