With our provincial housing market heating up, many of us are concerned about what this means for owning a home in the next few years.
A new report by Ryerson University’s Centre for Urban Research and Land Development, sponsored by the Ontario Real Estate Association (OREA), found that the demand for home ownership will grow as millennials enter the housing market.
Here are the top three things to keep in mind about the future of housing:
- Millennials want ground-related homes, and fast. In the next 10 years, approximately 700,000 millennials will be looking to move out of their parents’ home. That means over half a million people will be searching for housing (rental units or owned homes) in Toronto, Oshawa and Hamilton. If supply doesn’t catch up to demand, the housing market will be short roughly 70,000 ground-related housing units, like detached houses, semis and row townhouses.
- Existing homes won’t be available until 2040. Millennials’ main competition in both the labor and housing markets, the Baby Boomers, are not expected to significantly downsize until mid-2040. This means that over the next 20 or more years, people looking for a home will need to rely on new housing developments to meet their needs.
- There’s a lack of availability, affordability and options. Ontario needs to address the lack of new housing and increase supply to meet growing demand. Building more lower-density housing should be a priority. Specifically “missing middle” housing like town homes, mid-rise and semi-detached homes where young people and families can get their start.
Ontario’s aspiring home buyers are counting on governments at all levels to keep the dream of home ownership alive. To ensure affordable home ownership remains a top priority for policy makers, OREA has launched the Keep the Dream Alive campaign. Find more information here.