High property prices are pushing millennials out of Vancouver. (Wikimedia Commons)

Millennials in Vancouver get least value for their real estate dollar: report

A 20% down payment in Greater Vancouver will you a home in Moncton

What kind of house can the average millennial afford to buy, depending on where they want to live in Canada?

People aged 25 to 31 years old earn an average salary of about $38,000 a year, according to a report Thursday by Royal LePage, which translates into a typical maximum homebuying budget of about $203,000.

That won’t go very far. The aggregate Canadian home value sits at about $605,500, Royal LePage says.

“A growing number of peak millennials will save, pool their money with a partner and/or borrow funds from their parents, many of whom are downsizing in retirement and can financially contribute to their child’s first home purchase,” the real estate company said in a release.

“While peak millennials are largely able to afford their monthly mortgage expenses, coming up with an adequate down payment often proves to be the greatest hurdle to homeownership among the demographic.”

A 20-per-cent down payment for a home in Greater Vancouver or the Greater Toronto Area – about $160,000 – is about the same price as a home in Moncton.

READ MORE: Strict mortgage rules slow B.C. home sales

The average Canadian home was listed for $325,000 to 425,000 in the first quarter of the year, and got you 1,269 sq. ft. spread out over 2.7 bedrooms and 1.8 bathrooms.

In Greater Vancouver, that cash would only buy you 788 sq. ft. with 1.5 bedrooms and 1.2 bathrooms.

That’s if you can even get them. There were only five active listings in Vancouver itself between $325,000 and $425,000.

Millennials are already buying the least expensive homes at the bottom of the housing market, said Royal LePage advisor Adil Dinani.

But with housing prices continuing to rise, he said, they’re starting to compete with homebuyers who wouldn’t usually be buying cheaper homes.

“From what we are observing, the majority of purchasers within this age range are getting assistance from their families to find enough money for a down payment on a starter home,” said Dinani.


Like us on Facebook and follow us on Twitter.

Just Posted

Langley trampoline gymnast off to Peru for world qualifiers

The gymnastics club is holding an open house this Saturday, Aug. 18, with free drop-in sessions.

VIDEO: Langley RCMP officer and brother lead Amazing Race Canada Heroes Edition

Courtney and Taylor Callens have become the team to beat

B.C. declares state of emergency as more than 560 wildfires rage

This is only the fourth state of emergency ever issued during a fire season

Trinity Western men’s soccer team starts California trip with a win

Spartans use their ability to execute on set pieces to claim a 3-2 victory

Police issue warning that 19-year-old poses ‘significant’ risk to the public

Varinderpal ‘VP’ Gill of Abbotsford involved in Lower Mainland gang conflict, police say

Average Canadian family spends 43% of income on taxes: study

Fraser Institute’s consumer report shows taxes accounting for larger chunk of income each year

Time to kick maverick Tory MP Maxime Bernier out of caucus, Scheer urged

Conservative MP Maxime Bernier is taking issue with Prime Minister Justin Trudeau’s oft-repeated message of diversity in Canada, calling it a form of “radical multiculturalism.”

Thousands of police officers expected at regimental funeral in Fredericton

Two civilians were killed in a shooting in Fredericton that also claimed the lives of two police officers.

2 girls, hand-drawn map in hand, sneak out of B.C. home for adventure

The pair’s escape has transit police reminding commuters to report unusual behaviour

Ex-B.C. teachers’ union leader among latest pipeline protesters to get jail time

Twelve people have been sentenced for violating court order to stay away from Kinder Morgan terminal

B.C. not prepared for a Humboldt Broncos bus crash, group says

An air ambulance advocacy group wants an overhaul of B.C.’s emergency medical system in rural regions

Liberals look at creating federal holiday to mark legacy of residential schools

AFN National Chief Perry Bellegarde said day to recognize painful legacy would boost understanding

Mounties deployed to help B.C. communities affected by wildfires

RCMP officers heading to places particularly within central, northern and southern B.C.

Interim GoFundMe payments approved in Humboldt Broncos crash

$50,000 to be given to each of the 13 survivors and each family of the 16 people who died

Most Read