Just one in seven British Columbian millennials own their home. (Black Press File)

Many millennials locked out of housing market

About 14% of millennials own homes, compared to 45.7 % of baby boomers

Millennials — individuals born between 1980 and 1999 — have the lowest rate of home-ownership in British Columbia, compared to other demographics, according to new figures from Statistics Canada.

About one out of seven homeowners in B.C. — just under 14 per cent— fall into the millennial category. By comparison, individuals born between 1950 and 1969 record a home-ownership rate of 45.7 per cent. The number would be even higher if individuals born between 1940 and 1949 were included, as that category captures the start of the baby boom generation. Generation X — individuals born between 1970 and 1979 — records a home-ownership rate of 17.4 per cent.

The low rate of home-ownership among millennials does not surprise. While millennials recently surpassed baby boomers as the largest demographic group in Canada in accounting for 27 per cent of the overall population, they “may be facing different challenges in building wealth than previous generations of young Canadians” as a recent report from Statistics Canada puts it.

“Despite being the most educated generation, concerns have been raised that millennials have been ‘slower to launch,’” it reads.

RELATED: Canadian millennials buy more recreational properties than boomers: survey

Reasons for this reality are many fold. First, the good news. As millennials have entered the workforce over the last decade, their inflation-adjusted, real median after-tax household incomes have been higher than those of baby boomers or Gen-Xers at the same age, and millennials who have entered the real estate market have seen their assets rise. But millennials have also piled up more debt relative to their incomes when compared to young Gen-Xers and young baby boomers, thanks in part to higher student debt.

While millennials might be the most educated generation in Canadian history — about 70 per cent of those between 30 and 34 years old had a post-secondary certificate, diploma or degree, compared to about 55 per cent of Gen-Xers at the same age — this reality has also left him with more debt relative to income.

Sociologists, economists and historians have also noted that today’s millennials are entering an economy radically different from the economy of the first decades following the end of the Second World War. Manufacturing — partly buoyed by military spending related to the Cold War competition between the West and the East — still accounted for a significant share of western economies, granting millions the prospect of steady paycheque. High rates of unionization and social welfare spending further levelled the economic playing field.

Young people entering the workforce today are instead competing for unsteady jobs in the service industry, where incomes can range widely, thanks to several factors including advances in technology and neo-liberal policies that have allowed companies to shift production around the world. Globalization has also internationalized local real estate markets.

In short, millennials face constraints on their purchasing power that previous generations did not face, forcing many of them to either rent or live with their parents as they try to adjust to these conditions. Consider the following numbers. Figures from Abacus Data show 73 per cent of Canadian millennials either rent (40 per cent) or live with their parents (33 per cent).

This same data also shows that 80 per cent of millennials want to own a home, suggesting the existence of an untapped market. This said, the reporting from Abacus Data is not optimistic.

“With persistently high property prices, home ownership seems to be the privilege of the wealthy and well-positioned and millennials who work for depressed wages will have to keep waiting and saving until they can finally afford the home of their dreams,” it reads.


Like us on Facebook and follow us on Twitter

wolfgang.depner@saanichnews.com

Just Posted

Oak Bay win first Bridgman Cup since 1973

Annual UVic event is an indicator for coming South Island finals, Island finals and provincials

For Central Saanich couple, fight against MS is a matter of family

Altenkirks sell greeting cards and wooden bowls to raise money for MS Society

Saanich residents planning Halloween fireworks displays must plan ahead

Folks are required to attend one of three safety courses, buy a permit

Victoria feels the pinch at the pump as gas prices jump 18 cents

Gas up to 157.9 cents per litre at some stations

‘Panda’ Goodlife runner searches for his head

Facebook post for help leads to ‘unconfirmed panda head sightings’

WATCH: Greater Victoria’s top stories of the day

A round-up of the day’s top stories

POLL: Do you think the day of the federal election should be a statutory holiday?

Increasing voter turnout has long been a goal of officials across the… Continue reading

UPDATE: British couple vacationing in Vancouver detained in U.S. after crossing border

CBP claims individuals were denied travel authorization, crossing was deliberate

After losing two baby boys, B.C. parents hope to cut through the taboo of infant death

Oct. 15 is Pregnancy and Infant Loss Awareness Day in B.C.

Cheating husband sues mistress for gifted ring after wife learns about affair

The husband gave his mistress $1,000 to buy herself a ring in December 2017

B.C. massage therapist reprimanded, fined for exposing patients’ breasts

Registered massage therapist admits professional misconduct

B.C. boosts legal aid funding in new payment contract

‘Duty counsel’ service restored in some communities, David Eby says

VIDEO: Bear spies on cyclists riding by on Campbell River street

Riders seem unaware the bruin is mere feet away on the side of the road

Two Cowichan Tribes families devastated by duplex fire

Carla Sylvester sat in her vehicle, on Tuesday morning, with tears in… Continue reading

Most Read