The Generation Y group which is made up of people born in the early 1980’s to the early 2000’s have opted to rent rather than buy a home. This section of the population are the children of the “baby boomers.” There are many reasons why they prefer renting over buying, but of course, the obvious one is the state of the economy they were born into. According to countless surveys done, the Generation Y population are less involved in politics and generally are non- voting participants, but they do have a strong voice in what they feel needs to be done in their communities. Unlike the generation before them, they tend to move from one job to another, rather than settling like their parents did in the same job for their entire life; but make no mistake, they still want security. Being born into high unemployment rates and the incredible competitive job seeking environment has obviously affected their career choices. We are witnessing a huge boom in self promoting entrepreneurship. Working for themselves seems to be more attractive than working for the big corporations that screwed their parents in the end. This in turn, impacts their housing choices and where they will live.
So why are “The Millennials” as Generation Yer’s are called, not buying at the age their parents did? Well, there are many theories, but in reality, one of the biggest obstacles seems to be coming up with the enormous down payment needed nowadays to secure a property of any kind. This sector of the population tends to prefer to live closer to the city, whereas the previous generation swarmed to the outlying suburbs to lay their community roots and raise their families. Real estate close to any city is much more expensive than the suburbs, especially metropolitan cities like Vancouver, Toronto or Montreal. Wages in today’s world do not make it easy to afford the absorbent down payments needed to purchase that elusive first time home. Renting, sometimes is the only option available to this young group.
Another sobering factor that this generation has seen first hand, is their parents facing the extreme hardship of losing their homes after years of faithfully paying their mortgages. Who wants to jump into that sinkhole? Also, marriage is the catapulting springboard to almost all home ownership and Generation Y historically has proven they want to wait to marry unlike their mother and father who married right out of high school.
Renting versus Buying…
Renting an apartment or condo in Vancouver allows you to take the time necessary to decide where you really want to live, not just randomly buying a house or condo in an outside area because that’s all you can afford. Ultimately, the routine lifestyle of the suburbs and long commute to the city everyday will most likely not be a happy outcome for the entire family. Right now in the world of housing markets, sales have slowed down but prices have only gotten higher. It may be a very smart move to rent and wait, first see what happens before jumping in to buy a home.
As a general rule, as a renter, you would not have the burden of home taxes, massive heating bills, expensive home repairs etc… which will allow you to save and move yourself into a solid, secure viable financial position. Renting also allows peace of mind, it is an enormous sense of relief to know exactly what your monthly bills will be will no sudden financial surprises. You are not responsible yourself, if the plumbing stops functioning or the dated kitchen appliances finally break down. Imagine having to replace a leaky roof or rotting deck? Every home owner may have to face this crippling financial burden at one time or another. Besides, as a renter you can just move if you get the urge to try another location. You are definitely not as mobile as a property owner.
But everyone must make their own minds up about renting or buying. There are pros and cons to each side and only you know what is best for your family. As a successful Vancouver Property Management company, we at Orca Realty deal with both sides of the coin. We represent our home owners and try to find the best AAA tenants we can to rent their precious properties. We also help renters find the perfect home to buy when they are finally ready to take the big leap in their lives to become property owners.
As far as the Millennial’s go, they feel strongly about doing everything differently from their parents. They prefer to parent from the philosophy of participation and nurturing a quality of life that includes everyone, this is a very important issue for them. Job security takes a back seat to overall happiness in their lives. Gone is the excessive need for pensions and climbing the corporate ladder at all costs, replaced with a balance of both job and happiness.
Sounds perfect to me.