Demand from millennials is helping to drive the continuous residential property price growth in Canada’s top property markets according to a new study from BMO Economics.
The latest BMO Spring Housing Affordability Report claims that the boom in major Canadian property markets is being largely driven by millennials buying up properties left and right due to the booming Canadian economy.
In addition to the actively buying millennials, the report also pointed at continued high levels of home building and only a moderate deceleration in sales as contributing factors to the trend of price growth.
Overseas property investors were also mentioned in the report as strong drivers of the housing market in the country, despite new taxes on foreign property investors introduced by the respective governments of Toronto and Greater Vancouver.
BMO Capital Markets senior economist Sal Guatieri stated: ‘Millennial buyers and international migrants are cushioning the decline in detached home prices in the hottest markets.
‘The perennially hot markets of Toronto and Vancouver are largely driven by the impact of millennial home buyers creating price increases in the condo and townhouse markets. These regions are also supported by strong economies, good demographics, and an abundance of high tech/high salary jobs.’
Guatieri continued: ‘We expect millennials to also bolster other markets like Montreal and Ottawa, as those looking for better affordability consider options beyond Toronto and Vancouver.’
Other factors considered by the report to be affecting the market on a national scale are unemployment rates being among the lowest on record, coupled with the highest population growth seen in a quarter century.
It seems that the Canadian property market is expected to continue the strong growth already seen over recent years. British overseas property investors may want to get involved and take advantage of the strong millennial demand for Canadian property.
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