Millennials are changing the real estate market guide, Housing investment advice, New building design
Millennials Are Changing the Real Estate Market
24 Mar 2022
The few millennials with enough money to enter the real estate market in Toronto are changing things up. At the beginning of the pandemic, even with businesses closing and the future as uncertain as ever, home prices saw a drastic price increase.
These prices are only increasing more with time, and millennials are getting creative to invest in real estate to lay down roots both physically and financially.
So, what exactly are millennials doing differently than previous generations of people entering the housing market?
Small Homes for More Money
Homebuyers in today’s market are spending a lot more to get a lot less, a trend so hot it’s spreading across Ontario. It used to be possible to buy a single-detached home downtown for under a million, but today, that’s a pipedream. You’re lucky to get a garage for that cheap!
One example of this trend is what the city calls “Garden Suites,” a change to the zoning law put in place in January 2022, which allows homeowners to rent out detached housing units in their backyard. Such a plan encourages the city to add more density without having to build missing-middle apartments.
The trend of small, bare-bone condo units with only one or a maximum of two bedrooms is continuing unabated, as developers look to maximize profits rather than build the type of housing policy experts say is desperately needed.
Even if you factor in the rate of inflation over the decades, homebuyers today are getting a lot less home for a lot more money.
When many people apply for a mortgage, they get financial assistance from their parents. This is truer now than ever, and parents with sufficient wealth need to find new ways to support their adult kids in a way that minimizes their tax obligations.
Millennials are accustomed to using their phone to gather information and make purchases, and that’s what real estate experts like Regan McGee, founder of digital real estate marketplace Nobul, are trying to leverage by disrupting the traditional real estate process.
In Toronto Life’s profile on Regan McGee, the publication explains how the innovative digital marketplace focuses on millennial first-time homebuyers, “a generation accustomed to using technology to personalize their experiences while simplifying their lives.” Nobul streamlines the process to help educate users as they go.
Consumers can get transparent support by leveraging dynamic digital marketplaces like Nobul that incentivize real estate agents to compete for clients and deal flow. And it’s all available through their phone, which makes things easy and convenient while providing the benefits of AI and algorithms.
Technology has changed a lot in the last few years, while the model surrounding how real estate is sold has not. Why should real estate agents make the same cut they did when houses were way cheaper, and they had way less work to do?
Leveraging the power of things like transparent reviews and algorithms is a crucial way that millennials are doing real estate real differently.
The world is changing, and so is real estate. As costs skyrocket, the process of buying a home also changes. Millennials are doing real estate differently than prior generations, and things will probably continue to change as technology and markets evolve.
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