Despite the devastatingly high housing prices in the majority of Canadian millennials want to own a house, according to the TD spring homebuying survey. They found that eight out of ten millennials surveyed still have dreams of owning a home and are even willing to make major compromises to make that happen.
The survey asked hundreds of millennials, aged 25 to 34 about their goals and thoughts regarding homeownership. TD VP of Real Estate Secured Lending, Pat Giles said, "although homes in today's housing market cost much more than they used to, the desire to own the right home hasn't wavered, especially for Millennials."
Giles also said that "we're now seeing millennials looking beyond the city for their housing needs, particularly as they start thinking about their needs for the future, like having more space to raise a family."
In fact, looking beyond the city is the biggest compromise that millennials are willing to make in the quest for home ownership. The survey found that 64% of Canadian millennials would move to the suburbs in order to be able to afford a home.
In response to the survey, Giles said, "many are choosing the suburbs to either make the move to a new home or upsize from their current one, a shift from just a few years ago when city living was this generation's preference."
That's not the only concession millennials are willing to make. Those surveyed also said they would make major lifestyle changes in order to be able to afford a home.
For example, 58% of respondents said they would be willing to eat out less.* 56% of respondents said they would go shopping less. Finally, 50% said they would spend less on entertainment in order to afford a home.
Given the current housing market in big cities, it's a good thing Canadians are willing to relocate out of the city. In Toronto, for example, the average price of houses sold in the past month was $880,000. This was an increase of over 5% in the past month. Nonetheless, according to TD's survey, Canadian millennials still have hope.
*Editor's Note: This story has been updated.