Millennials in Toronto are the least likely in the country to own a home, says a new report from Borrowell.
The lending company looked at home ownership rates across 15 Canadian cities and found that Toronto has the lowest home ownership rates in the country.
The data is based on 713,000 credit reports from consumers with a credit score of 600 an above.
“Middle-aged Canadians (40-59 year olds) are 1.4x more likely to own homes than older millennials (30-39 year olds), and they are over 5x more likely to own homes than younger millennials and older Gen Z Canadians (20-29 year olds),” said the report.
The report noted that millennials in Toronto aged 30 to 39 have 25% own a home, while those aged between 20 to 29 at currently at 7%. However, Toronto residents who are 40 to 59 years old increased 10%.
However, Vancouver has the most most expensive average home prices at $1,290,250, while Toronto is coming in second at $1,075,636.
“The top two cities with the highest home ownership rates amongst older millennials are Edmonton and Calgary, with 0.39 average mortgage trades per consumer. Edmonton’s average home price is $398,229 and Calgary’s average home price is $458,300, both below Canada’s average home price of $734,500.”
“With more Canadians than usual setting their eyes on the suburbs, local buyers and millennials looking for their first home have faced more competition, especially as real estate prices continue rising,” said Borrowell Co-Founder and CEO Andrew Graham. “You can see that millennials in certain cities are facing bigger hurdles than ever before when it comes to purchasing a home, even if they have a good credit score.”
Toronto has the lowest rate of home ownership (0.22 average mortgage trades per consumer), and the second highest average home price among cities in the study
Regina has the highest rate of home ownership, roughly 1.7x more than Toronto (0.38 average mortgage trades per consumer vs. 0.22), along with the lowest average home price among cities in the study
Toronto and Vancouver have the lowest rates of home ownership amongst older Millennials aged 30-39 (0.24 average mortgage trades per consumer)
Edmonton and Calgary have the highest rates of home ownership amongst older Millennials, roughly 1.6x more than Toronto and Vancouver (0.39 average mortgage trades per consumer vs. 0.24)
Middle-aged Canadians who are 40-59 years old are 1.4x more likely to have a mortgage than older Millennials who are 30-39 years old (0.50 average mortgage trades per consumer vs. 0.35)
Middle-aged Canadians are 5x more likely to have a mortgage than younger Millennials and Gen Z consumers aged 20-29 years old (0.50 average mortgage trades per consumer vs. 0.10)