Did the Pandemic Push More Canadian Millennials Into Homebuying?

Join us as we discuss the question ‘Did the pandemic push more Canadian millennials into homebuying?’ and some of its implications!

Did the Pandemic Push More Canadian Millennials Into Homebuying?
A Canadian house

The pandemic has had a profound impact on all of our lives. Its effect on the world is still not adequately understood. Not with how overreaching and omnipresent it is. So, it is only natural that it is felt in the housing market as well. Did the pandemic push more Canadian millennials into homebuying? The simple answer is: yes! However, why did this happen? And what are some of its consequences? To cover this, we will expound on our answer a little.

 

The drive for independence

Many millennials, who were content with either living with their parents or with roommates, no longer find the situation acceptable. The pandemic, driving us home and keeping us inside for so long, has forced us to face some uncomfortable moments. The best of friendships had grown frayed due to the anxiety and discomfort of this period driving emotions high. Even couples, who were previously spending a lot of time together, were forced closer than some were comfortable. And this has resulted in pushing more Canadian millennials into homebuying. Independence and total control of one's own space have suddenly surged in popularity. While before, it might have seemed wasteful at times to look into buying rather than renting, now the advantages of owning your home are more appealing than ever, particularly if looking into purchasing an upscale property with spacious rooms and a yard.

An angry millennial

Wanting stability

Of course, wanting to be alone and independent is not the only reason for the pandemic to push more Canadian millennials into homebuying. As professionals from Centennial Moving point out, renting a home or living in your parents' house brings, innately, a feeling of uncertainty. Yes, your name is on the lease. But ultimately, your request to prolong the duration can be turned down. Or you could be reimbursed and asked to leave the premises you had grown to consider home. And the added stress of such dark considerations was brought to the surface by the long periods of isolation the pandemic forced us into. Along with the ever-present fear that ruled during the early stages of the pandemic and the panic over the future potentially presenting even more forced isolation, this was an added reason for the millennials' eagerness to acquire their own homes.

 

The popularity of better amenities

Another thing to push more Canadian millennials into homebuying is the draw of amenities. A lot of people found themselves wanting better internet. More space for their home office. Better climate control. A dedicated laundry room or a private library. A fancier bathroom. Hardwood floors. A thousand little things and improvements that do not really stand out when you have the option of freely spending time away from your home. And yet, their absence presents an annoying challenge to deal with when you need to spend weeks without really getting to go out. Of course, some of the popular amenities are not cheap. Some are relatively easy to include into a home with a simple renovation. And something as simple as transforming your home through paintings can add a welcome dash of relief and novelty.

 

The state of the market

Naturally, the surge of interest in owning a home and the quality of amenities has impacted all aspects of the housing market. And the cost of relocating from Ontario, for example, has also been affected. If you want to hire long-distance movers to leave Ontario for good, you can’t expect the price to be what it was before the pandemic. Now, during and immediately after the pandemic, the prices were seeing a serious low. And yet, as the wave of popularity hits the entirety of Canada, they are surging across the board. It is only to be expected. A lot of interested buyers are competing in a limited market. Especially considering that the popularity of purchasing homes was not particularly high before the pandemic. This has resulted in what has occasionally been referred to as a 'panic-buying high', which is obviously not ideal for people looking to become first-time homeowners. Thankfully, you can still find good deals.

 

Common pitfalls of home buying

The sudden push of Canadian millennials into homebuying does, however, come with some hidden dangers for prospective homeowners. Because of the pandemic, many people resort to mortgages and loans to buy a home. Similarly, a lot of people seem enamored by the idea of fixer-uppers. Neither of the two is necessarily a bad thing. Mortgages can be repaid, and fixer-uppers can be a sound investment. However, what makes the situation a potential pitfall is the haste of the buyers to purchase. This means that they often do not adequately consider the consequences of a mortgage. Or do not properly take into account just how much money renovation or remodeling can cost. A lot of people might find themselves in financial distress if they rush. And if all you want is to freely decorate your home in style, you might want to stick to renting.

A stressed-out millennial

Is this popularity of homeownership a good thing?

Ultimately, the revitalization of the housing market is a good thing. It helps spur on the economy. And the enthusiasm of millennials to change and grow more independent is praiseworthy too. Everyone is solidly recovering from the ordeals of the pandemic. However, as was explained in the previous entry, it is not all sunshine and rainbows. If the matter is approached carelessly, it can end up hurting a lot of millennials and young families they are starting. So, while it is nice to follow your dreams and search for your ideal home, do it smartly. Plan ahead. Draw up a proper budget, and stick to it. And always, always do some research on the renovation you want to be done before you commit to buying a house that requires it.

 

Final Comment

So, did the pandemic push more Canadian millennials into homebuying? Yes! Did the market experience serious changes because of it? Also yes! However, whether or not this turns into a good thing or a disaster is still not decided. So, to swing it in the direction of something beneficial, make sure to approach the purchase of your home with the consideration and prep work it demands!