The majority of millennials who purchase a home in metro Vancouver’s sizzling market will go into by debt by $2,745 every year according to a new survey released by Vancity credit union.
The new report, which uses data from Statistics Canada, found that millennials living in Vancouver aged 25 to 34 have the least amount of discretionary income compared to their counterparts across 10 other Canadian cities.
In 2015, a typical Vancouver millennial household of two earned an average of $72,291, the second lowest in Canada. Researchers indicated that the average cost of owning a home in the city is approximately $44,354 per year. That cost is a scary number when you take into account additional expenses including food, clothing, transportation, utilities, healthcare, and taxes.
Researchers also found that millennial couples who purchase a condo are better off, especially if they plan to raise children. Their discretionary income also significantly rises if they move to Victoria, but is still ultimately low when compared across the country.
“The status quo isn’t good enough if we want this generation to be able to put down roots, possibly have a family and still enjoy a basic quality of life in Vancouver and Victoria.” says William Azaroff, Vancity’s vice-president of community investment.
After Vancouver, Toronto has the next most expensive housing market.