Toronto Millennials are poised to take over the rental market. Are you ready for them?
Millennials: We’ve heard this term thrown around a lot lately, but who exactly are they and what role does Generation Y play in the real estate market?
You don’t need to have an inside scoop to know that Toronto and Vancouver’s housing markets are on fire. As a matter of fact, not a day goes by without an argument of a housing bubble (or lack thereof), or a major media company discussing foreign investment and housing affordability becoming increasingly out of reach.
Toronto Millennials feel the effects of the latter, as the likelihood of having $1 million on hand for a house is slim to none. The first wave of this generation makes up a group of young single professionals. Unlike their predecessors, it’s more common to see millennials in their late twenties and early thirties focusing on advancing their careers. If we look at Baby Boomers and Generation X, we would see people graduating, finding work, settling into an area, getting married and purchasing their first home all before the age of 30. The thought of doing any of that for someone from Gen Y would be overwhelming to say the least.
As for the younger Millennials, the right of passage to adulthood includes transitioning from post-secondary institutions and living with mom and dad to living in the real world. Property managers see an increase in this demographic coming to them for rental properties. Gone are the days where young adults dreams include white picket fences and 2.5 children. Millennials are less interested raising families and climbing the corporate ladder and more interested in seeing the world and being their own boss. If you get the chance to chat with someone between the age of 23 to 28, ask them what their one wish in life would be. Nine times out of 10 it would be to travel or sell hats on the beach.
To the average Millennial, renting vs. buying is the best way to save money in today’s real estate market. As many do not have existing capital or sizable assets, renting puts them at a much lower risk of losing money, should there be a shift in the market. Between a down payment and a mortgage, and first and last rent, losing a deposit isn’t as big of a deal as foreclosure is.
So far this post has taught us that the majority of Millennials will not be buying your property–got it. What we haven’t covered is a way to capitalize on this market. Essentially, Millennials are a landlord’s and property manager’s dream. They make up a market of people in seek of quality rental housing without a major time commitment or financial investment. These people are loyal to premium brands (i.e. Apple or Samsung, iPhone or Android), and if treated right, will make wonderful long-term tenants. They also like to share their positive experiences with their friends via social media and other short forms of communication that don’t require face-to-face meetings, which means more business for you in the form of referrals.
If you are a property owner, leave Marketing to the Millennials to the pros. As seasoned Toronto property managers, we have all the tools to stage your property to make it appeal to quality tenants, and ensure that your investment is in good hands. For more information on our Property Managment services in Toronto, or how we can help source quality tenants for your rental property, contact us today.