As a millennial born in 1997, I have unfortunately come to terms with the fact that the odds are stacked against me in the quest for home ownership. As of 2016, the average earning potential for a millennial is around $35,000 (Cautero, 2019). While at first glance this seems like a lot of money and more than enough to sustain oneself when considering the skyrocketing cost of living, it is no surprise that more and more households are now sitting below the poverty line.
In Ontario, average annual household spending sits at around $88,000 (National Bank, 2018), leaving most millennial households sitting in a situation of deficit. Moreover, the cost of living fluctuates depending on the province, city or even area in which you live. For example, a person living in an apartment downtown Toronto can expect to see around $35,000 worth on annual expenses (Coxon, 2019). Regardless, the cost of living is too high, and the earning power of millennials is too low for our generation to have a chance at saving for a home.
On top of these major financial setbacks, according to a study conducted in 2018, “average millennial had about $36,000 in personal debt, excluding home mortgages” (Elkins, 2019). Of the respondents, the majority of them said that they have no idea when or if they would be able to pay these debts back (Elkins, 2019). With the rising cost of post-secondary education and the ever-changing terms of student loans, it is a safe assumption that the majority of this personal debit is from school.
All this being said, the majority of millennials are opting out of home ownership and instead choosing to rent apartments in the core of cities. This helps save money by keeping transportation, property taxes, and utility costs low. However, what does this mean for the grandiose subdivisions and suburban neighbourhoods? I think that we will slowly start to see more houses like then one I have depicted above. Left run down, abandon and in disarray.
References:
Elkins, K. (January 15 2019). Millennial households are earning more money than ever before—here’s why it may not be enough.CNBC. Retrieved from: https://www.cnbc.com/2019/01/11/millennials-households-earn-more-money-than-ever-heres-the-problem.html
Cautero, R. M. (May 6 2019). What Is the Average Millennial Income? The Balance. Retrieved from: https://www.thebalance.com/what-is-the-average-millennial-income-4171296
Coxon, L. (February 15 2019). This is how much it costs to live as a young person n Toronto n 2019. LowestRates. Retrieved from:
National Bank. (September 25 2018). What Is the Cost of Living in Canada. NBC. Retrieved from: https://www.nbc.ca/personal/advice/immigration/the-cost-of-living-in-canada.html