Millennials Facing More Debt Challenges Than Gen X
Gen' X'ers and Millennials have vastly different childhood memories. Gen X'ers remember the days without the internet and TV ruled the media. Millennials played video games on Saturday morning instead of watching cartoons. However, Millennials are the current target for criticism. They are labeled as lazy, big spenders and entitled. Gen X’ers were happy to have employment while Millenials are often paid a bonus for getting to work on time.
For those of the X Generation born between 1965 and 1984, you might remember that Baby Boomers had their own share of criticism. In their defense, both Gen' X and Gen' Y have experienced radical social and technological change.
Yet, for the Millenials, there are two areas where some sympathy needs to be extended, residential property price and cost of education.
Residential Property Price
The residential average house price in Greater Toronto Area (GTA) has been on a steady increase since 2007. First Time Home Buyers are required to have a larger down payment and carry a larger debt load.
Cost of Education
The following is quoted from StatsCan Archives on the cost of full-time undergraduate education.
"Canadian full-time undergraduate students are paying an average of $4,524 in tuition fees for the 2007/2008 academic year, up from $4,400 the year before. In 1998/1999, they paid $3,064 on average, and in 1988/1989, they paid $1,185".
Just recently, MacLean's Magazine reported that: "Undergrads in Canada are now paying, on average, $5,959 in tuition fees for the school year that just started this fall, or 3.3% more than they were last year".
As REALTORS® we must approach the Millennial Home Buyer with this in mind. They will have different challenges and possibly different long term plans than previous generations.