Quote:
Originally Posted by LouisVanDerWright
I was getting worried the rental machine was slowing over the winter, but in the last couple of weeks the spring season has brought yet another onslaught of interest in my listings. There will inevitably be a slowdown, but the city is also just seeing legitimate demographic change driving these developments. The real question is when the market starts switching to condo.
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One big issue now is the current generation, mostly millennials, simply don't have money for down payments. I'm 37 and have had a condo since I was in my mid 20's. Most of my friends who I met when I moved here in 2001 all had condos by their mid to late 20's. The older generations tended to buy houses even earlier, when they got married and started having kids in their mid 20's.
After the housing crash chased the younger generations away from home buying out of fear of value declines, the rebounding values and "normal" resumption of the market hasn't prompted this generation to buy.
These days it's more a lack of savings and funds for a 20% down payment than anything. Kids just aren't saving anymore, they're all renting.
I look at all my coworkers at work in their 20's and talk to them, they're virtually ALL renting even into their 30's now, it's just not on the table. Renting is perfectly normal, buying is too much of a risk.
Amazing how many new apartments have been built the past 6 years. Can you imagine going back to 2007 when everyone thought apartments were dead and condos were the only wave of the future and tell them that 10 years from now tens of thousands of new
apartment units would be piling into the metro area?