Canadian Millennials Are Prospering
“The current generation of millennials is, on average, wealthier than previous generations of young Canadians,”
says a report from the Canadian Department of Finance, though with some cautionary notes. And these well-to-do, youthful Canadians are prospering far more than their counterparts in the United States, Britain and Australia, where “younger generations are no longer successively wealthier.”
Young Canadians born in the first half of the 1980’s had an average net worth of close to $93,000 per adult. In contrast, previous generations of young Canadians had an average net worth of about $60,000 per adult – 35% less once adjusted for inflation.
Of course averages tell only part of the story; as with all demographics the wealth distribution among millennials is not even, with “stronger wealth gains at the top of the income distribution.”
Interestingly, yet to come for the millennials is a potentially huge transfer of wealth from their aging baby boomer parents. A recent Vancity report says the so-called “bank of mom and dad” is sitting on $157 billion worth of clear-title real estate in the Lower Mainland alone.
Millennial population growing
Recent statistics are showing that the percentage of 20-34 year olds has increased significantly in the Metro Vancouver area over the past 10 years. British Columbia Stats reveal that the Millennial population grew 9.5% in the City of Vancouver and 18% in the Metro Vancouver area of the last 10 years. As of 2015 there were an estimated 569,000 millennials in the metro region.
Millennials Buying into the Vancouver Lifestyle
Despite the high cost of housing it seems that Millennials are drawn to Vancouver’s lifestyle and not retreating from the market.
Sources: CBC News, The Vancouver Sun, Financial Post, British Columbia Real Estate Association.
