Calgary among most affordable markets in Canada for millennials
More millennials in the 30 to 39 age group are carrying mortgages in Calgary compared to the national average, says BorrowellAuthor of the article:Joel Schlesinger • for the Calgary HeraldPublishing date
Aug 27, 2021 • 4 days ago • 2 minute read • Join the conversation
“What we found is there’s a high degree of affordability in Alberta’s market, and that translates into relatively high rates of millennial home ownership,” says Andrew Graham, CEO and co-founder of Borrowell.
To that end, the study found that, among the 30 to 39 age group, 39 per cent of its members from Calgary had a mortgage compared with the national average of about 35 per cent.
That’s the highest figure in the nation aside from Edmonton — also at 39 per cent. Saskatoon, Regina and Winnipeg, however, did have higher percentages of mortgage holders across all age groups.
In contrast, Vancouver and Toronto had the lowest figure of 30- to 39-year-olds who held a mortgage at 24 per cent.
Calgary was also the most affordable for Gen-Xers — 40- to 49-year-olds — with 54 per cent holding a mortgage, followed by Edmonton at 53 per cent, the report notes.
Although not “perfect proxy” because the datapoint does not include individuals who own a home without a mortgage, Graham notes that when the percentage of mortgage holders is compared with average city home prices, it’s clear a correlation exists between jurisdictions with the highest home prices and lower rates of homeownership among younger Canadians.
Vancouver, Toronto, Burnaby and Surrey, for example, all had average home prices exceeding $1 million. In turn, they ranked one through four for the lowest rates of mortgages held among millennials. By comparison, Calgary’s average price was less than half those average prices at about $458,000, the report found.