New report highlights how millennials are shaping real estate trends in 2025 and beyond
A new report from real estate brokerage Zoocasa reveals that millennials are now the most influential group of homebuyers in Canada, driven by changing financial priorities, evolving affordability dynamics, and recent federal policy changes that have made homeownership more accessible.
Millennials—typically defined as those born between 1981 and 1996—are now at the stage where they are starting families, seeking long-term investments, and prioritizing homeownership. According to the Canadian Mortgage and Housing Corporation (CMHC), millennials account for:
- 56% of homebuyers aged 25 to 34
- 30% of homebuyers aged 35 to 44
This growing demand has made them a key force shaping Canada’s real estate market.
Several federal housing policies have made it easier for millennials and Gen Z buyers to enter the market:
- Insured mortgage price cap increased from $1 million to $1.5 million in December 2024, allowing more buyers to qualify for mortgage insurance on higher-priced homes.
- Homebuyers now require a lower down payment for homes under $1.5 million, making it possible to put down as little as $115,000 instead of the previous $280,000 for a $1.4 million home.
- The average home price in the Greater Toronto Area (GTA) reached $1,067,186, with detached homes surpassing $1.2 million.
These changes have led to greater flexibility in home purchasing, enabling younger buyers to stretch their budgets and afford properties that were previously out of reach.
Unlike previous generations, millennials are more willing to take on significant mortgage debt to secure homeownership sooner.
- In 2019, the median millennial mortgage debt was $218,000, which was 2.5 times their after-tax income ($83,200).
- In contrast, young baby boomers typically carried a median mortgage of $67,800, closer to their after-tax income.
Despite rising affordability concerns, millennials remain committed to homeownership. A 2024 Scotiabank poll found that:
- 58% of millennials and Gen Z plan to buy a home within the next five years.
- 82% acknowledge homeownership is becoming harder but still view it as a crucial long-term investment.
With their strong preference for detached and semi-detached homes over condos, millennials are influencing demand patterns, pricing trends, and urban development.
According to Zoocasa, millennials will continue shaping the real estate market well beyond 2025, as they seek financial stability, investment opportunities, and long-term security through homeownership.