Foreign ownership may be driving up Metro Vancouver’s luxury real estate prices, but a new survey suggests another factor is causing high prices in the rest of the market:
The “Bank of Mom and Dad.”
The report in Real Estate Weekly suggests it’s the transfer of wealth from successful baby boomers over to their millennial offspring that’s actually driving up prices.
It says three-quarters of first-time buyers expect help from their parents for a down payment.
But Real Estate Weekly editor Joannah Connolly says 64% of those aged 41 to 50 also expect help to upsize, and mom and dad can afford it.
“It’s a boom generation. There’s lots of them. And they’re also the wealthiest generation in Canada’s history.”
Connolly says it’s happening because baby boomers can afford it — they’re the wealthiest generation in Canada’s history.
“What you’ve got is a bunch of people, a very large group of people, who have probably paid off their homes already, and they’ve got some millennial aged kids looking to get into the market now.”
Connolly says adding to that wealth are baby boomers getting larger inheritances, and people choosing to stay in the workforce longer.