Countless articles are circulating the web trying to interpret the mysteries of the so-called Millennial generation. Writers and analysts seem perplexed over their career goals, spending habits, and even their love of avocado toast. As the world tries to enter the minds of these tech-savvy, creative young people, the real estate market continues to ask:
Where does this generation want to live?
While 20 and 30-somethings have widely been branded as city slickers internationally, some new studies counter that notion. The latest is a Canadian study, showing that about 65% of Canadians ages 18 to 35 would consider buying recreational property (think cottage or cabin in the woods) in the next 10 years, Mortgage Broker News reports. And about 28% of families with young children said they would sell their urban homes to move to a cottage, cabin, or ski chalet.
It’s no question that people love camping and taking up these recreational homes. In fact, about 47% of adult campers said in a recent survey that they enjoy this type of outdoor recreation due to the joy of camping itself. Buy regardless of this joy, it isn’t exactly the popular narrative for Millennials to shack up amongst nature over a bustling city.
So, what is motivating these families to head to the forest?
Christopher Alexander, regional director of RE/MAX INTEGRA in the Ontario-Atlantic area, said in a statement to Mortgage Broker News that dreams of cottage ownership paired with steep property costs are driving people out of the cities.
“Many Canadians with young families are determined to own a cottage or cabin and are willing to explore avenues to turn this dream into a reality,” he said. “As real estate prices in areas of Canada remain high, more buyers are exploring unique financing options such as fractional ownership in a shared property, purchasing a recreational property with a friend and even selling their primary residence and putting the equity into a cottage or cabin.”
Other studies have echoed this idea, stating that young people are in fact interested in settling down in a more traditional sense and investing in their own homes. For example, even a minor kitchen remodel has an average ROI of 82.7%, something you can’t take advantage of in an urban rental property.
And, perhaps, Millennials are simply getting older.