It’s no secret that for millennials—those born between 1981 and 1996—the journey to homeownership feels like an uphill battle. The traditional milestones of settling into a stable career, paying off debts, and saving for a home are more elusive than ever before. Student loans loom large, job markets fluctuate, and rising home prices seem to push the dream of homeownership further out of reach.
But here’s the thing: while the barriers are real, they don’t have to be permanent. In places like Victoria, BC, the real estate market continues to evolve, offering both challenges and opportunities for millennials looking to plant roots. Let’s take a closer look at how you can navigate this market—because yes, your dream of homeownership is still achievable.
The Victoria Real Estate Market: What You Need to Know Right Now
We all know that location is key in real estate, and Victoria, BC, is no exception. But what does the current market look like, and how does it impact millennial buyers?
As of August 2024, the housing landscape in Victoria has shifted. Single-family homes, once the hallmark of the “white picket fence” dream, have seen a 7.7% drop in price year-over-year, settling at $1,287,400. On the flip side, condos have surged in value, up 10.4% from last year, with a benchmark price of $559,200.
So, what does this mean for you? It means there are opportunities, even in a challenging market. It means condos—smaller, more affordable, but packed with urban perks—might be your golden ticket. Meanwhile, the dip in house prices could present a unique moment to explore larger properties if you have the financial flexibility.
However, these stats are more than just numbers. They reflect the evolving dynamics of the market and hint at the tension between what we want in a home and what we can afford. But here’s where it gets personal. As a millennial, you’ve grown up adapting to change. The shifting real estate market is no different—you can adapt, too.
Facing the Hurdles: A New Kind of Challenge
For millennials, the road to homeownership isn’t paved with the same markers as it was for previous generations. Instead, it’s filled with unique, sometimes overwhelming, challenges that can make buying a home feel unattainable. But understanding these hurdles is the first step toward overcoming them.
- Student Loan Debt: This is the elephant in the room for many millennials. Student loan payments can eat away at your savings, making it difficult to scrape together the 20% down payment that traditional home buying models often recommend. But you’re not alone—many millennials are in the same boat, and lenders are increasingly understanding of this fact.
- Job Market Fluctuations: You’ve experienced the Great Recession, a global pandemic, and now a shaky recovery. It’s no wonder so many millennials are stuck in precarious employment, whether it’s contract work, freelance gigs, or multiple part-time jobs. Stability, the bedrock of mortgage approval, sometimes feels out of reach. But remember: many lenders now offer products tailored to gig-economy workers.
- Lifestyle Preferences: Not all millennials want the same things their parents did. You’re more likely to prioritize walkability, sustainability, and vibrant urban neighborhoods over sprawling suburban homes. But here’s the catch: urban cores often come with a hefty price tag. Still, your values—community, work-life balance, environmental consciousness—can guide you to smart decisions in finding a place that reflects who you are without draining your wallet.
How to Break Through: Steps Toward Owning Your First Home
For millennials, the road to homeownership can feel like a maze with endless twists and turns. But like any maze, there’s always a way out. It might require patience, some detours, and maybe a little creativity, but the destination is still in sight. Here’s how you can start navigating the home-buying journey:
- Manage Your Debt — Don’t Let It Manage You
Yes, student loans are daunting, and for many millennials, they’re a constant weight on your shoulders. But here’s the reality: debt doesn’t have to keep you from buying a home. What matters is how you’re handling it. Lenders are increasingly looking at how well you manage your debt, not just how much you owe.
Start with small victories. Pay off high-interest credit cards first, chip away at student loans, and consider refinancing if it means lowering your payments. It’s not about wiping out every penny of debt before buying a home—it’s about showing that you’re in control.
- Lean on First-Time Home Buyer Programs
Here’s some good news: you don’t have to go it alone. The Canadian government offers programs that can help you get a leg up. The First-Time Home Buyer Incentive lets you reduce your mortgage payments without needing a larger down payment, giving you breathing room on those monthly costs.
Plus, if you’ve been diligently stashing money in your RRSP, the Home Buyers’ Plan (HBP) allows you to withdraw up to $35,000 tax-free. Yes, you’ll need to pay it back eventually, but it can be a game-changer for getting over that down payment hurdle now.
- Rethink What “Home” Means to You (and Consider Co-Owning)
We get it: the dream of a single-family house with a yard might feel a bit out of reach when homes are priced at over $1.2 million in Victoria. But here’s the thing — home doesn’t have to look the way it did for your parents. Condos, with a current benchmark price of $559,200, offer an affordable, urban alternative. You get access to walkable neighborhoods, shared amenities, and lower maintenance—perfect for a busy millennial lifestyle. If you’re open to moving a little outside the city core, townhouses or duplexes could give you more space without breaking the bank.
And if you’re still finding it tough, homeownership doesn’t have to be a solo venture. Many millennials are teaming up with friends or family to buy multi-unit properties, duplexes, or even single-family homes. By pooling resources, you can overcome the financial barriers like down payments and mortgage qualifications, while sharing the responsibilities and costs of homeownership. Sometimes, the key to homeownership is reimagining what that home looks like—and who you share it with.
- Save Smart, Not Hard
We’ve all heard the advice to “just save more,” but in reality, life’s expenses don’t always leave much wiggle room. The good news? There are smarter ways to save for your down payment.
Start by opening a First Home Savings Account (FHSA)—it’s basically a supercharged savings account designed specifically for home buyers. With tax benefits and room to grow, it helps you build your down payment faster. And even small automatic transfers from your paycheck can add up over time. Don’t beat yourself up about not saving giant sums right away—just keep moving forward, little by little.
- Find the Right Mortgage — It’s Out There
Securing a mortgage can feel like learning a foreign language, but it’s one you can master. Don’t just accept the first offer you get. Shop around, talk to different lenders, and don’t be afraid to ask questions. Even a slight drop in your mortgage rate can save you thousands in the long run.
And for those of you freelancing, gig-working, or juggling multiple jobs—lenders are starting to catch up. There are more flexible mortgage options for those with unconventional income streams, so explore what’s out there and don’t be discouraged if your path isn’t a traditional 9-to-5.
- Partner with a Real Estate Agent Who Gets You
Buying a home is one of the biggest decisions you’ll make, and it’s not something you have to figure out solo. A real estate agent who understands your unique situation can be a huge asset. They know the market, can guide you to neighborhoods you might not have considered, and help you spot hidden gems. And more importantly, they’ll have your back when things feel overwhelming.
The Journey Is Yours
You’re part of a generation that’s already weathered economic storms, adapted to changing career landscapes, and redefined what success looks like. Homeownership might feel like one more mountain to climb, but it’s one you can summit. Start small, stay informed, and trust that with patience, smart decisions, and the right support, your dream of owning a home is within reach.
So here’s to breaking through the barriers—and building not just a home, but the life you’ve been working toward.
