Toronto and Vancouver Are Terrible Places For Millennials

You’ve just graduated, and you’re ready to take on the world. Default move: Go to Toronto or Vancouver, because that’s where the big money is in Canada! Although, word on the street is that Millennials aren’t doing so hot in those places. Being the tenacious monkeys we are, we sifted through the numbers and see how the “average” family that wants to pursue home ownership fares in six urban centers across Canada, and you won’t believe what happened next…

Just kidding! You already know the average person in Vancouver is straight f**ked. It has been transformed into a playground for the ultra-wealthy, with little to no industry growth in BC except for real estate and low-paying service sectors like retail and restaurant employment. You also know that Toronto’s median income has only grown 0.38% over the past 30 years, which means there isn’t a whole lot of wealth being created for the average person there. What we didn’t know was how much more money homeowners in other cities get to keep monthly, which can greatly increase the quality of life both now and during retirement.

Income And Home Ownership

We took the median income and compared it to local real estate board data for composite home prices, and compared how those incomes would fare with a 25 year mortgage. We also removed income tax using the local provincial estimates (because the feds made that money, you didn’t), but it’s an estimate that changes with various factors in your household such as tax credits, and the number of taxbreaks kids you have.

The Numbers

It’s clear looking at these numbers, two of Canada’s urban hubs are leaving anyone that falls into the median income range in a tough spot. If you live in Vancouver, you’ll actually need to borrow $690/month if you earn a median income, and want to purchase a benchmark home (this includes condos btw). That’s before you purchase “frivolous” things like transportation and food. You would probably do a little better in Toronto, where you’ll have a cool $265/month to make ends meet. Hopefully you don’t need a monthly transit pass ($141) to get to work.

I honestly thought I would never say this, but if your job isn’t dependent on being located physically in Toronto or Vancouver, you might want to look at moving to a few of the other Canadian cities. That “big city” income has all but disappeared, and so too have many of the opportunities people have previously sought. Missing out on the late night trips to Poutini’s might be a drag, but at least when you do it on your vacation, you won’t need to finance the meal at a 19% interest rate.

If Halifax, Ottawa, Calgary, or Montreal wanted to turn into boom towns for Millennials, there’s never been a better opportunity to attract them. Just explain to them what you’ve got, because Toronto and Vancouver are still boasting about the opportunities they created 30 years ago – and most young people are rightfully starting to get a little skeptical.

Sources: StatsCan, CREA

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