A new report out from the Canada Mortgage and Housing Corporation shows a shifting dynamic in the Hamilton market.
Since 2012, the echo generation, comprised of those born between 1972 and 1992, have out-numbered baby boomers.
Senior Market Analyst Abdul Kargbo says house prices and lifestyles have lead to a delay in the purchase of single detached homes for this group.
“They will be shifting their demand to townhouse, condominium, apartment,” he said.
Meantime, the younger segment of this population is strengthening the rental market or living with parents.
In the next 10 to 20 years Kargbo anticipates that this generation will be ready to jump into single detached homes, which will coincide with downsizing by baby boomers.
One issue that has come to the forefront for those living in Hamilton is the influx of buyers from the GTA.
According to Kargbo, 53 per cent of those Toronto buyers are in a position to purchase a single detached home.
This rush of activity from outside the city, he says, has pushed the average price of a home up significantly.
“That to some extent, tends to price out some of the locals,” he said. “And some of those locals are shifting into places like Brantford, Niagara and Caledonia.”
Kargbo expects this kind of movement into Hamilton to continue for at least the next two years.
In terms of long term projections, he says the data shows the rate of price growth sliding down to about 3 per cent per year.