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Canadian millennials better prepared to buy homes, says report

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Canadian millennials are faring much better than those in the United States in the wake of the global financial crisis – especially when it comes to property.

According to a new report from Toronto-Dominion Bank, Canada’s relatively rapid recovery from the crisis and its strong housing market helped boost the financial prospects of millennial workers. About half of Canadian millennials own real estate – a much higher home ownership rate than in previous generations at the same age, according to a report by the Business News Network. Meanwhile, just 36% of U.S. millennials are homeowners.

And rising home values mean that Canadian millennials have, on average, nearly double the net worth of young people in the U.S., according to the report. Millennial households in Canada are worth $156,000 on average, while young households in the States are worth an average of $76,000.

It’s not all wine and roses for young Canadians, however. The report said that Canada’s high home prices have left this country’s young people deeper in debt than their U.S. counterparts, with the average Canadian millennial owing about $113,000, compared to about $83,000 for U.S. millennials. And those higher debt loads mean Canadian millennials could be more vulnerable to a housing price correction, BNN reports.

Meanwhile, TD projects that Canada’s high home ownership rate has probably peaked, while the U.S. market has most likely bottomed out and is on the road to recovery, while higher levels of postgraduate education in the U.S. will help that country’s young workers to take advantage of its improving economy.