A looming transfer of $1 trillion from baby boomers to their millennial and Generation X children in Canada is expected between 2023 and 2026, primarily stemming from real estate gains. Experts predict significant impacts on the economy, particularly in housing markets in cities like Toronto and Vancouver. As younger generations utilize these funds for home purchases, demand pressure may further inflate housing prices, especially given existing shortages. CIBC reports a notable rise in financial assistance from family for first-time homebuyers, signaling shifting dynamics in wealth distribution and its implications on the housing landscape.
In 2023, Canada is witnessing a $1 trillion wealth transfer from baby boomers to millennials and Generation X, driven mainly by rising real estate values.
Experts warn that this unprecedented wealth transfer could significantly shape the Canadian economy and social structures as it unfolds in the coming years.
Keith Willoughby describes the transfer as a 'trillion-dollar tsunami,' predicting that the money will funnel back into the housing market, escalating home prices further.
With 31% of first-time homebuyers relying on family financial support in 2024, the trend of increased monetary gifts reflects deepening intergenerational wealth ties.
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