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The U.S. Federal Reserve recently suggested that young Americans may be wise to delay the purchase of a home. Given Canada’s surging home prices, young Canadians should be even more inclined to consider the advice to put off home ownership.

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The Toronto Real Estate Board says the market is on pace for a record year, and while the average sale price of a detached home was $996,970 in July, that is still a 13.3 per cent increase from a year ago

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In a report from the St. Louis Fed, titled “The Demographics of Wealth,” the authors raise concerns that buying a home too early is putting young families on a trajectory to be poorer than all previous generations. It was released earlier this year and is based on data collected from 40,000 households between 1989 and 2013.

Delaying home ownership is a solution that they put forth, suggesting that millennials “delay purchase of a home with its attendant debt burden until it (is) possible to buy a house that (does) not make the family’s balance sheet dangerously undiversified and highly leveraged.”