A new Re/Max survey conducted by Leger says that nearly 51 per cent of Generation Z (age 18-24) in the Greater Vancouver Area would like to own a home in the next few years, while those in Toronto are more inclined to continue to rent or live with their parents.
Generation Z is expected to outnumber the millennial generation within a year and as such, this generation will have a significant impact on the housing market over the next 20 years, says Re/Max. Its survey found that 38 per cent of respondents expressed no desire to own a home. However, about half of both Gen Z groups in B.C. and Ontario agree they have limited knowledge of the housing market but are interested in learning more. This was especially apparent in each of the province’s hottest housing markets, with 57 per cent in the Greater Vancouver Area and 51 per cent in the Greater Toronto Area feeling undereducated.
“Gen Zers are interested in learning more, and a greater effort needs to be made to educate them about the benefits and potential risks of home ownership,” says Elton Ash, regional EVP, Re/Max of Western Canada. “As Gen Z looks ahead, it’s important that they have a trusted team and good resources to turn to, to alleviate stress and empower them in the process to becoming first-time homebuyers in the future. While the survey showed interesting trends across two of the hottest markets, the Gen Zers we speak to are eager to become informed and excited about the future of home ownership.”
The survey also found that 46 per cent of respondents who don’t currently own a home would like to in the next few years. Despite their future home-buying plans, 67 per cent of Gen Zers in Ontario and British Columbia are stressed when thinking about purchasing a home.
“While the prospects of home ownership may seem daunting, that doesn’t mean that Generation Z should give up hope,” says Christopher Alexander, EVP and regional director, Re/Max Integra Ontario-Atlantic Region. “It will be more important than ever for financial institutions and real estate professionals to educate this generation and reach them through the platforms they frequent, such as social media and online.”
Gen Zers and other young homebuyers are adapting to current market conditions by looking outside of city centres to find affordable properties. Government must also play a role in ensuring that these suburban communities are well connected to urban centres, so that this cohort doesn’t become isolated, says Re/Max.
Some additional findings from the survey:
Location (56 per cent) and safety (27 per cent) matter the most to Gen Z in Ontario and British Columbia when thinking about purchasing their first home.
When it comes to preferred methods of down payments:
- 72 per cent said they would use savings/RRSPs
- nine per cent said they would take out a loan
- 29 per cent said they would get help from family
- 10 per cent said they would use inheritance
According to the Gen Z in Ontario and British Columbia who do not currently own a home, but would like to, the top reasons to purchase a home include:
- 63 per cent think it’s a good plan for the future
- 25 per cent thinks it’s a good investment
- three per cent are against renting
- eight per cent feel it is something they should do.
