Younger generation, ages 18 – 24, in Canada's hottest housing markets share their views on home ownership and foreshadow the future of real estate
67 per cent of Gen Z in Ontario and British Columbia are stressed when thinking about purchasing a home. In the Greater Toronto Area and Greater Vancouver area this is higher at 75 per cent in the GTA and 71 per cent in the GVA
46 per cent of Gen Z in Ontario and British Columbia who don't own a home, would like to buy one in the next few years
TORONTO and KELOWNA, BC, Aug. 30, 2018 /CNW/ - With real estate continuing to be a hot topic, what do near-future homebuyers in Canada's hottest markets have to say? A new RE/MAX survey conducted by Leger found 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 Millennials within a year and as such, this generation will have a significant impact on the housing market over the next 20 years. With the mounting cost of home ownership in Ontario and British Columbia it is no surprise that 38 per cent of respondents expressed no desire to own a home. However, the survey also found that about half of both Gen Z groups in B.C. (50 per cent) and Ontario (45 per cent) 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 (GVA) and 51 per cent in the Greater Toronto Area (GTA) 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 Executive Vice President, 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. In the GTA and GVA this rate is 42 per cent and 51 per cent, respectively. 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, Executive Vice President 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."
Despite the anxiety felt by many Gen Zers toward the prospect of home ownership, more education and help from the right team of professionals could dispel the fears and assist them in making a sound investment. It is expected that this generation will have a big impact on the Canadian real estate market in the next two decades. 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.
Additional Findings from the 2018 Generation Z Leger Survey
The survey also found that 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
39 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
3 per cent are against renting
8 per cent feel it is something they should do
About the RE/MAX Network
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Over 120,000 agents provide RE/MAX a global reach of more than 100 countries and territories. RE/MAX is Canada's leading real estate organization with more than 20,000 Sales Associates and over 900 independently-owned and operated offices nationwide. RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a subsidiary of RE/MAX Holdings, Inc. (NYSE: RMAX). With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised millions of dollars for Children's Miracle Network Hospitals® and other charities. For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.ca.
About RE/MAX INTEGRA and RE/MAX INTEGRA, Ontario-Atlantic Canada
RE/MAX INTEGRA, founded in 1980, is a privately held company by Canadian entrepreneurs. With regional headquarters in Toronto, Boston, Minneapolis, Indianapolis, Zug, and Vienna, RE/MAX INTEGRA represents nearly a third of all RE/MAX Sales Associates worldwide. The company was founded on the premise of providing outstanding service and support both at the regional level and to the end consumer. The Ontario-Atlantic Canada region has surpassed 10,000 quality Associates; The US regions — New England and the Midwest (including the following states: Minnesota, Wisconsin and Indiana) – account for more than 6,500 Associates with over 2,600 and 3,800 Associates respectively; and the European region leads with more than 16,000 Associates. For more information about RE/MAX INTEGRA, visit www.remaxintegra.com
About the Survey
Leger is the largest Canadian-owned full-service market research firm. A survey of 200 Generation Z's in British Columbia and 301 Generation Z's in Ontario, 18-25, was completed online between August 20-27, 2018 using Leger's online panel, LegerWeb. Leger's online panel has more than 400,000 members nationally and has a retention rate of 90%. A probability sample of the same size would yield a margin of error of +/- 4.4%, 19 times out of 20.
SOURCE RE/MAX Ontario-Atlantic Canada
For further information: and to coordinate interviews, please contact: Danielle Scott, O. 416-934-2127, E: [email protected]; Western Canada: McCall Capozzi, O: 250-860-3628, E: [email protected]; Ontario and Atlantic Canada: Lydia McNutt, O. 905-301-5980, E: [email protected]