Some people in the demographic known as Generation Z (ages 18 to 24) may still be in their teens, but in Ontario and British Columbia, a new RE/MAX survey shows that almost half (46 per cent) of respondents who don’t currently own a home would like to in the next few years. In the Greater Vancouver Area (GVA) and Greater Toronto Area (GTA), this rate is 51 per cent and 42 per cent, respectively.
The RE/MAX survey, conducted by Leger, found that nearly 50 per cent of Gen Zers polled in BC and 45 per cent in Ontario say they have limited knowledge of the real estate market and would like to learn more.
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. In the GVA and GTA, this is higher at 71 per cent in and 75 per cent, respectively.
“While the prospect of homeownership 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.
“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 homeownership,” says Elton Ash, regional executive vice-president, RE/MAX of Western Canada. “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 homeownership.”
It is expected that this generation will have a big impact on the Canadian real estate market in the next two decades.
- 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 would use savings/RRSPs
- 39 per cent would take out a loan
- 29 per cent would get help from family
- 10 per cent would use their inheritance
According to the Gen Z in Ontario and BC 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 think it’s a good investment
- three per cent are against renting
- eight per cent feel it is something they should do