Photo: James Bombales
The Canadian Gen Z population is expected to outnumber Millennials within the next year — but do they have the same homeownership goals as older generations? Apparently yes — a new RE/MAX conducted by Leger found that nearly 51 per cent of Gen Z residents (age 18 to 24) in the GTA would like to own a home in the next five years.
But those same would-be buyers also report knowing less about the housing market than they’d like.
“The survey…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,” reads the survey. “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.”
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That lack of information, combined with historically high home prices, has resulted in a sense of worry when it comes to homeownership. Up to 67 per cent of respondents said they felt stressed when thinking about purchasing a home.
“People do see homeownership as a fantastic long term investment, but with investment comes commitment,” RE/MAX Ultimate Realty Inc. broker of record Tim Syrianos tells Livabl. “There’s also the cost associated with homeownership, that can lead to stress.”
The top reasons listed for wanting to own a home were a good plan for the future (63 per cent), a good investment (25 per cent) and a better option than renting (3 per cent).
Almost a third of respondents indicated they would use help from family to secure a downpayment (29 per cent), while 39 per cent would take out a loan and another 10 per cent would use their inheritance.
While 29 per cent may seem high, Syrianos believes that first-time buyers receiving help from family is hardly a new trend.
“That is a stat that I would actually challenge to see what it was five years ago, or 10 years ago,” he says. “I remember when I was under 30 years old looking to buy a home, my family assisted me with a downpayment. I think people lean on family, and that’s not a new trend.”