Interest rate hikes are on their way with the Bank of Canada set to raise its benchmark rate later this spring, causing both a stir among prospective home buyers trying to beat the clock and warnings of plummeting home prices after rates rise.
However, despite the uncertainty optimism remains high, and recent surveys indicate that both Gen Z and new immigrants are hungry for homeownership. Read about those stories, as well as fractional real estate investment and condo amenities, in Livabl’s weekly roundup of Canadian housing news and trends.
Increased optimism about Canada’s housing market: According to recent polling by Bloomberg News, 64 per cent of Canadians expect the value of real estate in their neighbourhoods to increase during the next six months. That number represents a four per cent increase from last week’s polling data, showing surprisingly high confidence in Canada’s housing market despite forecasts that rising interest rates could cause property values to decline by as much as 20 per cent.
Gen Z still keen on owning a home amid rising costs: While concerned about affordability, Generation Z — encompassing those born between 1993 and 2011 — shares the same desire for homeownership as previous generations, according to a recent report by Mustel Group and Sotheby’s International Realty Canada. The Toronto Sun breaks down survey results reflecting Gen Z’s outlook on real estate, including 75 per cent of respondents believing they will own a primary residence during their lifetime.
Survey finds new immigrants hungry for homeownership: A recent survey by Ipsos Public Affairs revealed that nearly half of new immigrants living in the Toronto area are home buyers within their first five years of arriving in Canada. The Globe and Mail crunches the numbers, which indicate that newcomers are more interested in homeownership than Canada’s non-immigrant population and willing to pay more to achieve it.
Taking a measured look at fractional real estate investment: Several fractional real estate investing startups have launched in recent years, offering the chance to enter the market without high costs or lengthy commitments. While they might appeal to younger do-it-yourself investors, some critics warn that the investment model carries higher risk than a real estate investment trust. The Toronto Star examines the benefits and drawbacks, and what the future might hold for fractional investment.
Condo amenities are being raised to the roof: Utilizing space that used to be reserved for building maintenance and little else, a growing number of condo developments are using rooftops for amenities including community gardens, swimming pools, fire pits and fitness spaces. The National Post details a trend that has accelerated during the pandemic, as developers look to the roof to entertain tenants and establish community connections.
