Sotheby\u2019s and the Mustel Group have conducted the first in-depth study on the housing desires and preferences of Canadians who fall into the category of Generation Z \u2014 that means anyone born between 1993 and 2011, according to Statistics Canada.<\/p>\n
The data was taken from just over 1,500 Canadians between the ages of 18 and 28 in four major cities : Toronto, Montreal, Calgary and Vancouver. According to the report, 75 percent of Generation Z urban residents are likely to purchase and own a primary residence. 49 percent of that same group said they felt very likely to do so, while 11 percent already owned a home.<\/p>\n
Like many other age groups, Generation Z is facing an uphill battle when it comes to saving for a down payment. Many other factors are eating away at their opportunities to save. 28 percent reported that paying for the current living expenses was a financial burden impeding their down payment savings progress. 15 percent said that continuing to pay off student loans was a major factor. 6 percent said they were providing financial assistance to their parents. The same amount reported they were paying off a significant amount of credit card debt.<\/p>\n
These other expenses are contributing to the large percentage of Gen Zers who believe they will not be able to achieve their housing goals. Rising housing costs is a major factor. 82 percent of those surveyed said they are worried that they will not be able to purchase in the city of their choice due to skyrocketing prices. 38 percent labelled themselves \u201cvery worried\u201d for the same reason.<\/p>\n
A further breakdown of each demographic demonstrates the issues facing this age group in their respective cities.<\/p>\n
Montreal<\/strong> Toronto<\/strong> Calgary<\/strong> Vancouver<\/strong>
\nCompared to other metros like Toronto and Vancouver, Montreal remains relatively affordable and its economy is on the upswing. The mindset of Gen Zers living in this city reflects that fact. 79 percent of Montreal Generation Z residents say they are likely to purchase a primary residence in the city in their lifetime. 57 percent reported that they are very likely to do so. Eight percent already own a home. Montreal Gen Zers are keen to obtain a single-family home in their peak earning years if budget is not a concern, with 64 percent falling into this category. 13 percent would prefer an attached home while 10 percent would want a duplex or triplex unit. 13 percent are hoping to purchase a condo in their peak earning years. Despite Montreal\u2019s financial benefits, this group is aware that housing prices are rising quickly. Of those who have not purchased their first home, 80 percent are worried they won\u2019t be able to do so in the community of their choice because of costs. 36 percent classify themselves as \u201cvery worried.\u201d<\/p>\n
\nThe lack of affordable housing in the nation\u2019s largest city is having a major impact on Generation Z residents\u2019 outlook on the future. 84 percent of those who have not purchased a primary residence are worried that they will be unable to afford it in their lifetime. 41 percent said they are \u201cvery worried\u201d for the same reason. 26 percent report that paying for their current living expenses has been a major hindrance to their ability to save for a down payment. 52 percent have already abandoned all hope of being able to afford a single-family home. Current single-family homes in Toronto sit at an average of $1.5 million. 37 percent of those surveyed said their single-family home goals were crushed by rising home prices, rather than the preference of a different type of home or the desire to rent instead. 26 percent claimed that a condominium will likely be their first home purchase.<\/p>\n
\nCalgary\u2019s economy is rapidly diversifying and its housing prices are among some of the most affordable in the metros. Calgary Gen Zers are feeling very optimistic about their future and their ability to secure the primary residence of their choice. Calgary\u2019s affordable housing market is helping the city hang onto its young residents, and others are now flocking to the city to take advantage of the options Calgary offers. 78 percent of Gen Z Calgarians report that they are likely to purchase a home in their lifetime. 53 percent said they are \u201cvery likely\u201d, while 12 percent already own a residence. Confidence in the ability to obtain a single-family home was the highest out of all four cities surveyed. 50 percent indicated that a single-family home would be the most realistic choice for their first dwelling. These types of homes currently average $540,900 \u2014 a fraction of the going rate in other cities such as Toronto and Vancouver.<\/p>\n
\nVancouver\u2019s absence of affordable housing combined with the highest cost of living in the country has put the squeeze on the dreams of Gen Zers out west. The desire for home ownership remains strong, but myriad obstacles stand in the way of achieving that goal. Paying for current living expenses was the highest among the four cities surveyed, with 33 percent reporting it as a problem when it came to saving for a down payment. 12 percent said that paying off student loans was also an issue. Vancouver also ranked the lowest in the country for realistic expectations of securing a single-family home as a primary dwelling, with only 33 percent making that claim. But the hunger for single-family homes is legitimate \u2014 68 percent said that they would make the purchase in their peak earning years if budget was not a consideration. Current single-family homes in Vancouver are selling for an average of $1.85 million. 82 percent of Vancouver Gen Zers who have not purchased their first home are worried about their ability to do so in their lifetime, and 40 percent label themselves as \u201cvery worried.\u201d<\/p>\n