With all the focus on Millennials entering the market, we’ve slightly turned an eye to the next largest group looking to purchase a home. A group that will soon outnumber Millennials within a year…Gen Z.
Looks like the tide-pod-eating days are over, and this generation is all grown up. According to a new survey conducted by RE/MAX found that while 75 per cent of Gen Z in the GTA are extremely stressed when thinking about buying a home, nearly 50 per cent of them, aged 18-24, would like to own a home in the GTA in the next few years. The survey, which was completed by over 300 respondents in Ontario, also stated that while there is desire to buy a home, many Gen Zers feel undereducated about the housing market and are looking to gain more interest from realtors and other industry educators to learn more. “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,” states Elton Ash, VP of RE/MAX 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 education is important, Christopher Alexander, Executive VP of RE/MAX Ontario-Atlantic, states that it is up to financial institutions and industry professionals to educate this generation and reach them through platforms they visit frequently, such as social media. “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,” concludes Ash.
Currently, young home buyers are looking towards more affordable properties outside of the city for their first home, as core city prices are increasing. According to the report, it is vital that government plays a very involved role to ensure the suburban communities that these young home buyers are moving to, are well connected to urban centres to ensure there is no isolation for these groups.
In addition to the above findings, the survey also found that 72 per cent would use savings/RRSPs for down payments, while 39 per cent would take out a loan. Additionally, 29 per cent stated they would get the money from their mom’ n’ pop’ shop, and 10 per cent would use their inheritance fund.