A generational analysis of catalysts to buying a home.
The article on generational differences in home-buying priorities can draw on unique insights into how cultural, financial, and societal shifts have influenced attitudes toward homeownership across generations.
1. Baby Boomers (1946–1964) Boomers typically pursued homeownership as a means of achieving stability and providing for their families. During their peak buying years, homes were relatively affordable, and the goal was often to settle down in a family-friendly environment. Many boomers have since paid off their mortgages and view their homes as their primary financial asset for retirement. Their approach to real estate reflects traditional values of long-term investment and community establishment.
Baby boomers own about 41% of all homes in Canada:
Homeownership rate by age: In 2021, the homeownership rate for people aged 55 to 74 was 62.6%.
Number of properties owned: 75% of boomers own their own home, and 17% own more than one property.
Real estate wealth: 40% of boomer homeowners have at least 50% of their net wealth in real estate.
Here are some other things to know about boomers and real estate in Canada:
Selling homes
The sell-rate for homeowners between ages 85 and 89 is about 55%, rising to about 72% for ages 90 to 94. However, boomers are expected to start selling their family homes later than earlier generations.
Renovating
A majority of boomer homeowners would prefer to renovate their current property over moving.
Real estate investors
Boomers are the majority of small investors in much of the country, up to 67% in some provinces.
Large homes
Baby boomer households with no children in the home own 28 percent of the nation's large homes (those with three or more bedrooms).
2. Generation X (1965–1980) Known for their pragmatism, Gen Xers often bought homes as both investments and a way to meet expectations set by their boomer parents. With careers stabilizing during their prime earning years, many sought suburban homes that balanced affordability with proximity to urban amenities. Real estate became a dual-purpose tool: building wealth and meeting familial expectations.
According to Redfin, 72% of Gen Xers in Canada owned a home in 2023, which is higher than the 55% homeownership rate for millennials.
Here's some other information about homeownership and Gen X in Canada:
Recreational properties
A RE/MAX report found that 47% of Gen X brokers surveyed said they own or plan to own recreational property. The report also found that Gen X is driving demand for recreational property in Canada.
Home size
Gen Xers have purchased larger homes, averaging 1,940 square feet, which is the second-largest home size among all generations.
Homeownership by age
In 2021, the homeownership rate for people aged 40 to 54 was 53.6%.
Homeownership by generation
At age 26, 32.5% of Gen Xers owned a home, compared to 30% for Gen Zers, 31% for millennials, and 35.6% for boomers.
3. Millennials (Generation Y, 1981–1996) Millennials faced unique challenges, including student debt, higher housing costs, and stagnant wages, delaying their home-buying journeys. However, many relied on financial assistance from parents, such as help with down payments. Millennials often prioritize lifestyle over location, opting for urban homes or condos that align with their work-life balance, even if it means smaller spaces.
In 2022, 57% of Canadian millennials were homeowners, making it the largest ownership gain for any generation in the last five years. However, millennials still have the lowest homeownership rate in Canada, with those under 40 falling below the national average of 66.5%.
Here are some other statistics about homeownership among millennials in Canada:
Homeownership plans
51% of Canadian millennials plan to purchase a home within the next five years.
Relocation
Half of non-homeowner millennials say they would have to relocate to own a home.
Cost of living
72% of Canadian millennials would continue living in their current city or town if the cost of living wasn't an issue.
Parental property ownership
The homeownership rate of millennials whose parents owned more than one property was 23.8%, nearly triple the rate of millennials whose parents did not own a home.
Confidence gap
54% of millennials indicate they want clearer information and support from financial institutions.
Ontario millennials
31% of Ontario millennials say they don't believe they'll ever own a home.
4. Generation Z (1997–2012) This generation approaches homeownership with a mix of caution and creativity. Many Gen Zers remain at home with their parents longer, saving money with the intent of buying homes outright or as early inheritance. Their focus tends to be on financial independence and sustainability, favoring smaller, more efficient living spaces when they do enter the market. They also exhibit an interest in non-traditional property paths, such as co-buying with friends or investing in pre-construction properties.
In 2023, 26.3% of adult members of Gen Z in Canada owned a home.However, a majority of Gen Z are still planning to buy a home in the next five years:
Homeownership rate
The homeownership rate for 26-year-old Gen Zers is 30%, which is lower than the rates for millennials, Gen Xers, and boomers at the same age.
Homeownership plans
58% of Canadians between 18 and 43 years old are determined to buy a home in the next five years.
Confidence gap
63% of Gen Z and 54% of millennials indicate they want clearer information and support from financial institutions.
Online mortgage application
35% of Gen Z would like to complete the entire mortgage application process online.
Here are some other things to know about Gen Z and homeownership:
Financial sensibility: Gen Z prioritizes financial sensibility and has a conservative approach to money management.
Innovative approaches: Gen Z is more inclined to explore innovative approaches to homeownership.
Financial insight: Gen Z wants to learn the best tactics for saving money quickly and understand methods to increase their savings.
These trends demonstrate how economic conditions, housing market dynamics, and societal expectations shape generational approaches to real estate. To add depth to the article, consider discussing how policy changes and emerging housing models (e.g., co-living or fractional ownership) are redefining homeownership for younger generations. Highlighting these insights can appeal to readers navigating their unique paths to homeownership.
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