A new Sotheby’s study has found that the white picket fence is still the gold standard for young Canadians.
If money were no object, 83% of young families would buy a detached home. Only 5% would choose to live in a condo.
Affordability is a concern though – rising prices and interest rates have prompted 45% of young respondents to claim they had given up on their dreams of owning a single family home.
The trend towards condo living is an indication of millennials’ urban preferences, but rather a result of prohibitive pricing in many of Canada’s metropolitan areas.
The study looked at young urban families – those in which the eldest adult is between 20 to 45 years of age, in Canada’s largest metropolitan cities: Toronto, Montreal, Vancouver and Calgary. The study relied on a survey of 1,743 families in the four metro areas, carried out by the Mustel Group. It took place from Aug. 9 to Sept. 6 of this year.
Key findings include:
- Most families prioritize space over other buying criteria – value per square foot took precedence over design, features, or even location
- Only 18% of families planned to buy a townhouse in the city centre, while 21% set their sights on the suburbs
- 43% of families who own real estate but not a single family home have given up on ever buying one, due to the high purchase cost.
- In Vancouver, that figure shot up to 55%
Brad Henderson, president and CEO of Sotheby’s Canada, notes that the price of housing has risen faster than wages have, for which the dream of detached home ownership is becoming less attainable for young families.
Many of those who do purchase detached homes had received financial gifts or inheritances from their families. Economists have raised an alarm about the growing reliance of young homebuyers on their parents help – it has been argued that this trend would create a disparity where only children of wealthy families would attain home ownership.
Despite all this, young Canadians interviewed in the study have not fully given up on the real estate market as an investment strategy.
78% claimed they expected real estate to appreciate as fast or faster than other financial investments.
95% of respondents claimed they were “very” or “somewhat” satisfied with their living situation.
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This article, What Do Young Canadian Real Estate Buyers Want? – A Study, appeared first on Shupilov News.