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Gen Z buyers want to live in your cities, suburbs
Location, location, location. The mantra describes the three most important factors in determining a property’s desirability, but as the Canada Day celebration illustrated yesterday, a country as large as ours offers countless places, large and small, to settle in.
The new Location, Location, Location: Generation Z Trends Report by Mustel Group and Sotheby’s International Realty Canada reveals where the country’s latest generation of new home buyers plan to buy their first home and the factors that drive their decisions.
The survey of 18- to 28-year-olds in the metropolitan areas of Vancouver, Calgary, Toronto and Montreal shows that there is an almost even split between those planning to buy their first home in a major city (40 percent) and those who plan to buy in a major city. a suburb outside a major city (42 percent).
About one in ten expect to buy their first home in a small town or rural area and eight percent are on the fence when it comes to the community type of their first home.
In total, 41 percent plan to buy their first home in their current place of residence. This is broken down by city as follows: Vancouver (45 percent), Calgary (48 percent), Toronto (40 percent) and Montreal (38 percent).
Overall, 32 percent plan to buy within an hour’s drive of their current city. Another 11 percent plan to buy further afield but within Canada, including six percent who plan to buy their home more than an hour away from where they currently live and five percent who expect to buy in another province . Only one percent plan to buy outside of Canada, while 13 percent aren’t sure where they will buy their first home.
And the three most important factors when buying a house? Neighborhood safety, proximity to work and proximity to a supermarket are at the top of the list. Other priorities are transport friendliness, living close to family and walkability.
Only 15 percent indicate that purchasing in or near a city center is a priority. On the back come the cycling friendliness and living near entertainment venues such as clubs and bars.
Not surprisingly, changing preferences in the workplace and working from home are driving trends. “During the pandemic, the desire, need and ability to work remotely was impacted and allowed some Canadians to move to remote suburban or recreational regions to gain more space and a more desirable lifestyle,” said Don Kottick, president and CEO of Sotheby’s International Realty Canada.
“This helped drive record real estate sales across the country.”
The question of the flexibility of working from home will remain a defining issue in the workplace for the foreseeable future, but attitudes to remote work among workers and employers are changing as pandemic restrictions ease and there are differences in perspectives between generations that influence demand for work from home. will affect homes.
“Our research indicates that for Gen Z, buying their first home in a neighborhood close to their workplace will remain a top priority, regardless of whether they plan to buy in a major city or suburb,” says Kottick.
“This has important implications for how cities and suburbs should approach planning to improve the quality of life and housing for future generations.”
Do you want to be surrounded by happy people? Move to Newfoundland and Labrador, where 61.7 percent of residents report high life satisfaction. That is the highest level in Canada and is also well above the national average of 51.7 percent.
Not far behind is Prince Edward Island (59.7 percent), followed by Quebec (58.7), New Brunswick (56.8) Manitoba (56.1), Alberta (52.2) and Saskatchewan (51.2). . Rounding out the list are Nova Scotia (49.9), Ontario (48.4) and British Columbia (46.5).
Those numbers come from Statistics Canada’s most recent social survey, which surveys Canadians aged 15 and older every three months about health, wellbeing, the impact of COVID-19, activities, time use and emergency preparedness. They reflect attitudes in the first quarter of 2022. Overall, more people reported greater life satisfaction compared to the previous year. For example, in the second quarter of 2021, 42 percent of Canadians reported high life satisfaction.
Where to buy?
Zoocasa, a full-service real estate brokerage, teamed up with MoneySense, a digital magazine and financial media website, to determine the best places to buy real estate in Canada. It ranked neighborhoods and municipalities in 17 regions, taking into account average house prices, price growth over time, neighborhood characteristics and economy.
The 2022 edition of Where to Buy Real Estate in Canada found that home buyers’ priorities have shifted many times over the past two years. They abandoned urban centers in favor of surrounding suburbs, leading to high growth in regions such as Hamilton-Burlington and Kitchener-Waterloo in Ontario and Fraser Valley in BC. Prices in those regions have risen to about the national average.
According to this year’s ranking, the following municipalities offer home buyers the greatest value, with the 2021 average home prices in parentheses: Greater Moncton, NB ($302,400), North Bay ($385,100), and Quinte West and Hastings County ($547,500). The following municipalities scored lowest in terms of value and terms of purchase: Vancouver, BC ($1.23 million), Toronto ($1.02 million), and Oakville-Milton ($1.52 million).
Zoocasa also determined the best neighborhoods to live in in key cities. In the Greater Toronto Area, Durham Region ranks highest. Why? Being a relatively affordable option near Toronto, it offers plenty of employment opportunities, suburban amenities, and small-town charm. The top three Durham communities are the city center in the town of Pickering, followed by Orono and Clarington, both in the borough of Clarington.