Forget millenials, it’s time to talk about Generation Z. Okay, don’t forget millennials, they are clearly still an important demographic when it comes to the economy and influence on the housing market. But, a recent survey from RE/MAX has some interesting data about Gen Zers and their homeownership plans and goals.
First of all, who is considered part of Generation Z? Those born between the mid-1990s and the mid-2000s are Gen Zers, currently 18 to 24 years old.
The RE/MAX survey, conducted by Leger, focused on Gen Zers in British Columbia and Ontario, Canada’s two hottest housing markets. The survey found that 67% of Gen Zers are stressed by the thought of purchasing a home. In the Greater Toronto Area, the share increases to 75%.
Though the thought of buying a home is stressful, 46% of Gen Zers who don’t currently own a home would like to buy in the next few years. In the GTA, only 42% are looking to buy in the next few years.
A whopping 38% of Gen Zers have “no desire” to own a home, while 50% admit that they have limited knowledge of the housing market and would like 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 homeownership,” says Elton Ash, Regional Executive Vice President, RE/MAX of 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 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 homeownership.”
Why is this all so important? According to RE/MAX, Gen Zers will outnumber millennials in a year’s time, which means they will have a heavy impact on the housing market over the next couple decades.
“While the prospects of homeownership may seem daunting, that doesn’t mean that Generation Z should give up hope,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX INTEGRA Ontario-Atlantic Region. “It will be more important than ever for financial institutions and real estate professionals to educate this generation and reach them through the platforms they frequent, such as social media and online.”
Gen Zers are the future homebuyers that the industry must be prepared for. The fact that 38% have no desire to own a home is interesting. We wonder what share of millennials in B.C. and Ontario currently have zero desire to buy a home.