TORONTO – South of the border, much analysis has been done on the home ownership aspirations of “Generation Y” (also known as “millennials”) – a group that the Ontario Real Estate Association (OREA) defines as having been born between 1981 and 1995.
Thanks to new poll results released by OREA on August 3, we now have access to updated data on the demographic’s real estate goals here in Ontario.
The biggest finding may surprise some: millennials are very ambitious in their home ownership goals, with 24 per cent indicating that they are “likely” to purchase a home within the next two years. For comparison, only 18 per cent of “Generation X” respondents (born between 1965 and 1980) gave the same answer.
When asked which type of property they would be most interested in purchasing, the majority (51 per cent) responded that a detached home – currently the rarest listing type in the City of Toronto – would be their first pick, followed by:
- Condominium apartment (28 per cent)
- Semi-detached home (18 per cent)
- Row-house/townhouse (13 per cent)
Even though detached homes are currently the rarest listing type in the City of Toronto – with sky-high price tags to suit – they are also the favoured home type for 63 per cent of aspiring “Generation X” buyers.
“Based on [millennials’] intentions to buy, and the kind of real estate they’re looking at, it is evident that ‘stage-of-life’ is a motivating factor,” explained OREA president Ray Ferris.
“Also, given the strength of real estate markets lately, it is understandable that a growing number of millennials would like to own a (detached) home – and why so many believe real estate is a good investment.”
38 per cent of the respondents were aspiring first-time buyers, who cited “a desire to own a home of my own” as their motivation. (By contrast, Generation X respondents’ biggest driver was “long-term investment value.”)
The numbers also show that a solid percentage of Generation Y own their own homes already, and are planning to list in the near future. 25 per cent of respondents say they are likely to sell their home in the next two years (up 15 per cent year-over-year), while 28 per cent listed “desire for a larger home” as their motivation for moving within two years.