It’s been well documented how younger people are finding it harder than ever to get onto the property ownership ladder in Canada these days, and especially in major urban city areas. Meteoric rises in home prices would have done that for any generation being in young adulthood at this time, and it is unfortunate that this is the reality. However, there’s not getting around it and young people who want to become homeowners may have to adjust their wishes or more simply just work that much harder to be able to afford a home.
The good news is that is exactly what many millennials are doing nowadays, and it really is something of a feel-good story among the few that have emerged during COVID times. A recent 2021 survey has found that nearly 48% of Canadians aged 25 to 35 currently own their home, and 1 in 4 of these homeowners purchased their property during the coronavirus pandemic.
Successful realtors are ones who have an understanding of where to best put efforts regarding their visibility to prospective clients. Given what we can learn here that more and more people in this age group demographic are buying homes, you should be changing your marketing strategies somewhat to be putting yourself in the channels that these younger people use. Social media is huge in this way of course. And our online real estate lead generation system here at Real Estate Leads can be a powerful combination here based on the fact it’s build on Internet marketing principles.
Low-Mortgage Rates Meet Lessened Competition
As mortgage rates went down to historically low levels and the competition for entry-level housing lessened, there has been plenty of young people who saw a window of opportunity and went for it. And when other millennial-aged respondents answered, 84% stated that they intend to invest in a home in the future, and 68% figure they’ll do that in the next five years.
There is also the role of measures necessary to prevent the spread of COVID-19 driving a good number of younger Canadians to buy, and this is true despite the other trend where more homeowners are themselves being dissuaded from selling. The condo market has benefitted from this, with many young people finding they need their own space if they’re going to be expected to stay home this frequently and to this extent.
The survey also found that nearly 92% of these same respondents agreed that owning a home is a good financial investment, and that went along with 40% saying that their savings have grown since the pandemic started. A lot less opportunity for spending may well be meaning a lot more savings that can go towards a down-payment on a home.
Different Approach to Homebuyer Resources
So as we know, these younger generations are supremely digitally savvy, and as such they have no problem adjusting to virtual home tours and electronics contracts that are part of the new operating realities in real estate these days. Younger buyers are extremely comfortable with doing their research online research, and that’s very different from older prospective buyers who are choosing instead to ‘wait it out’ and delaying housing upgrades until the medical crisis is more under controlled.
Regional Markets – Ontario
In Ontario, 44% of residents aged 25 to 35 own their home and of those owners 26% purchased a home since mid-March of last year.
Regional Markets – Quebec
In Quebec, of new millennial-aged homeowners, 18% purchased a home since mid-March of last year, while 28% of homeowners located in Montreal purchased their home since the onset of the pandemic, and that’s the highest rate for any city in Canada.
Regional Markets – British Columbia
In British Columbia, 49% of residents aged 25 to 35 own their home, and 27% of those purchased their home since mid-March of 2020.
Regional Markets – Alberta
Alberta takes top sport for Canada’s highest home ownership rate among those aged 25 to 35, at 56% of them. 24% purchased a home since mid-March of last year.
Regional Markets – Saskatchewan / Manitoba
The Prairie provinces have 53% of residents aged 25 to 35 owning their own home, and 32% purchased a home since March 2020.
Regional Markets – Atlantic Canada
In Atlantic Canada, 48% of residents in the surveyed age group were currently owners of their home. 42% have purchased a home since mid-March of last year, and that’s the highest rate for all regions surveyed.
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