Just over half of Gen X and Gen Y Ontario residents who are planning on buying a home in the next year are looking to buy a detached home, according to the Ontario Real Estate Association. 18% of gen Xs are looking to buy a home in the coming year, while a quarter of gen Ys are planning on making a purchase.
51% of gen Ys said they are most likely to buy a detached house, followed by a condo, then semi-detached house and finally townhouse. 63% of gen Xs said they were more likely to buy a detached house, followed by semi-detached, then condo and finally townhouse.
Gen Ys are those born between 1977 and 1994, while gen Xs are those born between 1966 and 1976.
“Based on their intentions to buy, and the kind of real estate they’re looking at, it is evident that ‘stage-of-life’ is a motivating factor for gen Y,” said the president of the Ontario Real Estate Association, 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.”
Ferris continued, “This uptick in consumer confidence is driven by the very strong gains we’ve seen in home values in the last year. For those gen Ys and Xs who plan to sell, they will surely experience those gains themselves.”
Other highlights from the research include:
81% of gen X and 77% of gen Y feel that real estate is a good investment, up from 72% and 70% last year.
The top three motivations to buy a home for gen Y are “desire to own a home of my own”, “desire for a larger home” and “long-term investment value”. Gen X also answered that “change in family situation” was a strong motivator.