A new report from Mustel Group and Sotheby’s International Realty Canada indicates that future housing demand in Vancouver will be greatly affected by neighbourhood safety, among other key location-based factors.
The report is titled Location, Location, Location: Generation Z Trends, and it highlights that demand will be greatly influenced by the expected return to the workplace, along with a preference for balance between both urban and suburban living.
1,502 Gen Z Canadians between the ages of 18 and 28 were surveyed, located in Vancouver, Calgary, Toronto and Montreal.
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Buying a home that’s close to work was ranked as a major priority among those who were surveyed, revealing that nearly half of Vancouver Gen Z respondents (43%) have that preference.
“Previously released results from Mustel Group and Sotheby’s International Realty Canada survey of urban Generation Z adults have already revealed that young Canadians have a high level of confidence in real estate and intend on purchasing a home,” said Josh O’Neill, General Manager of Mustel Group, in a statement.
“This new report uncovers insights into where they plan to buy their first home, and the factors that are driving this important life decision.”
The only priority that surpassed the proximity to the workplace preference had to do with safety, with 54% of Vancouver respondents saying that neighbourhood safety was a key location characteristic.
How much first-time Gen Z home buyers expect to pay
The survey also asked first-time Canadian Gen Z home buyers what they expect to pay.
30% expect the price of their first home to be in the range of $350,000 to $499,999, while 26% expect to pay between $500,000 and $749,999.
In terms of when they expect to buy these relatively affordable homes, 37% expect to buy in less than five years, while 43% expect to buy between five and ten years from now.
Other priorities include proximity to a grocery store (38%), transit friendliness (39%), living close to family (40%) and walkability (31%).
Surprisingly, cycling friendliness was only reported as a key consideration by 7% of respondents. Only 6% care about proximity to clubs and bars.
The survey also revealed an interesting split between respondents who planned to purchase a home in a major city (36%) versus those who plan to buy a home in a suburb outside of a major city (44%).
Nine percent of Vancouver respondents plan to buy their first home in a small town, and 4% plan to purchase in a rural area. 6% have not decided what type of community they’ll be purchasing their first home.
“Our research signals that for Generation Z, buying their first home in a neighbourhood close to their workplace will remain a top priority, regardless of whether they plan on purchasing in a major city or suburb,” said Don Kottick, president and CEO of Sotheby’s International Realty Canada.
“This has significant implications for how cities and suburbs should approach planning in order to enhance the quality of life and housing for future generations.”
With files from Zoe DeMarco