What generation is buying real estate?

What generation is buying real estate?

There are many times when the different generations in Canada don’t see eye to eye. However, right now they are all in agreement on one thing, that real estate is a good investment. From Baby Boomers to Generation Z, there is a growing confidence in the market, with approximately 49% of urban Canadians expecting real estate to perform as well as or better than other financial investments within the next year. This optimism increases to 60% when considering a decade-long period**. We too are hopeful of our market as we head into 2024.

It’s of no surprise that currently, baby boomers dominate the housing market. This generation owns a value of approximately 18 trillion in real estate compared to 5 trillion for millennials (according to a recent study by Redfin). However, this shift of wealth is likely to change as Baby boomers pass wealth onto Generation X who then share this with Millennials. This along with government incentives and improved affordability, make Millennials the generation most likely to buy homes.

We find it interesting to understand how the different generations buy real estate and what attributes they are looking for when purchasing a home. These factors, along with others, help us understand our clients better and to know what type of buyer we need to market our listings to. We wanted to share a bit of insight into what the different generations trends are:

Baby Boomers (born 1946 to 1964)

• Look for classic furniture, quality construction that shows sophistication
• Likely opt for renovating their family home and staying in it longer than downsizing right after retirement (moving later in life 70’s perhaps and not in 50’s)
• Large kitchens are very important

Generation X: (1965 to 1979)

• Prefers large kitchens as a crucial feature in home buying
• Like lots of bedrooms and large outdoor spaces for their families to enjoy

Millennials: (1980 to 1994)

• Favors large living room spaces for entertainment and social gatherings over large kitchens
• Lean toward properties with multi functional spaces, updated kitchens and clean sight lines plus great locations
• Minimalist features

Generation Z: (1995 to 2012)

• Shares Millennials' preference for move-in ready homes with a clean minimalist spaces ready to decorate
• Prefer large gathering spaces over large kitchens
• Search mainly for homes on social media outlets vs all other generations on standard real estate websites

As we come to the end of 2023, we want to thank you for your continued support . We feel so fortunate to be a part of this incredible community, working alongside wonderful people who we are proud to call both clients and friends. Wishing you a wonderful holiday season filled with joy and peace. Remember, we are always here if you need anything.

Happy Holidays from our family to yours

Shannon & Tamara