A majority of Toronto's Generation Z have given up on the dream of owning a single-family home: report
As Toronto’s real estate market remains hot with prices rising and home sales hitting new highs, a new report is claiming that more than half of the city’s ‘Generation Z’ residents have given up on the dream of ever owning a single-family home.
The report, released Wednesday by Sotheby’s International Realty Canada and Mustel Group, surveyed 1,502 Canadians between the ages of 18 and 28 living in Vancouver, Calgary, Toronto and Montreal.
According to the report, 52 per cent of the Toronto residents surveyed do not believe they will ever buy a single-family home.
This is higher than in Montreal and Calgary, where 48 and 39 per cent, respectively, of young residents share the same sentiment, but lower than in Vancouver where 56 per cent of respondents reported having given up on the idea of single-family home ownership.
HIGHER DENSITY HOUSING MORE LIKELY
In Toronto, 82 per cent of respondents who had never before purchased a home reported feeling worried that they will not be able to do so because of rising house prices, with 38 per cent indicating they are “very worried.”
However, 75 per cent of Torontonians within this age group said that they are still likely to buy and own a primary residence within their lifetime — whether that be a condominium, apartment, townhouse or single-family home.
In fact, approximately half of those surveyed stated that their first home will most likely be a higher-density housing type.
Twenty-five per cent of respondents reported that their first home purchase will likely be a condominium, while 18 per cent said that their first home will be an attached home/townhouse and seven per cent said that their first home purchase will be a duplex/triplex.
Despite high prices and a red-hot market, the report indicates that Toronto’s Generation Z is still remaining optimistic when it comes to ownership. Seventy-three per cent said they are likely to buy a primary residence in their lifetime — in Toronto or elsewhere — and 46 per cent claimed they are “very likely” to do so.
According to the report, 11 per cent of those surveyed already own a primary residence.
TORONTO PRICES HIT ALL-TIME HIGH
In November, the GTA’s real estate market continued to rise as home sales topped a November record and average selling prices reached an all-time high.
The Toronto Regional Real Estate Board (TRREB) reported last week that 9,017 homes changed hands during the month of November, up three per cent from 8,728 during the prior November.
In addition, the average home price in the region increased to $1,163,323, an almost 22 per cent jump from $955,889 in November 2020.
According to the board, demand for all types of Toronto housing continues to outpace supply. However, the condo market, in particular, is tightening and prices are accelerating more rapidly in suburban areas.
"This speaks to the broadening of economic recovery, with first-time buyers moving back into the market in a big way this year," said TRREB's chief market analyst Jason Mercer, in a release.
"The condo and townhouse segments, with lower price points on average, will remain popular as population growth picks up over the next two years."
With files from The Canadian Press.