Decades of Home Building Experience. Looking for your next exciting investment opportunity? Experience with Zonix
These four cities were also the subject of the 2018 Modern Family Home Ownership Trends Report. The Report, by Sotheby’s International Realty Canada and the Mustel Group, examines the challenges, preferences and home buying habits of 1743 young, urban families. “Young” for the purpose of this report means families made up of adults between 20-45.
“Young families are much more influential in Canada’s metropolitan real estate markets than many realize. With 9.1 million Canadian Millennials now entering the partnership, marriage and parenting stages of the family life cycle, the ranks of these ‘modern families’ are swelling,” says Brad Henderson, President and CEO, Sotheby’s International Realty Canada.
Throughout the report, the broader topics were narrowed down to the likes of home feature and location priorities, financial challenges and trends and levels of real estate market confidence. These were also examined across regional nuances and traits of affluent families versus those with average incomes.
A whopping 83% of the homeowners surveyed indicated a preference for detached single-family homes. If their budget was not a determining factor, only 5% shared a preference for owning a condominium.
This seems to point to the need for cities to address demands for single-family home ownership with development that goes beyond higher density housing. It also seems to be a remnant of a deeply held social value; that owning a single-family home represents financial success and security for Canadian families. Single-family home ownership has also been seen as a marker of achieving a traditional, middle-class lifestyle for generations.
Which is why it’s not surprising that in Canada’s major metropolitan centres, demand for higher density properties is being driven by homebuyers outside of the modern family demographic. These individuals are noted as being able to place personal preference over necessity.
This isn’t just a casual observation. According to Shuan Hildebrand, President of Urbanation, “The condominium market has performed exceptionally well during its transition from an overheated 2017. Low supply and stabilized demand should continue to provide structural support for prices.”
Urbanation’s recent study cites that new condo prices are poised to rise while construction on new projects is occurring at record setting rates.
Though there is reference to millennial families having to give up the dream of home ownership, within the report, there is also a significant amount of confidence present about real estate.
93% of modern families are “very” or “somewhat satisfied” with the home they own. 78% believe their home will outperform or match performance of their financial investments in the next five years. And 48% of this segment believes that real estate will outperform financial investments.
Read the full 2018 Modern Family Home Ownership Trends Report here.