Nearly 48 per cent Canadians aged 25 to 35 currently own their home, and a quarter of these homeowners purchased a property during the coronavirus pandemic, according to a recent demographic survey by Royal LePage.
The pandemic has steered young Canadians along “a path to home ownership,” Phil Soper, president and CEO, Royal LePage, told Global News Thursday.
“As mortgage rates fell to historically low levels and the competition for entry-level housing lessened, young people saw a window of opportunity and went for it,” he said.
Even among non-homeowners, 84 per cent strongly intend to invest in a home in the future, with 68 per cent planning to make the move in the next five years, the survey shows.
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Soper noted that measures necessary to prevent the spread of COVID-19 may have driven “many of our younger Canadians to buy” even as the health crisis “dissuaded” many of the older homeowners from selling.
“The living situation for some young people sharing with parents, siblings or roommates became uncomfortably crowded with work-from-home becoming a day-to-day reality. The opportunity, therefore, of owning 500 sq-ft worth of personal space was more than viable to most in the current market scenario,” he said.
2:43 Bank of Canada issues warning about overheated housing market
Bank of Canada issues warning about overheated housing market
Despite the economic challenges associated to the pandemic, Canadians aged 25 to 35, have shown a healthy personal outlook, according to the survey.
While nearly 92 per cent of those charted agreed that owning a home is a good financial investment, 40 per cent said that their savings have grown since the onset of the pandemic.
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According to Soper, “no dining out, no concerts with friends or winter escapes to the sunny south” are liable for this actuality.
“The pandemic has restricted millennials in so many ways. With outdoor spending limited, savings have soared,” said Soper.
“All the unspent money,” he added, “have found its way into real estate investments.”
Furthermore, this young group has had no problem adjusting to the boosted use of virtual tours and electronics contracts set in motion by the ongoing pandemic, Soper noted.
“Younger buyers are extremely comfortable with online research, even when it comes to investing in a home, unlike older investors,” said Soper.
Older people are opting to “wait it out” and delay their “desire for a housing upgrade until the medical crisis is under control.”
A look at the regional markets
Historically low interest rates are making it more attractive for young people to invest in housing across all markets.
In Ontario, 44 per cent of residents aged 25 to 35 own their home and of them, 26 per cent purchased a home since mid-March of last year.
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Most seem interested in taking advantage of some extra savings and low borrowing costs, to invest in a property that has appreciation potential.
“Most of my 25- to 35-year-old clients have fit into one of three distinct buying scenarios over the last year: the softer condo market and low interest rates allowed renters to become owners; move-up buyers who had purchased a condominium a few years ago were able to turn that equity into a down payment on a larger property in the suburbs; or they’ve left the city altogether for a significantly larger space in more affordable places like Hamilton, Guelph, or even cottage country,” said Tom Storey, real estate agent at Royal LePage Signature Realty in Toronto.
2:05 Coronavirus: Real estate market in Ontario’s cottage country experiencing boom
Coronavirus: Real estate market in Ontario’s cottage country experiencing boom – Jul 23, 2020
Ottawa too has seen its housing market appreciate over the last few years, due in part to increased demand from both local and out-of-town buyers, many in the age range of 25 to 35.
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In Quebec, demand from buyers aged 25 to 35 has flooded the suburban real estate market over the past year, spurred by low interest rates, the ability to work distantly and the aspiration to invest in long-term quality of life.
Of the young Quebec homeowners, 18 per cent purchased a home since mid-March of last year, while 28 per cent of homeowners located in Montreal have purchased a home since the onset of the pandemic, the highest rate among the cities surveyed.
In British Columbia, 49 per cent of residents aged 25 to 35 own their home with 27 per cent having purchased a home since mid-March of 2020.
1:57 New survey finds housing prices holding strong in Greater Vancouver despite pandemic
New survey finds housing prices holding strong in Greater Vancouver despite pandemic – Jul 9, 2020
“Younger buyers have a positive association with home ownership. They see the value in it and they’ve done the math. Currently, a monthly mortgage payment can equate to little more than renting,” said Adil Dinani, sales representative at Royal LePage West Real Estate Services in Greater Vancouver.
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At 56 per cent, Alberta records Canada’s highest home ownership rate among those aged 25 to 35, of which 24 per cent purchased a home since mid-March of last year.
2:42 Calgary re-sale housing market compared to a ‘scene out of Mad Max’ amid COVID-19
Calgary re-sale housing market compared to a ‘scene out of Mad Max’ amid COVID-19 – Feb 16, 2021
While Alberta’s housing market has persistently been stable over recent years, the COVID-19 pandemic seems to have further enthused activity among younger buyers. Thirty-seven per cent of Albertans in this cohort say they’ve seen their savings grow since the beginning of the pandemic.
In the Prairie provinces, 53 per cent of residents aged 25 to 35 have their own home, out of which, 32 per cent purchased a home since March 2020.
In Atlantic Canada, meanwhile, 48 per cent of residents in the surveyed age group own their home. Of this, 42 per cent have purchased a home since mid-March of last year, the highest of all regions surveyed.
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“Within one month of the start of the pandemic, buyers in this age group came out in droves,” said Will Campbell, sales representative at Royal LePage Atlantic in Halifax.
“This market is challenging due to a lack of supply. However, young buyers are determined to make a purchase, even if they have to be flexible on location.”
What does this mean for the spring market
Going by the present trends, Soper is anticipating a healthy housing price growth in 2021 across the Canadian market.
There is a “clear imbalance” as of now, owing to the rising demands for buying a home among younger Canadians and the reluctance of the older population towards selling, Soper noted.
3:57 Housing demand rising to levels not seen in nearly a decade
Housing demand rising to levels not seen in nearly a decade – Feb 17, 2021
The ongoing housing supply shortage is likely to continue well into spring or at least until “more vaccination is underway, and older people are comfortable getting back into the market,” he said.
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This will put a “very significant upward pressure on prices,” he added.
“We can expect a 10-20 per cent increase in the price of detached homes overall,” Soper said, adding, “There could also be rising demands for recreational housing, investment in cottage country properties as we move further into summer months.”
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
