Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission for purchases made through links on this page.
Calgary’s young adults aren’t letting rapidly rising home prices dampen their dreams of ownership, a new survey suggests.
Sotheby’s International Realty released a new report showing that more than four in 10 adults in their 20s and 20s plan to buy a home in the next five years.
“This goes back to a survey we did in November,” says Don Kottick, president and CEO of Sotheby’s International Realty Canada.
“This was a town that everyone thought would rent.”
He adds that the previous Sotheby’s survey found that Generation Z (adults 20 and under) not only plan to buy a home, but also want to buy stand-alone single-family homes.
However, Sotheby’s most recent study, published in March, examined their ownership timeline and how they plan to save for a down payment.
Calgary respondents stood out in a number of ways, he says.
For example, 44 percent plan to buy a home in five years, compared to 37 percent nationally.
Additionally, 36 percent of the other respondents planned to buy a home within five to 10 years in Calgary, compared to 43 percent nationally.
Calgary Gen Zs also differed nationally when it comes to how they plan to make a down payment.
“Nationally, 67 percent said their down payment would come from personal savings,” says Kottick.
He adds that in Calgary, the number was 64 per cent, reflecting in part the lower median home price relative to the rest of Canada.
Figures from the Canadian Real Estate Association show that the median home price in February hit more than $816,000 in Canada, the highest median price on record. While the median home price in Calgary has also hit a record high, it’s still significantly less expensive at $547,720.
“Because the average price is lower, the young adults surveyed may not need to dip into their savings as much as their peers living in larger centers,” says Kottick, noting that savings could include RRSPs. .
However, some young Calgarians aren’t waiting on the sidelines and are in the market to buy now, says a local real estate agent.
“We’ve found that many Gen Z today are generally looking for properties in the entry-level category, meaning condos or townhomes,” says Jared Chamberlain, broker/owner of Chamberlain Real Estate Group.
He says this age group is still a small segment of the market because they are often starting their careers and require more time to save for a down payment.
Still, some are shopping sooner rather than later with the help of their parents. Chamberlain points to a case in which a young buyer bought a three-bedroom condo with the help of one of his parents.
Getting help from parents is also reflected in the survey, says Kottick.
In Calgary, it found the most financially independent young people: Nearly one in five planned to get help with a family down payment, compared to 25 percent nationally.
Despite the challenges of rising interest rates and home prices, Kottick says the new survey shows that young adults still see value in property.
“This survey dispels the myth that this group is not an owner.”