According to a new demographic survey from Royal LePage, the cohort of 25-35 year olds are on track for homeownership despite any disruptions from the COVID-19 pandemic. With their financial goals on track, this group will be adding to the buyers who are flooding the markets. However, while Niagara’s boom is still growing, this group may not have to compete with the wealthier boomers and investors hawking. One reason contributing to this is the fact that remote work has expanded their search and is allowing them to look in areas further from their employer.
The Royal LePage 2021 Demographic Survey release was distributed to the media early this morning. The release includes insights from experts across the country, and data from a recent Royal LePage survey, highlighting the real estate trends of Canadians aged 25-35 since the onset of the COVID-19 pandemic.
Key highlights from the national release include:
- Nearly half of Canadians aged 25 to 35 own their home; one quarter of these homeowners purchased a property since the onset of the COVID-19 pandemic
- 68% of non-homeowners aged 25 to 35 intend to purchase a home within five years
- 72% of cohort feels confident in their short-term financial outlook
- 40% of cohort saw their savings grow since mid-March
- 52% say remote work has increased likelihood of moving further from employer
What does this mean for the market? This will definitely contribute to the onset of buyers, as now we are finding another group of buyers entering the market. As this cohort moves to areas outside the city, we will start to see demands and prices rise more in these less populated areas. While some of this age group may have the finances to compete with the baby boomers and investors leaving larger cities and moving to areas such as Niagara, the majority are already finding themselves forced out of the market. However, optimism remains high with this group as the changing technological world continues to expand their options and provides them with alternatives. These changes are allowing them to find affordable pricing and not worry about about long commutes and distances from their workplace.