A new generational trends report released today by Mustel Group and Sotheby’s International Realty Canada reveals that an overwhelming majority of urban Canadians across the Baby Boomer, Generation X, Millennial and Generation Z adult demographic remain confident in the long term financial performance of residential real estate. Despite rising interest rates, stubborn inflationary pressures and economic uncertainty, nearly half (49%) of urban Canadians ages 18–77 believe that a residential real estate purchase will perform the same or better than their other financial investments in the next 12 months, while a resounding 60% believe it will perform the same or better than their financial investments in the next 10 years. In fact, over one-third (35%) report that they are even more likely to purchase a primary residence in the next five years than they were in January 2020 before the advent of the pandemic, while one-third (35%) of those who already own a primary home report that they are now more likely to sell within the next five years compared to their intentions pre-pandemic.
- Confidence in the performance of real estate over the next 10 years is high across all major metropolitan areas, with 6 in 10 (60%) of urban Canadians between the ages of 18–77 years across the Baby Boomer, Generation X, Millennial and Generation Z adult demographics believing that a home or residential real estate purchase will perform the same or better than their other financial investments in the next decade, including over 1 in 3 (35%) who believe real estate will perform better.
- Nearly half (49%) believe that a home or residential real estate purchase will perform the same or better than their financial investments in the next 12 months, including 1 in 4 (23%) who believe that real estate will perform better.
- Overall, across all markets, Baby Boomers are the most likely generation to believe real estate will outperform their financial investments in one year, as well as within 10 years, with 28% and 44% doing so, respectively.
- 1 in 3 (35%) urban Canadians between the ages of 18–77 are now more likely to buy a home in the next five years as compared to their intentions in January 2020 before the COVID-19 pandemic, a finding that is relatively consistent across all metropolitan areas and generations surveyed. This includes 12% who are now “much more likely” to buy.
The Toronto Star
The Financial Post
About this survey
- An online methodology was employed, using a robust national panel of Canadians who reside in the four greater metropolitan areas of interest: Vancouver, Calgary, Toronto and Montreal.
- A total of 2,000 Canadians were surveyed, using a disproportionate sampling method to enable analysis within each metropolitan area, as well as across the combined metros (Census Metropolitan Areas, CMAs).
- The sample was weighted to match Canada census on the basis of age and gender within each CMA and to bring the total sample into proper proportion based on relative populations.
- While the panel sample is demographically representative, margins of error only apply to random probability samples. (The margin of error on a random probability sample of 2,000 respondents is ± 2.2 percentage points, 19 times out of 20, and ranges from ± 3.8 to 4.9 points for 400 – 680 respondents.
- Data collection dates were Jan 3 to Jan 10, 2023.
- Please see cross tabulations here: C307 Tables