Much of Toronto's Gen Z population plans to buy a home soon but good luck
Skyrocketing housing prices are rough enough for even the most financially-established demographics, but a decent share of Toronto's young adult Generation Z population seems hopeful that they will soon own their own home. Maybe even a bit too hopeful.
As of January, it costs an average of over $1.2 million to buy a home in the Greater Toronto Area, but according to new survey data from Mustel Group and Sotheby's International Realty Canada, at least a few Gen Z-ers haven't quite clued in on these rising prices.
A whopping 36 per cent of Gen Z adults are convinced that they will own a home within five years, 28 per cent think they will own a home within five to eight years, while 44 per cent aim to own in the next decade.
That's a pretty lofty target, but it might stem from a slight disconnect from reality, with a share of prospective home buyers in the Gen Z demographic under the impression that there are affordable options out there.
Of those surveyed, 13 per cent of Toronto Gen Zs actually think they'll be able to purchase a home for less than $350K, which is honestly one of the most adorable things I've ever heard. An even larger share, at 23 per cent, believe there is a home for them priced between $350K and $500K, which is still pretty cute.
Another 29 per cent of respondents were a bit closer to reality, anticipating spending from $500K to $750K on their first home, the highest end of which puts them in the price range of the average Toronto condo.
The data also reveals that there are plenty of Gen Zs who understand the value of Toronto real estate, and who apparently have plenty of resources to draw from even at their young age, with 19 per cent expecting to pay between $750K and $1 million, and the remaining 16 per cent expecting to pay over $1 million.
So how are these young adults going to pay for their purchases?
It turns out most, at 70 per cent surveyed, are relying on their personal savings for a down payment on a home, though many more are getting help through financial gifts from families, loans from financial institutions, as well as through the sale of financial assets and withdrawal from RRSPs.
But there are many other methods of saving money these young adults are employing. Almost half surveyed reported reducing personal spending, 42 per cent said they worked a second job, 37 per cent cut down on eating out or ordering in, and 31 per cent reduced or eliminated vacations to generate enough cash.
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