Homeownership important to Generation X and Y Ontarians

Homeownership important to Generation X and Y Ontarians

Large majority think owning makes more sense than renting

TORONTO, February 3, 2014 –

The importance of homeownership ranks high among Ontario’s younger generations – 77% of Generation Y and 79% of Generation X [1] say it is important to them, according to new research conducted by Ipsos Reid on behalf of the Ontario Real Estate Association (OREA). The study, the first of its kind for OREA, examined public opinion in Ontario on a variety of matters pertaining to the Ontario real estate market. The first set of results released in December 2013 highlighted Ontarians’ outlook on the 2014 real estate market and economy.

“A large majority of younger Ontarians believe that owning a home makes more sense than renting,” says Sean Simpson, vice president, Ipsos Public Affairs. “They also have a positive perception of the economy and the current residential real estate market in Ontario, both of which are important considerations in the decision to buy a home. Insights like these help us understand the motivation for younger people to buy homes.”

A significant percentage of Gen Y and X’ers, 76% and 82% respectively, think it makes more sense to own a home rather than rent over the long-term. Furthermore, 73% of Gen Y and 82% of Gen X believe real estate is a good investment. In terms of the current residential real estate market in Ontario, more than half of Gen Y and Gen X have a favourable assessment (51% and 63% respectively), while only 23% and 17% have a negative assessment. The majority also describe the economy as ‘good’ right now (61% of Gen Y and 57% of Gen X).

“The desire to own a home is alive and well among these demographics,” says Phil Dorner, president of the Ontario Real Estate Association. “Their positive forecasts show that these new and aspiring homeowners understand the long-term investment potential of residential real estate.”

Looking ahead:

• One-third of Gen X’ers, and 39% of Gen Y believe the real estate market in Ontario will be stronger in the next year, while only 20% and 19%, respectively, believe it will get weaker
• Looking ahead to the next 10 years, 50% of Gen Y and 48% of Gen X believe the provincial real estate market will be stronger
• 14% of Gen Y and 17% of Gen X say they are ‘very likely’ to buy a home within the next two years 

Other generational perceptions and results from the study include:

Homeownership

• 30% of Gen Y and 61% of Gen X own a home
• 76% of Gen Y and 82% of Gen X say owning a home gives them a sense of pride

Top reasons for purchasing a home

• Of those respondents who indicate that they currently own, or are likely to purchase a home in the future, Generation Y cites ‘desire to own a home of my own’ (33%), ‘long term investment value’ (32%) and ‘financial readiness’ (29%) as their top reasons
• Generation X cites ‘desire for a larger home’ (31%), ‘long term investment value’ and ‘desire to own a home of my own’ (30% each), followed by ‘mortgages rates were/are right’ (29%)

[1] For the purposes of this study, these generations are defined, Generation X – born 1965-1980; Generation Y – born 1981-1995

Methodology

These are some of the findings of an Ipsos Reid poll conducted between November 4 and 7, 2013 on behalf of the Ontario Real Estate Association. For this survey, a sample of 1,517 Ontarians was interviewed via Ipsos' online panel. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/-2.9 percentage points had all adults living in Ontario been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

About the Ontario Real Estate Association

The Ontario Real Estate Association represents over 56,000 brokers and salespeople who are members of the 40 real estate boards throughout the province. OREA serves its REALTOR® members through a wide variety of professional publications, educational programs, advocacy, and other services. www.OREA.com