Generation Y buyers will demand larger and higher-end units as they will have stronger buyer power and accustomed to living in the comfort of their parents homes for a longer time.
“I would never say that they’re spoiled but Generation Y’s quality bar is higher than the Baby Boomers’ one was,” said Don Campbell, president of the Real Estate Investment Network. “They want quality – nicer countertops.”
The increasing move to remote access working environment and self-employed status will lead to a demand for additional space for home-offices and higher-end smaller units in the short-term before they make the move to home ownership.
According to a recent poll by Rennie Marketing Systems, parents and grandparents already provide deposits for 40 per cent of today’s first-time home buyers in Vancouver. Such assistance and expected windfall from inheritance in the coming years will drive a change to the real estate landscape, says Campbell. Higher salaries will also influence buying decisions and home demands.
He also points to the new trend amongst Generation Y to buy a home with a platonic friend and hence the need for larger two-bed unit.