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SOURCE Royal LePage Real Estate Services
Single-family homes remain the most popular property type among both
Baby Boomers and Generation Y, according to Royal LePage survey
TORONTO, Feb. 26, 2013 /CNW/ - Despite the perception that aging Baby
Boomers may create an oversupply of traditional single-family homes as
they downsize into smaller residences, a new Royal LePage Real Estate
survey shows that demand for suburban detached homes remains strong
among Baby Boomers and Generation Y.
The poll by Leger Marketing found that of the 40.6 per cent of Baby
Boomers (born between 1947 and 1966), who do have plans to move to
another primary residence, almost half (43.5 per cent) are looking to
purchase another primary residence that is a similar size or larger
than their current property. Of the total responses from Baby Boomers
who intend to purchase their next primary residence, 66.8 per cent said
they will do so in the next five years.
"Baby Boomers are the wealthiest generation in Canadian history. They
live in large homes with ample space for their many possessions. They
love their garages and their yards. This study clearly indicates that
contrary to popular belief, most Boomers do not intend to downsize
anytime soon," said Phil Soper, CEO of Royal LePage Real Estate.
Male Baby Boomers, who are planning to move, are more keen on upsizing
their residence than women, with 23.0 per cent reporting that they plan
on moving to a larger residence compared to 12.1 per cent of women.
Baby Boomers looking to purchase a condominium prefer less amenities
and low maintenance fees (54.5 per cent) over properties that have many
amenities (39.1 per cent). Seventy-eight per cent of Baby Boomers
currently own their own homes.
Contributing to the desire of Baby Boomers to continue to invest in
large, suburban homes is the reality of housing children well into
adulthood. According to the survey, a quarter of Generation Y lives
rent free because of arrangements with family or friends, but that
number climbs to 33.4 per cent in the Prairies, 29.7 per cent in Quebec
and 27.2 per cent in Ontario.
"The adult children of Baby Boomers aren't going anywhere fast. Good
jobs have proven more difficult for them to find, they're extending
their studies and they're living at home. It is no wonder the concept
of swapping a family-sized home for a small retreat has lost its
luster," said Soper.
Meanwhile, members of Generation Y (those born between 1980 and 1994),
who plan to purchase their next residence, are most interested in
single-family multi-storey homes (50.6 per cent) and bungalows (19.0
per cent). Only 15.7 per cent of Generation Y said they plan to buy a
condominium or an apartment. In comparison, 22.9 per cent of Baby
Boomers looking to purchase their next residence desire condominiums or
apartments.
The survey found that more than half of Generation Y planning to
purchase their next residence, intend to purchase in the suburbs (55.7
per cent) compared to the downtown core of a city (21.7 per cent).
Forty-three per cent of current non-owners who plan to purchase in the
next five years say it is because they are planning to start a family
in the near future. Among this younger demographic planning to purchase
their next residence, the safety of a neighbourhood and proximity to
their work, family and friends are the most important attributes when
selecting a new home. Keeping in mind that nearly half of Generation Y
listed their near-term plans to have children of their own (42.0 per
cent) as a motivating factor to purchase, the least important factors
are proximity to the downtown city core and restaurants or
entertainment.
"The young people who make up Generation Y are our first-time home
buyers. Like their parents, they dream of owning a lovely house in the
suburbs, which provides value as well as access to parkland for
children to play and the perception of greater family safety," said
Soper. "Even as condominium living becomes more popular across Canada,
the study results do not point to a corresponding decrease in demand
for traditional single-family homes. For the Baby Boomers that do head
downtown, there is a generation waiting to move in."
Among Baby Boomers who plan to downsize when they purchase their next
residence, the most popular reasons are to reduce maintenance (73.7 per
cent), free up money for retirement (48.1 per cent) and for travel
(30.9 per cent).
Regional Comparisons of Those Planning to Move
Regional Generation Y comparisons showed that more Ontarians and
Albertans place importance on being close to the city's downtown area
or town's core than Quebecers and those from the Prairie provinces.
Likewise, a gym or fitness centre is more important to Ontarians,
Albertans and British Columbians than it is to Atlantic Canadians or
Quebecers. Atlantic Canadians also place less importance on proximity
to public transportation, restaurants or entertainment than Generation
Y living elsewhere in the country.
When comparing Baby Boomers across Canada, Ontarians, Quebecers and
Albertans are more likely to choose a home in the country than British
Columbians. More Baby Boomers from British Columbia value being close
to public transportation when purchasing a home than those from Ontario
and Alberta. In addition, there are no significant regional differences
comparing Baby Boomers who want to upsize, downsize or continue to live
in a similar sized property.
Royal LePage Baby Boomer and Generation Y Survey
Survey Results for Respondents Who Plan To Purchase a New Primary
Residence
|
|
|
Baby Boomers (1947-1966)
|
Generation Y (1980-1994)
|
|
When I move I plan to…
|
|
Upsize
|
17.6%
|
63.2%
|
|
Same Size
|
25.9%
|
20.9%
|
|
Downsize
|
54.0%
|
12.9%
|
I don't know/ I prefer not to
answer
|
0.7%
|
2.2%
|
|
What type of property are you interested in for your next primary
residence?
|
|
Multi-family properties
|
|
Condominiums/Apartments
|
22.9%
|
15.8%
|
|
Single family homes
|
|
Townhouse
|
6.8%
|
7.3%
|
|
Bungalow
|
39.0%
|
19.0%
|
|
Single family multi-storey
|
18.8%
|
50.6%
|
|
Sub-total
|
64.5%
|
76.8%
|
|
Other
|
|
|
|
Recreational property
|
5.9%
|
1.7%
|
|
Other
|
3.0%
|
2.8%
|
I don't know/I prefer not to
answer
|
3.3%
|
2.9%
|
|
What features/amenities are most important to you in purchasing your
next primary residence?
|
Safety of the
neighbourhood/area
|
61.9%
|
63.2%
|
|
Includes a backyard or balcony
|
69.6%
|
66.3%
|
|
Style of the home
|
63.5%
|
60.9%
|
|
Garage or driveway
|
67.8%
|
57.7%
|
|
Square footage of the property
|
50.2%
|
49.9%
|
|
Green/energy efficient
|
27.2%
|
20.2%
|
|
Swimming pool
|
12.7%
|
8.9%
|
|
Proximity to work
|
16.7%
|
47.1%
|
Proximity to public
transportation
|
29.0%
|
31.2%
|
|
Proximity to family and friends
|
23.3%
|
34.3%
|
|
Proximity to downtown/city core
|
26.3%
|
24.3%
|
Proximity to
restaurants/entertainment
|
22.8%
|
19.8%
|
|
Proximity to schools or daycares
|
6.8%
|
29.9%
|
|
Includes a gym or fitness centre
|
7.0%
|
7.9%
|
Methodology
The survey was completed online using Leger Marketing's online panel, LegerWeb, between September 13th and September 21st, 2012 with a sample of 1,013 Canadians born between the years 1980 and
1994 (Generation Y) and 1,011 Canadians born between the years 1947 and
1966 (Boomers). A probability sample of the same size would yield a
margin of error of ± 3.08%, 19 times out of 20, for each respective
sample.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading
provider of services to real estate brokerages, with a network of
14,000 real estate professionals in over 600 locations nationwide.
Royal LePage is the only Canadian real estate company to have its own
charitable foundation, the Royal LePage Shelter Foundation, dedicated
to supporting women's & children's shelters and educational programs
aimed at ending domestic violence. Royal LePage is a Brookfield Real
Estate Services Inc. company, a TSX-listed corporation trading under
the symbol TSX: BRE.
For more information, visit www.royallepage.ca.
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