Recently, while at my hairdresser's, I overheard a conversation that piqued my interest. A twenty-something client was telling her stylist that she had no desire to buy a home. What struck me was that her reasoning had nothing to do with affordability or the price of housing. For her, freedom meant having little to no responsibility. She didn't want to deal with lawn care, snow removal, or home maintenance. Instead, she preferred to spend her money on travel, a nice car, and those coveted red-bottom shoes.
I was perplexed and wanted to jump in, explaining that buying a home is an investment, a way to put money in the bank and own something of value. But I kept my thoughts to myself and decided to do some research instead.
When I got home, I was curious if this sentiment was widespread among Gen Z. Luckily, it’s not. According to RocketHomes.com, a whopping 86% of Gen Z plan to purchase a home in the next five years. Three-quarters of them are already saving for it. While millennials are often seen as the generation of perpetual renters, Generation Z seems to be bucking that trend. A Rocket Homes® survey of over 1,400 adult Gen Z members (ages 18-24) revealed that 86.2% are keen on homeownership.
Gen Zers are aware of the obstacles that might prevent them from buying a home, but they remain determined. Interestingly, the biggest challenge may be their unrealistic expectations. The survey found no significant difference between the younger and older members of the generation in their desire for homeownership. Both groups, ages 18-21 and 22-24, expressed a strong desire to own homes soon.
However, there is a slight variation when it comes to those planning to buy a home in the next decade. While 28.5% of all Gen Z respondents plan to purchase a home in the next 10 years, younger Gen Zers are 6% more likely to aim for this time frame.
Despite their enthusiasm, some Gen Zers are just beginning to consider homeownership. Only 7.2% plan to buy a home in the next 15 years, and 19.7% are interested in buying a home but don’t have immediate plans.
The desire to purchase a home for Gen Zers mainly comes from wanting to start a family (27.2%), having the freedom to do what they want with their home (25.5%), and building wealth (13.2%). Even those who said they don’t want to buy a home often cited financial constraints as the main reason—40% of them don’t think they’ll have enough money.
So, the question is, can Gen Z afford a home in Halifax? The average Gen Zer in Canada makes roughly $45,000. Is homeownership in Halifax within reach? Maybe. A mobile home priced up to $150,000 could be doable at this income level. Another option could be pooling resources with like-minded friends to afford a single-family home. I've seen this happen several times over the years. Why pay rent when you could afford a down payment? Buy a home, stay for five years, then sell and split the revenue. It’s not an ideal situation, but at least you’re building equity.
