Unlocking homeownership for Gen Z: How they can acquire real estate amid today’s market challenges

In the ever-changing Canadian real estate market, Generation Z, Canada’s next generation of first time homebuyers, aspires to become homeowners. They face the challenges of rising rental costs, housing shortages and rising inflation.

Gen Z is resilient and adaptable, embracing frugality, and seeking innovative strategies to reach home ownership goals. 

A unique perspective and attitude towards homeownership and finance

Gen Z was born in the digital age and has a unique perspective and attitude towards finance and homeownership. Growing up in an uncertain economic climate, they value financial sensibility. According to research by 2023 CFA Institute & Financial Industry Regulatory Authority 74 per cent Canadian Gen Zs are investors. 

The group’s conservative attitude to money drives them to become financial planners. Gen Z is more likely to seek financial advice and explore innovative ways to become homeowners, as they are aware of the challenges posed by rising rental rates, high costs of living, and housing scarcity. They are now more interested in gaining financial insight, and want to understand how to increase their savings.

Let’s explore some of the Gen Z: What they useYou can pursue home ownership.

Use the expertise of real-estate advisors

We, as real estate advisors are aware of the challenges Gen Z faces. Real estate brokers can help the next generation get into the housing market.

Rent or buy? This is a question that we hear a lot. The rental property market has declined. Many of the apartments available are geared towards downsizers and wealthy immigrants. Halifax is a market where it’s nearly impossible to find an affordable rental. Advisors can offer valuable insight to answer these questions. They can guide aspiring Gen Z home owners through these difficult decisions, and provide a deeper understanding of current housing market.

Invest in properties with multiple income streams to offset mortgage costs

Multi-income property is a strategy that Gen Z should consider to be able to afford homeownership. Rental income can be used to offset mortgage costs.

This means something different to everyone. Buying a property together with family and friendsIn order to overcome the financial barriers, it is necessary to embrace a collaborative strategy. Others purchase properties with the intention to rent units to tenants who are able to pay their monthly mortgages. 

My Gen Z friend bought a duplex several years ago, with two other friends. He lived in one unit, while renting out the second to tenants. This approach is gaining popularity among Gen Z, as it allows them to build equity to become homeowners.

Real estate continues to be the most secure investment. Multi-income is a great way to get Gen Z into the market and help them start their journey towards homeownership earlier. 

Education is crucial for Gen Z

Education is a crucial part of our business. We offer training sessions, seminars, and finance consultations. These can be a range of topics including navigating the real-estate market, the advantages of multi-income property ownership or financial advice provided by mortgage brokers and advisors. We provide access to educational seminar and connect aspiring homeowners with resources so they are prepared to become homeowners. 

Gen Z can successfully navigate the real-estate market by attending seminars, online workshops, and consulting with real estate and financial advisors. 

As the real estate landscape evolves, it’s important to support the next generation of homebuyers, as they have surpassed Gen X to become the third-largest generation. With guidance and strategic planning, embracing frugality and taking advantage of collaborative investments, Gen Z can be better prepared for success in Canada’s competitive housing market.