Young are keen to become homeowners
RBC poll shows buyer confidence on upswing
More young Canadians are confident in the housing market and intend to buy a home this year, says a new poll by the Royal Bank of Canada. This uptick in interest from young buyers is something condo developers in Calgary say they’ve seen at sales centres.
RBC’s Canada-wide poll shows 86 per cent of those aged 25 to 34 years old think buying a condo or house is a very good investment. For the same age range, 41 per cent of respondents said they intend to buy a home this year. That number is up from 25 per cent in 2013.
In Alberta, 28 per cent of respondents aged 24 to 34 years old said they intend to buy. Last year, it was 22 per cent.
“Many in the 25 to 34 age group would like to stop paying high rents or move out of their parents’ basement,” says Brad Logel, Cardel Lifestyles’ sales and marketing manager. His company is building and selling projects in Cranston and Sage Hill. Logel says pressure on the rental market ramped up after flooding in the city last summer. Many younger buyers are visiting sales centres with their parents, adds Logel.
“These parents want to help their children get on the track to home ownership and assist with advice and in some cases part of the down payment. They’re appalled by the rents their children are paying and would to see them turn that monthly rent into equity.”
Cardel Lifestyles’ Cranston Ridge development recently opened sales on its second building and people lined up starting at 4 a.m. to purchase an apartment, says Logel, adding “confidence is indeed very high.”
The same goes for interest at concrete skyscrapers in the downtown core, says vice-president of sales and marketing for Lake Placid Group of Companies Richard Lobsinger. He says his project The Park has “garnered a huge response from young professionals.” The Park is an 18-storey, 156 unit tower in the Beltline district.
“With record low interest rates, a healthy employment scene and Alberta leading the country in annual growth rate, for many first time home buyers making the leap into home ownership has not been a difficult decision,” says Lobsinger.
“Many young buyers are sick of the expensive and confined rental market and are seeing that owning is more advanta- geous and valuable in the long run.”
Ernest Hon with development firm Hon Towers says 25- to 34-year-olds represent “a very large component of the traffic” at the sales centre for the company’s Victoria Park project The Guardian.
Hon says he’s also heard from buyers fleeing the rental market. But he also points to an upward trend in real estate property values in Calgary.
“This is due to the fact that demand for new homes is high with the contin- ued growth in Calgary’s population but a somewhat limited growth in supply,” says Hon. “With these market dynamics, buyers are expecting prices to continue to increase, especially in areas like the Beltline and Victoria Park where neighbourhood amenities and streetscape are rapidly improving.”
Ernest Hon, with development firm Hon Towers says 25- to 34-year-olds represent “a very large component of the traffic” at the sales centre for the company’s Victoria Park project, The Guardian.