In conversation with . . . Elton Ash
Generation Z, those 18 to 24 years of age, is poised to become the next big force in the housing market.
While they are young and don’t necessarily want a single-family home in the suburbs right now, they are interested in homeownership — most likely an urban condominium or townhouse. And they aren’t daunted by prices. Many of them are making good money as they embark on careers in high technology, trades and sales.
Plus, they’re in line for inheritances from wealthier Baby Boomers and Gen Xers.
And they can access programs designed to help first-time homebuyers enter the market.
To find out more, The Daily Courier spoke with Kelowna-based Elton Ash, the executive vice-president of ReMax Western Canada.
COURIER: What demographic is Generation Z?
ASH: The Gen Z demographic cohort follows Gen Y, otherwise known as the Millennial generation.
The Gen Z group we measured is currently 18 to 24 years of age. They will outnumber Millennials within the next year and will have a significant impact on housing over the next 20 years.
COURIER: Why are they so important in relation to the future of housing?
ASH: Gen Z is the next generation of firsttime home buyers.
The overall health of the housing market has always been based on the formation of new households causing first time homebuyers to come into the market.
Knowing how Gen Z feels about housing will give us a look into the health of future housing demand.
This is especially important as they will be the largest generational segment to come into the market.
COURIER: What were the key findings in the RE/MAX survey about Gen Z and housing?
ASH: Gen Z is as optimistic as any previous generation in their desire to own their own home.
(While) Millennials have opted to form families later in their lives, Gen Z is looking to settle down earlier.
They are digitally literate with no fear over where their future lies.
Gen Z is eager to learn as much as they can about home ownership. They know knowledge is power and that will give them choice in their home decision making process.
COURIER: What can Gen Z do to get into the housing market?
ASH: Naturally they need to become as knowledgeable as possible about the various facets of home ownership, which means learning about what programs they can take advantage of to buy their first home, what resources are out there in financing options and choices.
COURIER: Kelowna can be unaffordable. Is it realistic for Gen Zers to get into this market?
ASH: Gen Z isn’t deterred by home prices. Although they are optimistic about being a homeowner, they are also realistic in their expectations.
The wealthiest generational cohort is the Baby Boom Generation — Millennials and Gen Z will be the beneficiaries as that wealth transfers.
Kelowna is no different than any other city in Canada as Gen Z will look to government programs such as the RRSP Home Buyer Program as well as family loans and assistance to put together their first down payment.
COURIER: How are other, older, demographics faring at getting into and staying in the housing market?
ASH: Baby Boomers continue to influence the overall housing market.
Now downsizing or buying second homes, they are very concerned about legacy and ensuring their grandchildren will enjoy the benefits of home ownership.
Millennials are now moving away from the urban lifestyle that attracted them after their college years.
Focused and entrepreneurial, they are looking once again to the suburbs to raise their young families and enjoy a better quality of life.
Moreover, the gains Millennials have earned on their more expensive urban homes are now being invested in the less expensive suburban lifestyle.
COURIER: How would you describe the overall housing market/climate in Kelowna right now?
ASH: The overall housing market in Kelowna is balanced. In other words, housing inventory levels are keeping pace with demand.
This places Kelowna in a healthy market situation as price appreciation has slowed with current conditions likely to stay in this balanced situation for the next year or so.
The growth in the tech sector for Kelowna is opportune as Gen Z is very involved in all aspects of the tech economy and is better positioned to enter the home market locally.