Real Estate With Nicole (00:15)
you are listening to this podcast on the day that it publishes, I wish you, your family and your friends a very happy Canadian Thanksgiving. Wishing you the best. We all, no matter what kind of circumstances we are in, there's at least one thing we can be thankful for each day. And let's try to think about that positive, amazing thing to be thankful for.
And for today's podcast episode, I'm start off with a quote from a social activist and feminist, Gloria Steinem. She once said, we need to remember across generations that there is as much to learn as there is to teach. I think these are, is a great words from Gloria Steinem.
that not only is the older generation teaching the younger generation, but vice versa is true, that we all have an opportunity to learn from each other. Whether it's the older generation learning new things about technology from the younger generation or the younger generation learning tips, tricks, learning from the mistakes of their elders with regards to
things such as real estate investing or other decision making that that generation may have made in their lives. Hello everyone and welcome to another episode of Real Estate with Nicole. I'm your host, Nicole, and today we're gonna touch on a topic that impacts all of us, I think in some way, and that's the involvement
different generations in real estate investment, particularly in the Greater Toronto Area and how this may shape the future of the market. You know, I mentioned particularly in the Greater Toronto Area and that's because we see that there is a high level of multi-generational families within this region.
So it's really interesting, I think, for us to explore and through the lens of different generational perspectives, what real estate may mean to each of us. I must admit that these ideas are generalities that are often seen by society through demographic trends.
through data from the recent Canadian census in 2021. So, you know, I want to caveat this that many individuals who may be in these particular generational groupings may not identically fit the description of their particular generation. So they may sit outside of these generalities and trends.
However, I think it's really important for us to understand in general what the majority of people may be like or their thoughts may be focused on. So the real estate landscape is continuously evolving and understanding how various generations are participating in this market can offer us valuable insights as real estate investors.
And I say valuable insights in the sense that if we know what's happening or what potentially could be happening for various generation groups, we may understand what trends may be coming, what opportunities we may be faced with, and also what challenges we as individuals and real estate investors may be facing because of generational shifts.
and perspectives that are ongoing. So let's explore this dynamic by starting out with the baby boomers and then moving our way through to Generation Z. So whether you're a baby boomer, a Gen Xer, a millennial or Gen Zer, your views on real estate are truly shaped by your unique life experiences, economic events such as
recessions, pandemic, all these different items that could have happened. And also societal shifts. So what I want you to do is grab your cup of coffee or tea. I have my Darjeeling here. And let's get started on this generational journey through a real estate lens.
All right, as I mentioned, let's start with the baby booners. And those baby booners were born between 1946 and 1964. So this generation significantly influences the real estate market as they often hold a substantial equity in their homes. So when I say that, meaning that more than likely,
They have paid off their homes. They may have additional properties or holdings, investment properties. So they tend to hold quite a bit of equity within the real estate market. Another fact to understand or another item to know or trend for the baby boomer generation is that many of them are either in retirement or approaching retirement, which
ultimately leads to a trend in downsizing typically or relocating to more lifestyle friendly areas. So oftentimes baby boomers may want to move south to the US or to have a vacation home or a second home. Many snowbirds spend the summers here in Canada and then they have a second home down south.
where they can enjoy a warmer weather during the cool, freezing cold winter months. Also, and that's typically the trend, I have seen personally some baby boomers, they want to maybe buy a little bigger home where they have an opportunity to have their grandkids there, have a huge family gatherings and really spend time with their family in a bigger space, owning that.
dream home and they have the ability, majority of them, due to the equity that they hold to actually do this. So this shift, whether it be the lifestyle change or downsizing, can have a ripple effect on the market because it potentially opens up opportunities for younger buyers to purchase their first home.
or to purchase a larger home in more established neighborhoods. So this gives an opportunity for other buyers. Once the baby boomers are downsizing or looking to invest in other opportunities, younger families are able to now move into bigger, better neighborhoods, potentially move into their starter home.
Let's take a look at the Gen Xers. So, the Generation X was typically born between 1965 and about 1980. So this generation is typically in their peak earning years and they're often trying to manage balances on their mortgage with other financial responsibilities. And these responsibilities could be
you know, supporting their kids going through university or college expenses or potentially even, maybe even helping their children to come up with a down payment for their first home. Some on the older side. And then others are potentially, they're focused on really saving up for retirement and understanding.
What do we need to do? What do I need to do in order to have that, meet that retirement goal? So Gen Xers are usually known for seeking stability and often interested in investment properties or vacation homes. So they really wanna be strategic in their approach to real estate. And typically,
they can introduce more properties into the rental market. So impacting rental prices and availability. So with this kind of strategic approach, you see how the Gen Xers may be a little bit different than the baby boomers where the baby boomers are downsizing, looking to really fulfill their lifestyle needs. The Gen Xers, yes.
its lifestyle needs, but they're also preparing for retirement, helping their kids out and trying to balance out potentially paying off their mortgages sooner than later. So now why don't we take a look at the millennials? And this generation is typically known to be born between 1981 and 1996 and often facing the challenge of high property prices.
student loan debt that is quite significant. And millennials, as it's been seen in many surveys and many trends analysis and what we've been seeing, it's been slower for them to enter the real estate market compared to previous generations. Because of managing the student loans and because
of the increasing home prices. As I've mentioned in previous podcasts or some of my seminars, in the GTA area, we've seen over a 10-year period, property prices, equity doubles over that 10-year period. So year over year, on average, it's about 6.6 to about 7 % year over year growth in property.
values as we've seen over the past 40 years. So you can see that has now having a significant impact on the millennials. However, they are determined and interested in living at the urban lifestyle, primarily maybe more in a downtown Toronto or downtown urban center.
That trend has led to a rise in condominium purchases in the Greater Toronto area. Millennials tend to be more tech savvy, so they are also known as kind of digital natives because they grew up with the internet and these tech tools and it's really easy for them to navigate and love using these digital tools to do their research.
in order to make informed decisions, which is truly reshaping the real estate market in many innovative ways with regards to these tech tools and really doing that research ahead of time before actually going out and actively seeking to make that investment purchase. Okay, so let's take a look at Gen Z. So Generation Z.
is born from about 1997 onwards and it's beginning to emerge in the real estate market. While they're still young, their preferences are for mobility and flexibility, which could lead to a continued demand for rental properties and co-living spaces. So Gen Z's future impact on the market will likely reflect their values of sustainability
and technology integration. So it's really important to know that the sustainability, the ability for more green real estate projects, EV, all those various items that will help to reduce the carbon footprint are really important or tend to be important for this Generation Z.
values and what they look for and what they're thinking about with regards to real estate. An interesting item that I did note was the co-living. Thinking about creative ways in order to own a home. Whether it that be having a group of friends, investing together to own a property and co-share so it reduces the burden of the investment for the initial investment.
and then building up that equity over time to allow them to, if they want, to individually purchase properties or real estate in the future. So those are really important things to consider with regards to these generations. One thing, just on a personal note, I've seen where one of my uncles, he is really focused on educating, helping.
his grandson or grandkids to truly understand the importance of investment, to understand what they should look for, how they should save in order to be able to make that initial investment. And also at the same time, sharing his personal experiences, sharing what he thought maybe are mistakes or maybe he could have made decisions in a different way. So really passing on that knowledge.
to younger generations to help them to be more informed, to be able to make an informed and well, and confident decision as it pertains to real estate investment. So what does this all mean for the future of real estate in the GTA? So all of these generations, they continue to move through different life stages.
So we can expect shifts in housing demand and property values as time goes along. Baby boomers and Gen Xers may drive the opportunities for suburban and rural development, while millennials and Gen Zers could push for more urban revitalization, which we've been seeing, and green building practices, which we've also been seeing more of.
Technology will undoubtedly play a crucial role in these transitions, as will have virtual tours, there's blockchain for property transactions that have been coming up in the United States, smart home integrations have becoming more mainstream. And additionally, the pressure to address affordability and sustainable living will definitely shape
government policies in real estate strategies. I'll be addressing one of these government policies that's going to be come into effect in December to hopefully address affordability in Canada, but specifically in the Greater Toronto area. I'm really looking forward to sharing that with you and kind of giving you some insight into what's coming up and how we may be able to address some of the affordability.
at least a little bit. These changes are going to be incremental, but I think having an awareness of it and understanding these strategies and just in general, the generational shifts will truly help you to be a more informed investor, whether it's your first property, second property, or just for informational purposes. So there you have it, a snapshot.
of how generations tend to view real estate investment. So whether it's the asset rich baby boomers or the tech savvy Gen Zers, each generation brings its own unique approach to the table in addition to unique challenges and opportunities that they face. Understanding
these differences can help us to better anticipate and respond to the trends. Each generation goes further.
I'm going to leave you with this quote from Ronald Reagan. He states, each generation goes further than the generation preceding it because it stands on the shoulders of that generation. You will have opportunities beyond anything we've ever known. And that's from Ronald Reagan. Thank you for joining me today on Real Estate with Nicole.
I hope you found this episode insightful and thought provoking. If you enjoyed this episode, don't forget to follow and leave a review. Until next time, stay informed and stay inspired. So long.
