As a premiere home builder of high quality properties, Alair Homes pays close attention to reports about the Canadian real estate market. Recently Sothebys Realty released an interesting study entitled: “2015 Top Tier Generational Trends Report: A Comparative Study of Top Tier Real Estate Trends Across Generations in Canada.” It documents some important housing trends and may offer insight into news reports of thriving luxury real estate markets in locations such as Toronto during 2014.

Generational Preferences

The new study examined the “top tier” housing preferences of three different generations in four large metropolitan areas in Canada: Vancouver, Calgary, Toronto and Montreal. It did not include Winnipeg or other prairie cities. The research indicated some significant differences in property purchases between the wealthiest baby boomers (1946-1964), generation X (1965-1979) and generation Y (1980-2000) residential real estate buyers.

The new report presents a fascinating glimpse into the type of luxury properties which might appeal to members of each age group. This information could prove helpful to anyone considering investing in Canadian real estate, or constructing luxury properties for home buyers.

The Baby Boomerstoronto luxury home

The baby boomers, members of a large demographic bump born during the affluent post-WWII period, represented the category controlling the most financial resources. They include both senior citizens and working adults. Sotheby’s describes their taste in luxury real estate as “Traditionalists.”

More than any other group, people in this age category tend to prefer to purchase homes in well established, upscale neighbourhoods which include many environmental features, such as walkways and community centers. Although housing prices varied by specific regional markets, perhaps reflecting the buoyant market in Toronto, the baby boomers typically expended from one million to five million dollars or more in purchasing luxury residential properties. In cities, they often opted for large luxury condos and townhouses, although many also selected detached standalone homes, especially when caring for elderly parents or children.

Generation X

The members of generation X covered by the report presently fall between 36 and 50 years of age. Most of them work and maintain growing households. Sothebys Realty describes their main real estate focus as “Family Driven” and “Aspirational Buyers.” Spacious standalone single family luxury dwellings appeal to this age group, and they are more willing to settle in neighbourhoods that reflect greater socio-economic diversity than the baby boomers. Locations near excellent school systems and parks and other recreational facilities attract this financially independent age group.

Generation Y

Designated as “Trailblazers”, the youngest group of affluent real estate buyers in the report overwhelmingly resided in ethnically diverse, multilingual downtown urban centers, close to public transportation and city recreational facilities. In large numbers, they accepted more compact living areas in order to obtain locations near desirable city features. Reportedly, they expended almost twice as much as other first time home buyers to purchase choice properties, although they also tended to obtain downpayment assistance.