Home Buying #Featured articles
Home Buying #Featured articles
What Canadian Gen Z and Millennials Are Looking for in Real Estate
Table of contents
Canada’s youngest generations of homebuyers are stepping into the real estate market with very different priorities from their parents. Gen Z and Millennials are more tech-savvy, value-driven, and flexible when it comes to location and lifestyle, and that’s changing what developers, brokers, and mortgage lenders need to deliver.
Whether it’s walkability, affordability, or remote work-friendly layouts, the expectations of younger buyers are reshaping demand across Canada. Here’s what Gen Z and Millennial homebuyers are looking for in today’s market and what that means for the future of Canadian real estate.
Key Takeaways
- Millennials and Gen Z are increasingly feeling pressure to buy a home.
- Many are open to postponing other major life events to achieve their homeownership goals.
- Many young Canadians are more open to accepting family help in buying a home and exploring alternatives, such as co-buying.
What’s Driving Millennial and Gen Z Homebuyers Today
According to Wahi’s 2025 Homebuying Pressure Point Survey, 54% of Millennials and 41% of Gen Z feel pressure to buy a home. This urgency is driven by the increasing value of homes over the decades, with 51% of non-owners being unhappy with not owning a property.
Unlike previous generations, Gen Z and Millennials came of age during multiple economic shocks, including the 2008 financial crisis, the COVID pandemic, and Canada’s most rapid interest rate hiking cycle in decades. As a result, they tend to be more cautious with debt, more skeptical of traditional wealth-building paths, and far more driven by affordability and lifestyle fit over long-term resale value.
According to Royal LePage, 84% of Canadian Millennials and Gen Z, born between 1986 and 2006, still believe that homeownership is a worthwhile investment. Many are prepared to make significant lifestyle sacrifices to achieve it, such as postponing education, retirement savings, travel, or other investments. To achieve their goal of homeownership, 30% of those surveyed are living with their families and saving for a down payment while paying little to no rent.
Top Real Estate Priorities for Millennials and Gen Z
Price and location are still significant factors, but younger buyers often define “location” in a different way. Instead of downtown status, they seek vibrant, walkable communities with good transit access, local amenities, and flexible live-work arrangements.
Some of the top housing priorities among Millennials and Gen Z include:
- Energy Efficiency – Preference for properties with newer sustainable materials, solar energy, water-efficient features, and energy-efficient appliances.
- Private Outdoor Space – A backyard, balcony, or patio is at the top of their wish list.
- Pet Friendly – A fenced yard, pet-friendly flooring, and dog wash stations.
- Home Office – Space to comfortably work from home with natural lighting.
- Open Layouts – Open kitchen, flexible rooms that can transform from workspace to guest room, and minimal modern designs.
- Smart Home Technology – Integration of smart security systems, smart thermostats, smart lighting, and voice-activated systems.
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New Approaches to Financing a First Home
As real estate prices have surged, younger Canadians are rewriting the rulebook on how they afford a home. While 47% of Millennials and Gen Z say they will not receive any financial support from family toward their home purchase, 32% say they will receive some form of financial support.
The mortgage stress tests, high interest rates, and inflation have made affordability a top concern. Many young homebuyers are seeking ways to improve their monthly cash flow or reduce upfront costs. Other financing trends include:
The Rise of Digital Lender Tools
What is one significant generational difference between the new generation of Millennials and Gen Z buyers? Comfort with technology. Younger Canadians expect a seamless digital experience from browsing listings to mortgage approval. They want speed, transparency, and autonomy.
Millennials are the largest demographic of homebuyers in Canada today, with Gen Z following closely behind. Adapting to their values isn’t optional; it’s the future of the mortgage and housing market.
According to Scotiabank’s 2024 Housing Poll, 34% of Gen Z, who are the first fully digital generation, place the highest importance on their ability to complete the entire mortgage application process online.
Frequently Asked Questions (FAQ) About Younger Canadians’ Homebuying Trends
Do Gen Z and Millennials still believe homeownership is a good investment?
Yes. Despite affordability challenges, a majority still view homeownership as an important life goal and a form of financial security.
Are younger Canadians more likely to buy with family or friends?
Co-buying is increasingly becoming more common, especially in high-cost areas. Many younger Canadians are buying homes with friends or family rather than spouses, or are relying on gifted down payments to afford a home.
What sacrifices are young Canadians making to afford a home?
Younger buyers are willing to delay major life events, live with family longer, or relocate to more affordable cities. Many also cut back on lifestyle spending or co-buy with others to reach their homeownership goals.
Final Thoughts
Millennials and Gen Z Canadians are redefining what homeownership means and how to achieve it. With a strong belief in the long-term value of owning property, they’re navigating affordability challenges by prioritizing function, flexibility, and emerging technologies. They’re also adapting their homebuying strategies, from living at home longer, receiving financial support from family, and co-buying to make homeownership a reality.
Whether you’re buying your first place, renewing at a higher rate, or considering a refinance, nesto mortgage experts are here to help. Starting with a fully digital mortgage application, we’ll work with you to tailor your strategy to your specific goals and lifestyle.
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