Baby boomers leading the charge in luxury home purchases: report
WATCH: There’s a new snapshot of an interesting trend in Canada’s housing market, showing luxury homes are being bought by baby boomers. But, that’s leaving another generation squeezed out of the market. Robin Gill explains.
TORONTO – Baby boomers continue to drive sales in the luxury real estate market, upsizing their homes while also helping their Gen-Y offspring with home purchases, according to a new report.
The study by Sotheby’s International Realty Canada, which involved interviews with leading realtors in specific markets, examined generational differences between buyers of luxury real estate in Toronto, Vancouver, Calgary and Montreal.
It says when looking for top-tier real estate, baby boomers born between 1946 and 1964 gravitate towards traditionally prestigious neighbourhoods such as Toronto’s Forest Hill and Vancouver’s Kerrisdale.
Meanwhile, family-driven buyers from Generation X, the generation born right after the baby boomers, tend to prioritize neighbourhoods with high-quality schools in vibrant communities.
When looking for high-end homes, homebuyers from Generation Y, also referred to as Millennials, tend to prioritize trendy, urban neighbourhoods with high walkability scores.
Sotheby’s president and CEO Ross McCredie says he was surprised to discover how much baby boomer parents are helping their Gen-Y kids with home purchases.