By Rebecca Wissink
Patterns in luxury home buying in Canada are not only influenced by economic factors, but also by demographics and generational characteristics. There are three successive generations that compose Canada’s luxury real estate market - Baby Boomers, Generation X, and Generation Y. As most Baby Boomers enter retirement, and Generation Y is just getting going, Generation X is entering the prime of their lives.
Individuals belonging to Gen X as they are commonly called, are those born between roughly 1965 to 1979 (different researchers will use slightly different years) with ages ranging from about 42 to 57. This generation is considered the Bust generation, given they are a small cohort and lost between two massive generations - Baby Boomers and Millennials.
Not to stereotype, but individuals from the same generation share similar experiences, which shapes their behaviours. Known as latchkey kids given the little supervision they often had, Gen Xers are quite independent. They are often charged with being quite skeptical and lacking loyalty as well, given they relied primarily on themselves as children and saw the first wave of legal divorces. They were introduced to technology, MTV, hip-hop, grunge, and alternative rock in their formative years. As a generation, they are tech aware having been introduced to home computers as children, and have a high rate of entrepreneurialism, including being the founders of some of the biggest tech companies today, like Google. In terms of real estate, Gen X is considered family-orientated. When buying a house, this generation's priorities are proximity to schools and sufficient space for a growing family. This cohort typically receives little if any financial assistance from their families when buying a house, even for their down payment. They rely on mortgages and dual incomes, depending on the city in Canada they’re buying in.
Gen Xers tend to choose luxury homes in diverse communities. After all, this was the first generation to be exposed to mass immigration from other cultures. Those who purchase luxury homes are fortunate enough to have reached certain levels of success, professionally and financially. These buyers prefer single family homes with a minimum area of 2,500 square feet.
As the Canadian real estate market continues to develop, it becomes essential to look at the characteristics of the different segments of buyers and the market to determine future trends. It is also essential to cater to the home buyer's needs. To learn more about what the Calgary real estate market has to offer, please consult an experienced Ross Pavl ELITE Real Estate Group Realtor®, who will help you find the best Calgary luxury homes currently listed on the MLS®.
Cover photo via creative commons courtesy of EpicTop10.com
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