The housing market in Canada has always been influenced by who’s buying, who’s renting, and what stage of life people are in — but lately, those patterns are shifting in some pretty big ways. It’s not just about price tags anymore (though let’s be real, those still matter a lot). It’s about what different age groups actually want, what they can afford, and how they’re adapting to the current market.
Let’s take a closer look at what’s happening across generations — and what it means if you’re buying, selling, renting, or investing.
Gen Z (20s to Early 30s): Renting More, Waiting Longer to Buy
Most of Gen Z is still in the early stages of their careers, and they’re walking straight into one of the most expensive real estate markets Canada’s ever seen. For a lot of them, buying a home just isn’t on the table right now.
According to StatCan, in 2022, about one-third of young Canadians said rising costs had made them rethink buying a home altogether — or even moving to a new rental. And as of late 2023, folks under 25 made up only 1% of mortgage holders in the country. That’s not because they don’t want to buy — it’s because they simply can’t afford to.
Most are sticking to rentals, especially in big cities where jobs are. But even there, they’re getting creative: co-living arrangements, basement suites, or trading space for location. Some are starting to look outside the major urban centers — places like Hamilton, Halifax, or Calgary — in search of more affordable first-home options.
When they do manage to buy, it’s often a condo or townhome with help from family. And while this generation might be entering the market slower than previous ones, they’re watching it closely and planning for their move when the time is right.
Millennials (30s to Early 40s): Moving Up — But Carefully
Millennials are in that classic life stage where they’re getting married, having kids, and needing more space. Some bought during the low-interest-rate boom, and now they’re trying to hang onto those mortgages for dear life. Others are still trying to get a foot in the door, especially after years of rent increases and rising home prices.
Affordability is still a huge hurdle. A 2024 poll showed homeownership among young Canadians (18–34) dropped from 47% to just 26% in a few short years. But interestingly, most still say they plan to buy within the next five years.
The pandemic shifted how millennials think about housing. Remote work opened the door to leaving pricey cities like Toronto and Vancouver in favor of places where you can actually get a backyard and maybe even a home office. That’s pushed demand in spots like Ottawa, Kitchener-Waterloo, and parts of Alberta, where the cost of living is lower but the quality of life is still high.
This group is also practical. They’re willing to compromise on things like size or finishings if it means owning a home — but they’re also asking smart questions about resale value, mortgage flexibility, and long-term costs. They aren’t just looking for a house. They’re looking for a plan that actually makes financial sense.
Gen X (Mid-40s to Late 50s): Holding Steady, Looking to Upgrade
Gen X is in their peak earning years, and a lot of them already own homes. Many bought years ago, so they’re sitting on solid equity and low mortgage rates — and they know it. But they’re also starting to think about what’s next: upgrading, investing, or helping their kids buy.
This generation is making strategic moves. Some are buying larger homes to accommodate multi-gen living. Others are downsizing slightly but trading up in location — moving to more walkable communities or areas with better amenities. And quite a few are adding rental properties to their portfolios.
Places like Mississauga, Burnaby, and Quebec City are popular with this group — offering a mix of comfort, convenience, and investment potential.
They’re not jumping into anything fast, though. Gen X is cautious, calculated, and focused on stability. They’re not chasing trends — they’re making smart, long-term plays.
Baby Boomers (Late 50s to 70s): Not Downsizing Like You Think
We’ve been expecting boomers to sell their big suburban homes and move into condos for over a decade. But many of them? They’re staying put.
A lot of boomers are choosing to age in place — upgrading bathrooms, adding stair lifts, renovating basements — rather than move. And with home values where they are, who can blame them? Selling and buying something smaller doesn’t always make financial sense when fees, taxes, and lifestyle changes are factored in.
Some boomers are renting instead, especially solo seniors who don’t want the hassle of ownership anymore. Interestingly, seniors are now the largest group of solo renters in Canada — and many of them are renting larger places, not downsizing into tiny units.
Cities like Victoria, Kelowna, and the Niagara Region continue to be go-to spots for retirement, thanks to healthcare access, walkability, and a more relaxed pace of life.
Multigenerational Families & Newcomers: Living Under One Roof
With affordability as tight as it is, more families — especially newcomers — are living together across generations. It’s a cultural tradition in many parts of the world, but here in Canada, it’s also becoming an economic strategy.
Larger homes with finished basements, in-law suites, or potential for secondary units are in high demand. These families are looking for space, yes — but also community. Areas like Brampton, Surrey, and Winnipeg are seeing strong demand because they offer both housing stock that supports this kind of living and strong cultural or community infrastructure.
For many newcomer families, the first stop is rental housing. But the long-term goal is ownership, and many are entering the market as extended family units, pooling income and supporting each other financially.
Across the Board: Affordability Is Everyone’s Problem
It doesn’t matter what age you are — affordability is top of mind. The average home price in Canada as of early 2025 is sitting just under $670,000. Renters now make up a full third of Canadian households — the highest it’s ever been. That tells you something.
People aren’t just trying to find homes anymore. They’re trying to make the numbers work — and that’s leading to big changes in how and where Canadians live.
So What Does All This Mean for Real Estate Investors?
This isn’t a one-size-fits-all market anymore. It’s layered. It’s nuanced. And if you’re not paying attention to how different groups are behaving — Gen Z renters, millennial buyers, boomers aging in place — you’re going to miss opportunities.
Investors who understand these trends can buy smarter, rent better, and build portfolios that are actually aligned with what people need today. Whether that’s adding a basement suite, focusing on multi-gen properties, or targeting emerging rental markets, the key is staying in tune with real people, not just price charts.
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