The majority of millennials are now in the market for recreational real estate.
A new RE/MAX survey conducted by Leger found 56% of millennials are looking to purchase a recreational property — up 14 per cent from 2018, when 42% were considering buying recreational property.
RE/MAX says the increase in buying intentions among younger people marks the beginning of a new trend in the recreational market.
“We are finally witnessing the long-anticipated generational shift of purchasing power from baby boomers to millennials,” says Christopher Alexander, executive vice-president, RE/MAX of Ontario-Atlantic Canada.
“With the high cost of urban living taking many young homebuyers out of those markets, more millennials are turning to recreational properties as a viable option for home ownership.”
RE/MAX says price remains the top consideration for recreational property buyers. Liveability also plays a crucial role in the selection process.
“This new buyer demographic comes with a different lifestyle and property criteria than those of their boomer counterparts,” Alexander adds. “Factors like Internet connectivity, recreational activities and proximity to towns with urban conveniences are becoming a more important selling feature.”
However, real estate experts say first-time homebuyers aching to get into the real estate market should be cautious about trying to bypass expensive urban housing by purchasing a recreational property first.
“It’s more of a lifestyle choice than it is a great investment choice,” says Brad Henderson, former president and CEO of Sotheby’s International Realty Canada.
While more affordable than urban housing, recreational properties typically appreciate at a slower pace than city homes, Henderson said in an interview with The Canadian Press.
“So if not on a lake or close to mountains, those properties follow the market versus lead it, whereas well-located properties in Toronto, Vancouver, Calgary and Montreal will tend to appreciate at a faster rate.”
Canadians have been buying recreational land before a principal residences for decades, often parking a motor home or pitching tents until ready to build.
However, the rising cost of urban housing may be opening the idea to more buyers.
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