The traditional path to homeownership, buy at 25, marry at 28, have kids at 30, no longer describes how most people actually live. Gen Z and Millennials are creating their own paths, and their approach is changing how real estate markets function in Canada.

These aren't minor tweaks to the old playbook. They're fundamental shifts in what people expect from housing, how they afford it, and what they're willing to sacrifice to get it.

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The Pressure Is Real

54% of Millennials and 41% of Gen Z feel pressure to own property, according to Wahi's 2025 Homebuying Pressure Point Survey. That's significantly higher than the 34% national average and dramatically higher than the 13% of Baby Boomers who felt similar pressure at the same age.

The pressure isn't coming from parents or social media alone. It's rooted in economic reality. Home values have increased steadily over decades, and 51% of non-owners are unhappy about not owning property. They're watching friends build equity while they pay rent that doesn't build anything.

Despite that pressure, only 54% of respondents believe homeownership is an achievable goal. Another 26% are unsure, and 20% don't believe it's achievable at all.

That uncertainty hasn't killed the dream. Among young Canadians who don't currently own a home, 75% say they're planning to purchase a property as a primary residence in their lifetime. They're just changing how they get there.

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Co-Buying: The New Normal

32% of Gen Z homebuyers are considering co-buying a home with a friend or family member, according to the NextGen Homebuyer Report. That's nearly double the 18% of Millennials who said the same.

This isn't theoretical. Real estate professionals report seeing it happen regularly. Siblings are buying homes together. Friends who met in college are pooling resources for condos. Parents are selling their homes and combining income with their children to buy single-family homes with separate in-law apartments.

In Toronto and Vancouver, where prices regularly exceed $1 million, 24% of urban Gen Z adults are considering co-ownership with family, and 13% with friends or non-family members.

Elena Novak, a real estate researcher at Property Checker, told Fortune that she's seeing groups expand beyond traditional partnerships. "At first, it was two siblings or close college friends pooling savings to snag a condo that neither could afford alone. Now I'm seeing triads of coworkers or even small house shares of four people on the hunt."

Co-buying solves multiple problems. It splits the down payment, making the initial hurdle more manageable. It combines incomes, helping buyers qualify for mortgages they couldn't get alone. And it reduces monthly costs, making carrying the property more sustainable.

But it also creates complexity. Co-buyers need clear legal agreements about ownership percentages, decision-making authority, what happens if someone wants to sell, and what happens if someone dies. It mimics a business partnership more than a traditional family arrangement.

For developers and landlords, co-buying creates interesting dynamics. Groups of friends or siblings might have different preferences than married couples. They might value multiple bathrooms more than a master suite. They might prefer open layouts that accommodate group living over traditional separated spaces.

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House Hacking: Your Home as Income

23% of Gen Z buyers plan to rent out part of their home, compared to 17% of Millennials. This reflects the growing popularity of "house hacking," where homeowners rent out a room, basement, or accessory dwelling unit to offset mortgage payments.

Some buy duplexes or triplexes, living in one unit while renting the others. Some create basement suites or laneway houses. Some rent rooms on Airbnb or Vrbo, turning guest bedrooms into short-term rental income.

Gen Z's comfort with technology and side hustles makes this approach natural for them. They view homeownership not just as a milestone but as an opportunity to build wealth and generate passive income.

For Kelowna specifically, this trend matters. The city has been tightening short-term rental regulations, but longer-term house hacking through basement suites or room rentals remains viable. Purpose-built rental buildings like fourplexes or sixplexes that accommodate owner-occupants who rent out other units align with how younger buyers think about property.

The house hacking mindset changes what buyers look for. They want properties with income potential. Homes with existing basement suites or the ability to add one. Properties zoned for duplexes or triplexes. Locations where rental demand is strong enough to support the strategy.

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The Sustainability Requirement

Energy efficiency isn't a nice-to-have for younger buyers. It's a prerequisite. Properties with newer sustainable materials, solar energy, water-efficient features, and energy-efficient appliances rank at the top of their wish lists.

This isn't just environmental consciousness, though that's part of it. It's financial pragmatism. Energy-efficient homes cost less to operate. Smart thermostats, LED lighting, and high-efficiency HVAC systems reduce monthly utility bills. For buyers stretching to afford mortgage payments, those savings matter.

BC's Step Code requirements for new construction align with these preferences. Buildings that meet higher energy performance standards attract younger buyers who understand that upfront efficiency translates to long-term savings.

Developers who embrace sustainability features aren't just doing good marketing. They're meeting baseline expectations for an entire generation of buyers. Properties that fail to meet these standards risk being overlooked entirely.

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The Digital-First Expectation

34% of Gen Z place the highest importance on their ability to complete the entire mortgage application process online, according to Scotiabank's 2024 Housing Poll. They're the first fully digital generation, and they expect every part of the home buying process to reflect that.

Virtual tours aren't conveniences. They're requirements. Digital documentation isn't modern. It's expected. Real-time communication through apps and messaging isn't innovative. It's the baseline.

This extends beyond just the buying process. Smart home technology, integration of security systems, smart lighting, voice-activated systems, these features appeal to younger buyers who expect their homes to be as connected as their phones.

For real estate professionals, this means adapting how services are delivered. Gen Z and Millennials will research properties online long before contacting anyone. They'll compare dozens of listings, read reviews, check neighborhood data, and form opinions before making contact. When they do reach out, they expect quick, clear responses through their preferred channels.

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What They're Willing to Sacrifice

The path to homeownership for younger Canadians involves sacrifices that previous generations didn't face to the same degree.

30% are living with their families and saving for a down payment while paying little to no rent. 26% are living with roommates or friends to reduce living expenses. Another 26% are cutting back on entertainment and vacations.

Many are postponing education, retirement savings, travel, or other investments to prioritize homeownership. Some are delaying marriage or starting families. Others are relocating to more affordable cities, trading proximity to job markets for housing they can actually afford.

While 47% of Millennials and Gen Z say they won't receive any financial support from family toward their home purchase, 32% say they will receive some form. That family support, whether gifted down payments, co-signing mortgages, or co-purchasing properties, has become normalized in ways it wasn't for previous generations.

The willingness to make these sacrifices reflects how important homeownership remains as a goal. Despite affordability challenges, despite uncertainty about achieving it, younger Canadians still view real estate as crucial for long-term financial security.

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What They Actually Want

Price and location still matter, but younger buyers define location differently than previous generations. Instead of downtown status, they seek vibrant, walkable communities with good transit access, local amenities, and flexible live-work arrangements.

The pandemic accelerated the remote work trend, and younger buyers are less tied to expensive urban centers. They're prioritizing quality of life and affordability over proximity to traditional job markets. That's part of why markets like Kelowna have seen increased interest from younger buyers looking to leave Vancouver or Toronto.

Top housing priorities include private outdoor space (a backyard, balcony, or patio), pet-friendly features (fenced yards, pet-friendly flooring, dog wash stations), and home office space that supports remote work with natural lighting and proper setup.

Open layouts rank high. Flexible rooms that can transform from workspace to guest room. Minimal modern designs. Kitchen spaces that accommodate cooking and socializing. These preferences reflect how younger people actually use space, which differs from how previous generations did.

According to the Ontario Real Estate Association, most millennial and first-time buyers in Ontario prefer detached and semi-detached homes over condos. They view homeownership as a long-term investment, not a temporary stepping stone. They want space for families, room for home offices, and outdoor areas for pets and children.

That preference creates tension in markets like Kelowna where detached homes in desirable areas push past $900,000. The gap between what younger buyers want and what they can afford drives creative solutions like co-buying, house hacking, and moving to more affordable neighborhoods or cities.

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The Wealth Gap Story

Younger Canadians face a dramatically different affordability picture than their parents did. Adjusted for inflation, homes are 7 to 8 times more expensive now than when Boomers were buying their first homes in the 1980s. Wages have stayed relatively flat.

Where a home would have cost approximately 1.6 times a family's annual income in the 1980s, it can now be higher than 8 times in the hottest housing markets. That fundamental shift explains why traditional homeownership timelines no longer work and why creative solutions have become necessary.

Despite these challenges, younger Canadians who already own property have seen significant wealth gains. According to Statistics Canada, households with a highest earner under 35 saw their median net worth increase by 179% from 2019 to 2023. That wealth concentration creates another divide within generations, between those who got into the market early and those still trying to break in.

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Recent Policy Changes Help

Federal policy changes have made higher-value homes more attainable for Millennials and Gen Z. As of December 2024, the insured mortgage price cap increased from $1 million to $1.5 million, allowing more buyers to qualify for mortgage insurance on high-value properties.

This change significantly lowered down payment requirements. In Fraser Valley, where the average home price is $1,039,351, the new minimum down payment is $78,935, giving buyers an additional $128,935 in purchasing power.

In Toronto, where the average home price is $1,118,137, the new minimum down payment is $86,814, significantly lower than the previous 20% requirement of $223,627. This allows buyers to enter the market sooner without accumulating massive upfront savings.

The Bank of Canada's rate cuts to 2.75% as of March 2025 also help. Lower borrowing costs mean more affordable monthly payments, crucial for first-time buyers stretching their budgets.

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The Competition Challenge

Gen Z and Millennials aren't just competing against each other. They're competing against more financially robust generations at peak earning potential who are looking to purchase or upgrade homes.

The median age of a homeowner in the US hit 59 years old, up from 39 just 15 years ago. In Canada, the trend is similar. Older buyers with accumulated equity, higher incomes, and better credit have significant advantages in bidding wars.

In major cities like Toronto and Vancouver, the scarcity of affordable housing options intensifies competition. Even with positive long-term outlooks on real estate investment, 60% of Canadians predicting property will match or outperform other financial investments, younger buyers face an uphill battle against better-resourced competition.

That competitive pressure drives some of the creative strategies younger buyers adopt. Co-buying, house hacking, accepting family help, and relocating to more affordable markets all represent responses to competition they can't win on traditional terms.

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The Rental Reality

While homeownership remains the ultimate goal, renting is reality for many Gen Z and Millennials. They leverage rental arrangements as a step toward accumulating savings for future purchases.

Almost 75% of millennials surveyed stated rents were within their budget, despite saving for down payments. The biggest challenge this generation faces is saving for a down payment, with over 35% needing to save up for larger down payments.

For rental property owners and developers, this creates opportunities. Younger renters want specific features. They pay attention to window direction and natural light. They prefer flooring over carpet. They want bright walls and neutral color palettes. They value high-end amenities, leading-edge wireless capabilities, and spaces that feel modern and functional.

Gen Z is entering the rental market and will soon outnumber millennial renters. When they transition from student housing to living on their own, they look for amenities similar to what they had in college. Indoor pools, gyms, communal spaces, package rooms, and tech-forward features all attract this demographic.

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What This Means for Kelowna

Kelowna sits at an interesting intersection of these trends. The city appeals to younger buyers looking to leave Vancouver for more affordable housing and better quality of life. Remote work makes that relocation viable in ways it wasn't before.

But Kelowna's housing market has its own affordability challenges. The average home price, while lower than Vancouver, still pushes many first-time buyers toward creative solutions. Co-buying is happening here. House hacking through basement suites is common. Younger buyers are prioritizing neighborhoods with walkability and amenities over traditional suburban sprawl.

The rental market in Kelowna serves as a pathway for many younger residents. High vacancy rates currently give renters options, but long-term, many still aspire to buy. Properties that appeal to younger buyers, energy-efficient, tech-integrated, with potential for income generation, will perform better as this generation gains purchasing power.

Purpose-built rental buildings that offer modern amenities, sustainable features, and digital-first experiences align with what younger renters expect. As they transition from renting to owning, those preferences carry forward.

For sellers, understanding what younger buyers prioritize helps position properties effectively. Home offices, outdoor space, energy efficiency, and smart home features aren't luxuries. They're expected. Properties lacking these elements need competitive pricing to attract younger buyers who have limited budgets and specific requirements.

For anyone navigating Kelowna's market, whether buying your first home, upgrading to something larger, or evaluating rental properties as investments, understanding how Gen Z and Millennials approach housing helps frame decisions in the context of who's driving demand and what they're looking for, and working with the team at Coldwell Banker Horizon Realty means getting guidance that accounts for these generational shifts and helps you position your property or search strategy to align with how the market is actually evolving rather than how it worked a generation ago.