Buying a Home is Not Just for Couples

It seems that there is a shift happening these days, with the complexion of the homeowner demographic changing slightly.
According to a study released by Genworth Financial earlier this year, a quarter of the home buying public in 2011 through to 2012 are single.
This marked increase is happening for a number of reasons. The environment is proper- both socially, and from an affordability standpoint for many to jump into home ownership on their own, rather than waiting until they are part of a more traditional, dual-income couple.

“The pride that comes with being a homeowner need not be reserved for those who make up one half of a twosome,” says Jim Rawson of Invis.”Today, a number of affordable and responsible home ownership options are available, no matter your relationship status – it just takes a little bit of research and expert guidance to make the best choice.”

Statistically, people are postponing getting married, or entering into more committed relationships until later in life, when they have had a chance to establish careers and other interests. They are, however, not as willing to postpone home ownership.  They are savvy, aware of their options, and keen to start building equity.

Speaking to Propertywire.ca, Brad Compton, Mortgage Agent, Invis, cites affordability as the main driver towards this demographic shift: “Affordability is a major factor. Interest rates have been very low, and are allowing for a single income to purchase more.”

There are other demographic shifts taking place as well: “More young women are buying places by themselves. It has become more socially acceptable…Many feel, why should I wait?” This is perhaps a combination of the opportunities availed in the current borrowing environment, and a changing social attitude.

Seemingly, taking on a debt that has traditionally been managed with two incomes,  there may challenges faced by this group.  “It really comes down to down payment, “says Compton.  “Many more people are using their RRSP’s. Many of these single home buyers are in their late 20’s-early 30’s, and have been working for a few years- and have had time to accumulate funds in an RRSP- that they can use. Also, many people are getting gifts from their parents to help.”

This change requires support in many forms from the marketplace- and not just in terms of securing financing.  “It is also up to the Realtor to find their client just the right place at just the right price. Perhaps they should be looking at a small house instead of a condo. Many can afford to play by the same rules as a couple- they are playing on the same field.”

Compton reminds too, that there are other options available to single people seeking home ownership: inclusion of child support as income and/or having a strong co-signer, for example.

So, for those wishing to target this emerging demographic?  Although some of these single home buyers come from situations like divorce, many are young, and striking out on their own for the first time.  Compton says that in his experience, he has had the most success grabbing these clients in the mediums in which they frequent.  “For the most part, this demographic is young and tech savvy- and hooked into social media.  And most of the referrals from this group are young as well, and are responding to more ‘generational marketing’.”

- Property Wire Canada
Wednesday, 01 June 2011 10:44 Newsroom