Multi-generational living becoming the new normal in Niagra and beyond

• Homebuyers are adopting multi-generational buying strategies to tackle high housing costs, especially in regions like Niagara.
• Canadians are adopting more European mindsets on buying property over life-long renting.

As housing costs continue to strain homebuyers, multi-generational buying strategies are reshaping how families approach homeownership, particularly in regions like Niagara.

We spoke with Marlene Heemstra Ouwendyk, broker at Boldt Realty in the Niagara region to discuss creative tactics buyers are using to crack the notoriously difficult housing market.

Multi-generational living: Financial necessity is driving innovative living arrangements for buying hopefuls, allowing people who might never get on the property ladder alone a chance of homeownership. "What people are doing is they're amalgamating their money with their children... putting their financing together and saying, 'let's buy something that we can both live in,'" explains Heemstra Ouwendyk.

She emphasizes this isn't about dependence but rather strategic collaboration: "I don't know if you necessarily call it the 'bank of mom and dad'; I think it's blended banking that we're seeing. And I think it's brilliant."

Immigration's influence: Cultural norms from newcomers in the area are in large part responsible for influencing how homebuyers approach new purchases and mortgages: "We have such an influx of different nationalities now in the Niagara region... they're bringing their trend of multi-generational ownership from their home countries in Europe or India or elsewhere here," says Heemstra Ouwendyk.

Housing affordability crisis: "The cost of homes has gone up so dramatically," Heemstra Ouwendyk points out. "You can't buy a house for $350,000 and you're lucky if you can get something starting in the $500s."

Down payments in particular is where Heemstra Ouwendyk believes most new buyers are getting financial assistance from parents. "Buyers in their 30's can afford a mortgage, but to save enough of a down payment to get into the market is a long time. The government has tried to ease this, but it’s still considerable, and if you’re renting or have kids it’s a challenge to be saving for months or years at a time while managing expenses."

Inheritances: Baby boomers are taking a proactive approach to inheritance, often directly funneling it into their children's home purchases. "Instead of their children waiting till they pass to get their inheritance, they're helping their kids out earlier," Ouwendyk notes, implying that money is actively being used for younger generations to get on the property ladder. "They're saying, 'I want to see you enjoy some of your inheritance while I'm still here to see the smile on your face to start you off on the right track".

Changing mindsets: Canadian homebuyers are adopting European perspectives on mortgages. "The people in Europe have had their heads wrapped around this for years already, 'I'll probably will always have a mortgage'," says Ouwendyk. This shift in thinking reframes perpetual mortgage payments as more of a personal benefit: "If you were renting, you'd always be paying rent, but at least you're paying off something you own."