View Photos
View Attendance
View Presentations

On September 29th, industry leaders and real estate enthusiasts gathered at the Le Parc Hotel in Markham to discuss a familiar topic in today’s media: Generation Y. The event’s focus was to discuss how to best attract this generation, which loosely includes the cohort born between the early 1980s and early 2000s, to the 905 area (a common synonym for the Greater Toronto Area).

Ahead of the event, ULI Toronto conducted its own survey among its members who are under the age of 35 to see if their preferences matched the perceptions we often hear about when discussing millennials.

Highlights from the survey include:

• 85% of respondents answered the questions in ways that were markedly pro-downtown.
• 80% of respondents felt that the average Gen Y individual only has around $10K-$30K to spend on housing each year.
• Respondents felt that the Gen Y-ers who are starting families would likely consider moving to the 905, although 15% of respondents did not think that starting a family would likely make people look for larger homes. This is, perhaps, related to the perceived lack of affordability in owning a home, though it could possibly indicate a trend towards smaller family homes as a point of reference.

When asked to list the three things that are important when evaluating neighborhoods, respondents named the following as top priorities:

• Career goals (45%)
• Easy access to key places (38%)
• Short commute/well-developed public transit/walkability (14%)
• Proximity to entertainment (30%)
• Proximity to friends and family (25%)
• Proximity to amenities (20%)

Notably, only 11% of respondents specifically mentioned family in any capacity. The preference for close-by entertainment suggests that a thriving arts community may be an overlooked way to draw in more Gen Ys to an area.

Richard Joy, ULI’s Executive Director, noted that similar, more exhaustive polling conducted in the United States did not reveal as notable a difference between the preferences of millennials to own cars and eventually move to the suburbs when compared to the broader US population.

Panelists for the event included Ronji Borooah (City of Markham), Lisa Lafave (HOOPP), and Marvin Green (River Oaks Group). A panel discussion followed, which was moderated by Lou Iafrate from Altus Group and included Matthew Slutsky (BuzzBuzzHome Corp.) and Harpreet Zingh (Lab-B).

The presentation was informative, with each presenter including statistics and visuals to illustrate their findings and various points of view. Three takeaways from the Gen-Y in the 905 even include:

Economics Play a Central Role in Defining Gen-Y Needs

Iafrate, Executive Vice-President of Research Valuation and Advisory from Altus Group, noted that the importance of walkability to millennials is often a function of economic circumstance. Zingh agreed with this notion, indicating that millennials graduate with higher debt levels and face an economy that offers fewer job prospects and lower wages when compared to previous generations. Zingh also said that workers are becoming more mobile. In addition, the number of workers pursuing freelance opportunities make competition on lifestyle a greater consideration for cities.

Suburban Areas Need to Create Higher Density to Justify Transit Investments

All panel members agreed that higher density is a key component to increasing transit options. Borooah, an architect for the Town of Markham, indicated that the GTA is expected to grow by 3 million people over the next 25 years, 500,000 of which will likely settle in Toronto. He stated that of the 200 million square feet of office space in the GTA, the 905 current has 66 million square feet. As of today, over half of these office spaces do not have transit access. Lafave, a Senior Portfolio Manager at HOOPP, said that HOOPP will not invest in properties outside of transit areas. Slutsky, founder of BuzzBuzzHome, suggested that density must start with residential accommodation.

Walkability and Character of Neighbourhoods are Important

The importance of walkable neighbourhoods was a reoccurring theme throughout the presentation and follow-up discussion. Millennials find this aspect of community extremely important. Green, President of River Oaks Group, presented images of neighbourhoods that place higher priority on its design and functionality. He indicated that, in some cases, millennials choose to locate in areas such as Cobourg with a higher quality of life and good neighbourhood feel at the expense of their commute. Slutsky suggested that cities with authentic historic areas should take advantage of their existing spaces (i.e. Unionville in Markham). He also noted that transit that allows people outside of these local areas to reach the neighbourhoods is equally important to ensuring their vibrancy.