Gen Z housing hacks for the return-to-the-office era – MoneySense

Even if the The Bank of Canada’s interest rate cuts making headlines, affordability challenges continue to pressure Gen Z and younger millennials from both sides: rising rents and record-high housing costs.

“The return to the office has truly redefined what ‘affordable’ means,” said Rishard Rameez, CEO and co-founder of Zowna buyer-focused real estate platform designed to help renters transition to ownership ‘faster and with much less stress’.

Built for transparency, Zown’s model combines paid brokers, trusted lenders, and instant pre-approvals. “Our goal is to put buyers first, not the system, by giving them more transparency, more support and even up to 1.5% of the home’s purchase price back at closing,” Rameez explains. “To date, we have supported more than $300 million in transactions and helped thousands of Canadians take the next step toward homeownership with confidence.”

The return to office squeeze

As more companies call workers back to the office, both hybrid and full-time, young renters are being forced to rethink how – and where – they live. “Many young renters who moved to smaller cities during the pandemic now face long commutes or higher rents if they want to live closer to work,” says Rameez. “Many are opting for smaller spaces downtown, sharing rent with friends or even taking micro-apartments to shorten travel time.”

The financial pressures of this shift go beyond just rent. “People are considering the total cost, not just rent, but transportation, groceries and time, and trying to find a balance between affordability and quality of life.”

Those who cannot afford downtown prices commute longer distances to and from work every day. “We are seeing a growing number of renters who are priced out of the center and are now opting for longer commute times,” he says. “Many young professionals working in the city come from places like Hamilton, Kitchener and even Niagara. They spend hours commuting every day – time that could otherwise be spent with family or personal pursuits.”

Despite the routine, many believe the math still makes sense. “For those who drive, the cost of parking and petrol is often still cheaper than renting in the city centre, demonstrating just how unaffordable the [Toronto] has become the core.”

According to Rameez, this is not only an economic shift, but also a psychological one. “People want flexibility, not just geography. During the pandemic, many prioritized space; now they prioritize access.”

The double burden of housing affordability

Even as interest rates are eased by the central bank, “affordability is still limited by limited supply and high demand,” says Rameez. “The problem is structural; there are simply not enough houses being built fast enough. When interest rates fall, demand jumps back up almost immediately, causing prices to rise again.”

And for renters: “The effect is even more muted because rents are not directly linked to borrowing costs. What we see is that people earn the same, but pay more for everything: housing, food and transportation, leaving very little room for savings.”

That shortage has led to what Rameez calls a “double burden”: the simultaneous pressure to keep up the rent and save for a down payment on a house. “A recent report shows that almost half of young Canadians now spend more than 50% of their income on rent, leaving very little room to save for a down payment or build an emergency cushion,” he says. “They are caught in a spiral where rents continue to rise faster than wages, leaving even the most disciplined savers feeling like they are standing still.”

To make matters worse, many homeowners age 55 and older are choosing not to downsize because they can’t find suitable alternatives or don’t want to give up their low mortgage rates, he adds. “That keeps much-needed housing stock off the market and makes it even harder for younger buyers to find entry points.”

Yet Rameez sees opportunities in the cracks. “We’re seeing many renters now debating whether it makes more sense to own a home, especially as apartment prices have fallen. In some cases, the cost of owning your own home is only a few hundred dollars more expensive than renting, making buyers take a second look.” He notes that Zown has “seen a 15 to 20% increase in interest from first-time buyers in the downtown apartment segment, something we haven’t seen in a while.”

Related reading: Mortgage Guide for Generation Z: The Real Cost of Home Ownership for Young Canadians

Creative home hacks are on the rise

For those who still rent, flexibility and creativity have become survival tools. “Co-living is definitely backbut it looks different now, organized, managed and community-driven,” says Rameez. flexible leasing models where people can move within a network between cities or properties. It is ideal for younger professionals who want stability without being cooped up.”

Compact living is also emerging. “Micro apartments and modular homes are also gaining popularity in urban centres,” he adds. “It’s about efficiency, using space smarter, not necessarily smaller.”

Living between multiple generationsonce considered a last resort, has quietly gone mainstream. “A few years ago, living with parents was often seen as a setback; now it’s a financial strategy,” says Rameez. “It allows younger Canadians to save, pay off debt or build their down payment faster.”