Canada’s population is aging. Data shows there were 5.9 million Canadians aged 65 + in 2016. Further, one in every five Canadians falls within the range of 54 – 65 years old. There are now more seniors living in the country than children. The situation poses challenges to Canada’s housing market.
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All eyes are now on Canadians reaching or have already reached retirement age. The impact that this sector will have on housing will largely depend on how these people will decide in terms of housing choices.
An economist from the TD Bank gives two possible directions: Seniors will either opt to downsize to condo units or cottages, or they will rather choose to stay in their current homes for the rest of their lives and look for extra source of income.
Where Seniors Live Now And Where They Might Go
Considering the ratio of Canadian seniors, we are putting under the lens more or less 7 million people out of the total population to keep track of their movement. Most of those belonging to this segment now reside in low-rise houses. That includes townhouses and detached homes as their current abodes.
If these people decide to leave their current homes and decide to downsize, we expect a sizeable impact to happen in the condo or cottage sector. While this is happening, ease on the low-rise section will also be felt.
Another possibility is for these people to decide to find low-rise houses but in areas other than the major urban centers.
Movements away from urban areas towards areas that have less dense housing are highly likely. Analysts predict seniors to move into suburban areas and even further into more far-flung less dense communities like Keswick and Bradford.
Among these people, there will be a search for value for the equity that they have built over the years. Some of them might not invest in a new house at all or just opt to stay longer in their current single-family homes.
From Suburban To Less Dense Communities
Movements are going to be slow as, by definition, demographics are slow moving. Just like most of the population, any movement among the seniors will be focused on the suburban areas like Newcastle as targets.
However, in the next 15 years, the bleeding that’s happening in Toronto and Vancouver will be also experienced by suburban areas. Right now, prices are increasing in those areas, and increasing house prices are pushing out first-time local buyers. The next search stop for these people is a community that is less dense and with more affordable prices.
Among those we expect to join the throngs of searchers in the coming years are seniors and most of them have been vocal in their intent. They want to move to a quieter place where the environment is green. They also look forward to making bonds with neighbors and engaging in relaxing conversations.
If you are looking for the best place to be in Canada for your retirement, talk to a competent mortgage broker to find the right house for you.
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