Canadian Seniors Aren’t Downsizing: The Housing Market Impact
More and more, Canadian seniors aren’t downsizing, rather staying in their family homes well into their 80s. This trend is largely due to a lack of downsizing options, rising moving costs, and emotional ties to their homes. Unfortunately the side effect of this is a contribution (or lack there of) to a shortage of large homes for younger families. Understanding why this trend is happening and what we need to do to address the housing market challenges that arise because of it will help create practical solutions.
Matt’s Stats
- Sell rate for seniors aged 75+: Declined by 6% since the 1990s (CMHC, 2023).
- Seniors living in large homes (2021): 29% of singles and couples aged 75+ occupy homes with three or more bedrooms.
- 91% of Ontario seniors: Plan to stay in their homes as long as possible (Deloitte, 2022).
- Projected demographic shift: Population growth in the 85+ age group will accelerate between 2030 and 2040 (Statistics Canada).
Why Canadian Seniors Aren’t Downsizing
The trend of Canadian seniors staying in their homes is driven by several factors, with one of the most significant being a lack of suitable downsizing options. James Newcombe, an 83-year-old Georgetown resident, exemplifies this. He stayed in his four-bedroom home for as long as possible, only moving when health concerns made it unavoidable. His story highlights a broader issue affecting many older Canadians: the difficulty of finding affordable, senior-friendly housing within their existing communities.
Emotional Ties
For many seniors, their home is more than just a physical structure; it’s a repository of memories and a source of stability. Canadians place a high cultural value on homeownership, making it emotionally challenging to let go.
Financial Hurdles
Moving is expensive, particularly for seniors who may have paid off their homes and are living on fixed incomes. Costs include:
- Real estate agent and legal fees
- Staging and packing services
- Property transfer taxes
- Monthly fees at retirement or condo communities
Julia Chung, a financial planner, notes that many seniors find downsizing financially impractical. In some cases, smaller homes in desirable locations with modern amenities are more expensive than their current homes.
The Impact on the Housing Market
The decision of many seniors to stay put is contributing to a shortage of larger family homes. A 2018 report by real estate economist Diana Petramala noted that baby boomers are not expected to downsize significantly until the mid-2040s. Meanwhile, millennials—now the largest demographic group in Canada—face a deficit of 70,000 ground-oriented housing units this decade.
This mismatch between supply and demand is exacerbating housing affordability issues in cities across Canada. Single-family homes with three or more bedrooms, often occupied by one or two seniors, could otherwise house growing families.
Potential Solutions to Eliminate Reasons Why Canadian Seniors aren’t Downsizing
Expand Housing Options
- Build smaller, senior-friendly homes within existing communities.
- Increase the availability of secondary suites and laneway homes to encourage downsizing while keeping seniors close to their networks.
Address Financial Barriers
- Offer tax rebates or financial incentives to offset moving costs.
- Create government-backed programs to subsidize the construction of affordable senior housing.
Enhance In-Home Services
- Provide robust in-home care and community services to delay the need for institutional care, allowing seniors to age in place comfortably.
Case Study: Brantford’s 571 West Street Development
The proposed 10-storey mixed-use building in Brantford exemplifies innovative urban planning designed to address the lack of downsizing options for seniors. Key features of this development include:
- 239 residential units: A mix of traditional retirement and independent-living units.
- Ground-floor commercial space: 435.5 m² for amenities such as a library, fitness rooms, and cafés.
- Proximity to transit: Located near major public transportation routes.
- Sustainable urban design: Compact and accessible, promoting efficient land use.
This project provides senior-specific housing options that could encourage downsizing while maintaining strong community connections. Its combination of commercial and residential uses offers a model for creating diverse and supportive housing ecosystems.
Click to view the proposal details contained in the Planning Committee Agenda on December 12th, 2024
The resistance of downsizing by Canadian seniors is a complex issue, but completely understandable. Addressing the complications that this trend creates requires innovative housing policies but more importantly community planning. By providing viable downsizing options and addressing financial and emotional barriers, we can create a housing ecosystem that meets the needs of all generations.
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