As Canada's population ages, delving into the dynamics of senior households becomes crucial for understanding the evolving real estate market. The Fall 2023 Housing Market Insight indicates that the propensity of seniors to sell their properties peaks in more advanced age groups. While a significant surge in listings may take a few years, it's essential to anticipate how this demographic shift will shape the housing market. Read more below.
It's important to understand the impact of senior households on the real estate market as Canada’s population continues to age. This understanding will give us a better idea of how the housing market in this country might evolve in the coming years.
According to our Housing Market Insight, the proportion of senior households who sell their property is elevated only in relatively advanced age groups. It will therefore take another few years to see a truly significant proportion of senior households list their properties for sale.
The findings also show that the housing preferences of Canadian households change as they age. As they get older, more households choose to move into a condominium, to rent a home and sometimes to downsize their living space. However, these trends remain rather limited in scope for the time being.
Among the 3 biggest metropolitan areas in Canada, households in Vancouver and Toronto are the most likely to transition to condominiums. Whereas in Montréal, senior households tend to move more into rental housing.
It's clear that most senior Canadian households, especially younger seniors, are staying in their existing homes. Solutions aimed at increasing supply from existing units, like creating secondary suites or laneway homes, could be considered.
As the Canadian population continues to age, the impact of senior households on the real estate market can’t be ignored. Knowing their behavior on the real estate market can help us exploring better ways to increase supply on the real estate market.