Georgetown, Ontario – As the population of elderly homeowners in Canada continues to age, the desire to stay in their family homes for as long as possible is becoming increasingly common. Many seniors are now delaying the sale of their homes, putting pressure on the housing market, according to a report by the Canadian Mortgage and Housing Corporation (CMHC).
The report, titled Understanding the Impact of Senior Households on Canada’s Housing Market, found that the sell rate for each five-year age cohort for those aged 75 and over has been trending downward since the early 1990s. This trend has led to a decrease in the availability of housing stock and an increase in housing prices.
One of the contributing factors to this trend is the desire of seniors to remain in their current homes due to better health, wealth, and a lack of suitable housing options. The report also highlighted the reluctance of many seniors to downsize, as they often find limited housing variety in their communities and prefer to stay close to their friends and familiar surroundings.
The CMHC report also noted that seniors are increasingly staying in single-family homes with three or more bedrooms, with many only using a small part of their house and closing off or limiting heating in the rest. This trend is also evident in the United States, where empty-nest baby boomers own a significant percentage of large homes with three or more bedrooms.
Additionally, reports by other organizations have found that seniors are most likely to leave their homes for a retirement home only when access to home care and other services become a challenge. The desire to stay in their homes as long as possible is further fueled by the high cost of moving, including expenses for preparing the house for sale, disposal of unwanted items, staging, packers and movers, real estate agent and lawyer fees, property transfer taxes, and potential condo or retirement home fees.
As the population of seniors continues to grow, the trend of delaying the sale of family homes is expected to have a significant impact on the housing market in the coming years. With better health and wealth, as well as a lack of suitable housing options, many seniors are choosing to stay in their homes, creating a housing crunch and impacting housing affordability for younger generations.
Overall, the delay in the sale of family homes by seniors has broader implications for both the housing market and the financial well-being of seniors, contributing to ongoing conversations about housing affordability, supply, and the availability of suitable housing options for all members of the community.