Older Canadians Increasingly Opt to Age in Place

A report from the Canada Mortgage and Housing Corporation (CMHC) highlights a growing trend among senior Canadians: many are choosing to remain in their homes as they age. This pattern is particularly evident in major cities like Vancouver, Edmonton, Calgary, Toronto, Ottawa, and Montreal.

Trends in Senior Housing

The CMHC report reveals that, as the population of senior households in Canada grows, the number of seniors selling their homes is expected to increase only among the oldest age groups. It will likely take several more years before a significant portion of senior households put their properties on the market.

Reasons for Staying Put

Several factors contribute to this trend. CMHC economist Francis Cortellino points out that today's seniors generally have higher wealth and better health compared to previous generations. "If you compare the situation of senior households today to 20 or 30 years ago, their wealth is higher and their health is better," Cortellino explained in an interview with CBC News. "These factors likely contribute to their decision to stay in their homes longer."

Insights from Real Estate Experts

Calgary Realtor Michele Swiggum, an accredited seniors real estate specialist, offers additional insights. She notes that a decade or so ago, many seniors viewed their real estate as a key component of their retirement fund. However, rising costs in senior housing have diminished the financial benefits of selling. "Many seniors realize that selling their homes doesn't free up as much equity as they anticipated, given the high costs of senior housing," Swiggum said. "This realization often leads them to decide to stay put."

Condos and Rental Housing

While condos are gaining popularity among older Canadians, the actual shift to condo living remains limited. Swiggum attributes this to the high cost of condo fees. "Condos come with a lifestyle cost," she noted. "If you don't value that lifestyle, paying those fees makes little sense."

The report also indicates that while the number of elderly Canadians opting for rental housing increases with age, this transition is also limited and occurs mainly among the oldest seniors.

Conclusion

The CMHC report underscores a significant trend: many senior Canadians prefer to age in place, driven by factors such as improved wealth and health, as well as economic considerations related to housing costs. As the senior population continues to grow, this trend will likely shape the housing market in Canada's largest cities for years to come.