Paula Siemens

Whatever the nine million-strong Canadian boomer cohort does creates waves.  As the baby boom generation¹ ages, there will be an undeniable impact on the housing market across the country, according to the Canada Mortgage and Housing Corporation (CMHC).  Recently CMHC described² how many in this group will shift from being "move up buyers" wanting larger homes to "empty nesters" looking to downsize, and in a decade or so, the housing preferences of seniors will be increasingly felt in the market. 

Here is an outline of what the housing market in Canada could look like in the coming years as our population ages. 

►Present to 2011 - Move Up Buyers

During these years a desire for larger homes among married couples drives mobility in the real estate market.  A single detached home is the ideal for many, although housing costs in larger urban areas may prompt some buyers to opt for townhomes or larger condo units.  While mortgage and personal debt is significant, rising incomes among boomers support savings.  Home equity lines of credit remain a common option for homeowners. 

►2011 to 2016 - Empty Nesters

With more and more boomers exiting the labour force, and with family size decreasing as children reach adulthood, downsizing dominates in these years.  Aging but active boomers increasingly seek out housing that is more compact, lower maintenance, and closer to amenities.  High-end condominiums and one storey homes in established neighbourhoods are popular housing options. 

Increasingly, first time buyers from the children of boomers (so-called echo boomers) drive demand in the real estate market as first time buyers. 

►2016 to 2035 - Seniors

Renovated, maintenance-free homes with secondary suites are sought after, and demand for adult lifestyle communities reaches a peak.  Living arrangements allowing seniors to live with relatives are popular.  However, shelter costs become a greater challenge as more boomers are retirees on a fixed income and draw on other assets.   

While these are approximate sketches of upcoming trends, there is little doubt that demographic shifts in Canada's population will have a significant impact on the decisions of homeowners and real estate investors in the years to come.

¹ Boomers are typically described as those born between 1947 and 1966, now aged 41 to 60. ² Housing Outlook Conference in Toronto, Nov 2006.

Independent Mortgage Advice Is Yours

To meet your needs, or those of friends & family,

I can...

• Shop the market to find you the best rates and mortgage products, whether you are purchasing a home, refinancing or renewing your mortgage.
• Counsel you on credit and mortgage qualifications.
• Simplify the financing process.

 

Paula Siemens

Mortgage Consultant

Phone: 604-351-7438

Fax: 604-648-9106

Email: psiemens@direct.ca

Web: www.yourbcmortgagebroker.com

 

902-777 West Broadway Ave., Vancouver, BC V5Z 4J7