Many people in the real estate industry have always assumed that the baby boomers will create an oversupply of family houses as they relocate to smaller residences in the suburbs. This assumption is still held by many, but is proving not to be true. Statistics indicate that at least half of the baby boomers who are planning to move out are not considering to downsize. This is according to a survey that was carried out by Leger Marketing. The study was conducted on homeowners who were born between 1947 and 1966.
The survey revealed that even though baby boomers are willing to move to different areas after their retirement, downsizing is not among their top priorities. 43.5% of them want houses that are about the same size or even bigger than their current residences.
There is no doubt that baby boomers form the biggest percentage of the wealthiest generation in Canada. This means that they live in large homes that have plenty of space for all their valuables. They strongly adore this space, hence downsizing is not one of the things that they can think of. It is also important to note that 78% of baby boomers in Canada owns their current homes.
As expected, there is a significant percentage of baby boomers who are more than willing to downsize. 74% of them want to downsize because they hope to cut down on the house maintenance expenses. The need to get money for retirement was also cited as one of the reasons for downsizing. Due to the poor saving culture that is exhibited by most Canadians, some boomers opt to use the equities in their current homes to fund their retirement. This makes downsizing inevitable.
Generation Y, the group that consists of people born between 1980 and 1994, were also surveyed. They discovered that more than half of home buyers who belong in this age group are interested in family-oriented homes. 51% of them yearn to own multi-story houses while 19% of them plan own bungalows. Only a small percentage of them plan to buy condos.
The survey also revealed that 56% of generation Y members would like to live in the suburbs while 22% prefer downtown. 25% of members in this generation don’t pay rent. This is because of different types of arrangements with their friends and parents.
Baby boomers living with adult children
In what seems to be the trend that is witnessed in many countries, adult children of baby boomers are not going anywhere anytime soon. One of the reasons is the scarcity of well-paying jobs. Since finding such jobs has proven to be difficult, most children, despite their age are not willing to take a plunge of finding their own living space. The quest to pursue education is also attributed to this trend. Many adult children are opting to extend their studies hence living with the parents seem to be the most viable option.
Statistics from the 2016 census revealed that 42% of the young adults (of ages 20-29) are living with their parents. In fact, some baby boomers are now opting to keep their big homes to accommodate their adult children. This makes it difficult for them to consider downsizing as an option that they can pursue.
If you’re a younger Canadian looking to break into the market, it can be hard to find an affordable place to live. The closer you want to be to Toronto, the harder it gets. Take a look at these cities near Toronto that are still affordable.
Not intended to solicit parties under an exclusive contract with a brokerage. MLS®, REALTOR®, and the associated logos are trademarks of the Canadian Real Estate Association. RebateRealty Inc, is an Ontario licensed Real Estate Brokerage TREB® & CREA® The listing data is provided under copyright by the Toronto and Brampton Real Estate Board - TREB® and BREB®. The listing data is deemed reliable but is not guaranteed accurate by the Toronto Real Estate Board nor RebateRealty Inc., Brokerage. © 2017