As Canada’s largest population of citizen’s age, baby boomers are now downsizing to smaller homes. This fact alone is pushing a nine-million strong group of people into looking for smaller houses to spend their twilight years. This is having a huge impact on the current housing market, according to many Toronto Real Estate companies.
Researchers have found that the majority of baby boomers are tired of trudging up and down stair cases, mowing their lawns, and are looking for homes that are one level along quiet streets, with additional features that make living at home easier and more accommodating.
According to Keith Tongue, “Baby Boomers have built up a lot of equity in their homes”. Like all things net worth increases with age and today’s baby boomers are taking full advantage of this by selling their current homes at higher prices and relocating to smaller and less expensive homes, which is leaving a large percentage of the more expensive homes on the market with less people to purchase them.
Many of today’s population that are seventy or older have already downsized into smaller homes, bungalows, or condominiums, which left their homes to be purchased at much higher prices. Today’s elderly families have a net worth of approximately $445,000, which is an increase over the $343,000 reported in 1999.
By the year 2030, the real estate board is expecting that more than eighty percent of new housing demands will be from citizens age 65 or over. Baby boomers currently make up about one-third of the entire population; therefore, they are instrumental in the current housing market.
The real estate board is expecting that over the next twenty years, the majority of the baby boomers will be ready to leave their single detached homes in search for places that require less maintenance and offer them more amenities.
Today’s baby boomers are looking for open spaces that can host family and friends, instead of dining and living rooms, electrical outlets that are higher off the ground, additional storage spaces in master bedrooms and closets, as well as large back yard living spaces with decks and fireplaces, wet bars, and outdoor kitchens.
Some baby boomers are looking to purchase income properties in the form of duplexes where they can live on one side and rent out the other side and add to their retirement income.