Back in September we talked about the Canadian Press report that showed some of the dramatic changes the Baby Boomers will be making on the housing market in the years to come. Now, the Canada Mortgage and Housing Corporation has come out with a report of their own, looking at the same stats for Baby Boomers and how they’re going to change the world. Or, at least the Canadian housing market.
CMHC report showed that by the year 2036, almost one-quarter of the Canadian population will be Baby Boomers – and the housing market will dramatically affect that. As the Baby Boomers age and move on in life, the demand for condominiums will continue to rise because Boomers will be looking to downsize and will also be focusing on properties that don’t need the usual lawn maintenance and other regular care that large single-family homes require. Condos only take up 11% of the Canadian housing market now, but as the report suggests, this is only going to increase in the coming years.
But, not all Boomers will be moving out of their homes and downsizing – and that’s probably especially true for the 42% of them that, as it stands, have paid off their mortgage in full. Those homeowners however, may be looking more into things like HELOCs and home equity loans in Canada, as they continue to look to make improvements on their home. Those improvements may not be the usual kitchen or bathroom remodels that are usually seen, but rather improvements that will make it easier to live in their home. These loans may be used to install things like chair lifts and additions that accommodate a bedroom on a lower floor, to negate the need to climb stairs to a bedroom on an upper floor.
The Boomers are definitely going to have a huge impact on Canada’s housing market, and mortgage market, in the next 20 to 25 years – and more so than they already have. While the effects of the Boomers has already been felt with 14% of the Canadian population currently falling into the senior category, that number is expected to rise by 10% in the next quarter-century. And that means big changes on the homefront – whether that home is a condo, or a detached home that now has more rooms or different accommodations to make life more comfortable for those living in it. ”
