Older Canadians increasingly deciding to age in their homes

A new report from the Canada Mortgage and Housing Corporation sheds light on the behaviours of elderly Calgarians when it comes to buying and selling homes.

CMHC says, as the number of senior households in Canada rises in the coming years, more seniors are expected to stay in their existing homes.

The report looked at elderly Canadian households in the country's six largest cities: Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montreal.

The data shows the proportion of those households who sell their property is likely only to increase in the oldest senior age groups.

Which means that it is projected to take "another few years to see a significant proportion of senior households list their properties for sale," according to the report.

The CMHC says there are many possible reasons why older Canadians are staying in their homes longer.

"If you compare the situation of senior households today compared, let's say to 20, 30 years ago, probably their wealth is a bit higher than before and maybe also their health," said CMHC economist Francis Cortellino in an interview with CBC News. 

"So that could explain why they're staying longer."

Reasons for not selling

Calgary Realtor Michele Swiggum adds to the possible reasons. She is an accredited seniors real estate specialist.

"A lot of people, maybe 10 to 15 years ago, were hoping to use part of their real estate portfolio as [a] retirement fund. I'm not seeing as much of that anymore. And part of the reason is that the seniors housing in general, the cost has risen so much that they're often not freeing up that much of their equity," said Swiggum. 

"That … has led to people saying, 'Well, if I'm not going to be freeing up that much of my equity, I might as well stay where I am.'"

The report also reveals that although condos are becoming more popular for older Canadians, actual movement toward them across the country is limited.

As for rental housing, the number of elderly Canadians choosing to rent rises with age, but that increase is also limited. The transition to rentals occurs primarily in the oldest age groups of seniors.

When it comes to condos specifically, Swiggum says the cost of that lifestyle turns some people off.

"Probably the bigger concerns with a lot of people … When you look at the cost of condo fees now, you're buying a lifestyle. And if you don't want the lifestyle, there's very little point in you paying for it."

Supply needed 'rapidly'

The CMHC reports says that with larger proportions of senior households deciding to age in their home rather than putting it on the market, solutions to Canada's housing supply shortage will have to come from somewhere else. 

Francis Cortellino says his organization is trying to find those solutions "rapidly," and lists creating separate secondary suites and laneway homes as two possible solutions.