According to a survey by Statistics Canada, in 2018, there were 106 seniors aged 65 and older for every 100 children under the age of 15. Is this increase in the senior citizen population has any impact on the real estate market? Is there a demand for senior-centric housing?
When we think of buying a house, we envision the years to come – a place to grow old. It also gives financial stability to not depend on anyone during the old age. But in recent years, senior citizens, especially above 75 years of age, are opting for a retirement house or an assisted living space. Also, as most of the baby boomers are well settled compared to their previous generations, they are in a lookout to shift to a senior-centric place with a better climate, premium health care and a place that can facilitate their hobbies, some passion projects, etc.
However, unlike before, millennials are staying with their young senior parents for a longer time before moving out that the chances of young seniors moving to a senior centric house are almost nil. Down a decade, they might opt for an assisted living space leaving the current houses for their children.
If we take some of the previous statistics, 80% of people aged between 55-74 had their own homes. 3 out of 4 senior citizens of age 75 and above lived in their own house. Also, 80 % of those over the age of 55 lived in the same house for more than five years. At least 62% had lived in the same dwelling for over 10 years.
Considering all this, at present, there might not be any effect on the real estate market because of the increase in the senior citizen population. But, they are likely to cause shifts in housing supply and demand in the early 2030s when they may face challenges with aging in place.
As they vacate their houses and move to assisted living spaces or senior-centric dwellings, the housing prices are likely to get optimized and can be beneficial for older millennials looking to settle with a family.