Walk through any Canadian suburb built in the 1970s or 80s, and you'll notice something striking. Many of the original homeowners are still there. The kids who once played on swing sets in those backyards have grown up, moved out, and started families of their own. Yet their parents remain, now in their 70s and 80s, living in homes with empty bedrooms and unused basement rec rooms. This isn't just a neighborhood observation. It's a nationwide phenomenon that's quietly reshaping Canada's entire housing market.

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A Generational Housing Shift

Canada stands on the edge of an unprecedented demographic shift. The Fall 2023 Housing Market Insight indicates that the propensity of seniors to sell their properties peaks in more advanced age groups, but that peak keeps getting pushed later in life. Over the next 20 years, the country expects to see a 68% growth in seniors aged 65 and older.

Here's what makes this different from past generations: seniors today are staying put. They're choosing to age in the homes where they raised families, hosted decades of birthday parties, and built their lives. This choice, multiplied across millions of Canadian households, is creating ripple effects that touch every corner of the housing market. The implications go far beyond individual family decisions. When seniors hold onto family-sized homes longer than previous generations did, it creates a supply squeeze that affects everyone from young couples looking for their first home to municipal planners trying to understand neighborhood demographics.

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The Numbers Behind the Trend

The statistics tell a clear story of changing behavior. Although seniors tend to consider downsizing as they get older, a large proportion are instead choosing to age in their home rather than put it on the market, according to Canada Mortgage and Housing Corporation research released in late 2023.

Consider these key numbers:

• Sell rates for seniors aged 75 and older have dropped by 6% since the 1990s
• Only 5% of seniors sell their homes annually, compared to 13% of the general population
• Nearly one in three seniors aged 75 and older live in homes with three or more bedrooms
• A striking 91% of Ontario seniors plan to age in place, according to 2022 Deloitte research

These aren't small shifts. They represent a fundamental change in how Canadians think about housing in their later years. Where previous generations might have downsized to condominiums or retirement communities in their early 70s, today's seniors are staying in their family homes well into their 80s and beyond. The trend becomes even more pronounced when you look at housing utilization. Nearly three out of ten seniors over 75 are living in homes with three or more bedrooms. Many of these are couples or single seniors occupying homes that were designed for growing families.

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Why Seniors Are Choosing to Stay

The decision to age in place doesn't happen in a vacuum. Multiple factors are converging to make staying put the preferred option for most Canadian seniors.

Lifestyle considerations top the list. Today's seniors value comfort and familiarity. They know their neighborhoods. They've built relationships with neighbors, established routines with local services, and created social connections that would be difficult to replicate elsewhere. Many seniors also prize their outdoor spaces. After decades of tending gardens, hosting summer barbecues, and watching grandchildren play in their backyards, the idea of moving to a condominium with limited outdoor access holds little appeal. They want space for family gatherings, room for gardening, and the independence that comes with ground-level living.

Financial factors also play a major role. For many seniors, their home represents their largest asset and primary source of retirement security. The mathematics of downsizing often don't add up as expected. After paying realtor fees, legal costs, moving expenses, and land transfer taxes, the financial benefit of selling a family home and buying something smaller can be surprisingly modest. Consider a Toronto senior who owns a $1.2 million home outright. Even if they find a suitable condominium for $800,000, the transaction costs alone could eat up $80,000 or more. The net benefit shrinks further when they factor in monthly maintenance fees, property management costs, and the loss of control over their living environment.

Market conditions create another barrier to downsizing. The average rent for standard spaces was on average $3,075 per month for senior housing, and that's just the beginning of senior housing costs. Many seniors find that the alternatives available to them either don't meet their lifestyle expectations or come with price tags that make staying put the more attractive option. The supply of senior-friendly housing remains limited across most Canadian markets. Purpose-built senior communities often have long waiting lists. Condominiums in desirable neighborhoods frequently cost as much as the family homes seniors are considering leaving. The housing market simply hasn't kept pace with the preferences and needs of today's active seniors.

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Market Impacts

This shift in senior behavior is creating measurable impacts across Canada's housing markets. The most direct effect is on housing supply. When seniors hold onto their homes longer, fewer properties enter the resale market. This reduced turnover contributes to the broader housing supply challenges facing Canadian communities. Canada already faces a substantial housing shortage. Experts estimate the country needs an additional 3.5 million affordable housing units by 2030 to restore housing affordability to historical norms. When senior-owned homes that might traditionally come to market remain occupied, it adds pressure to an already constrained supply situation.

Regional variations make the impact uneven across the country. The effect is sharpest in Ontario and British Columbia, where both senior populations and housing prices are highest. In these provinces, the combination of expensive housing markets and large senior populations creates particularly acute supply constraints. Urban markets feel the pressure more acutely than rural areas. In cities like Toronto, Vancouver, and Montreal, senior-owned detached homes represent exactly the type of family-friendly housing that younger buyers seek. When these properties don't turn over as frequently as in the past, it creates bottlenecks in the market segments where demand is strongest.

The generational ripple effects extend beyond simple supply and demand. Younger buyers find themselves competing for a smaller pool of available family-sized homes. This competition drives up prices and pushes many potential buyers into either smaller properties or locations further from urban centers than they might prefer.

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Effects on Younger Canadians

Perhaps nowhere are the impacts more visible than in how young Canadians experience homeownership today. According to a study conducted by Money.co.uk, the average age of a first-time homebuyer in Canada is around 36. That represents a significant shift from previous generations, when first-time buyers typically entered the market in their twenties or early thirties. While the under-35 group still makes up the largest share of first-time buyers today, the over-35 demographic keeps creeping higher, rising at a faster rate across the country, according to recent analysis from The Globe and Mail. This delay in homeownership creates a cascade of effects. Young Canadians spend more years as renters, often paying substantial portions of their income for housing. Industry projections suggest rental costs could rise by 40% over the coming years, potentially reaching over $1,900 monthly on average by 2035 without additional housing supply. For many young Canadians, up to 50% of their net income goes to rent. This rental burden makes it extremely difficult to save for down payments while managing day-to-day expenses. The result is a cycle where high rental costs prevent the savings accumulation needed to transition to homeownership, while limited housing supply keeps purchase prices elevated.

Intergenerational dynamics within families are also shifting. Adult children often find themselves living with parents longer or receiving family financial assistance to enter the housing market. Some families are choosing multi-generational living arrangements that might not have been necessary in previous decades. The delay in homeownership also affects family formation decisions. Young Canadians increasingly postpone marriage, delay having children, or choose to rent family-suitable housing for longer periods than previous generations. These personal decisions, multiplied across thousands of families, create broader social and economic implications. Many adult children also find themselves balancing their own housing challenges with responsibilities as caregivers for aging parents who choose to remain in their family homes. This can create both opportunities and pressures within families trying to navigate multiple generations' housing needs simultaneously.

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Broader Economic and Community Implications

The trend toward aging in place creates effects that extend well beyond individual families and housing transactions. At the community level, it's changing neighborhood demographics in ways that affect everything from school enrollment to public transportation planning.

Housing stock utilization raises questions about efficiency and resource allocation. When large family homes are occupied by one or two seniors, it represents an underutilization of housing resources from a purely economic perspective. A four-bedroom suburban home with a large yard requires the same municipal services whether it houses a family of five or a couple in their seventies. This isn't to suggest that seniors don't have the right to remain in their homes. Rather, it highlights how housing policies and market conditions haven't evolved to provide attractive alternatives that might better match seniors' actual space needs while freeing up family-sized homes for growing families.

Aging neighborhood demographics affect community planning and service delivery. Elementary schools in neighborhoods where seniors are aging in place may see declining enrollment, while demand for healthcare services and accessible transportation options increases. Municipal planners find themselves trying to balance infrastructure investments for very different demographic needs within the same neighborhoods. The economic implications extend to municipal budgets and tax bases. Senior homeowners often benefit from various property tax exemptions and credits. When they remain in high-value family homes rather than downsizing, it affects municipal revenue calculations and service planning in ways that weren't anticipated when many communities developed their long-term plans.

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Pathways Forward

Addressing the housing market impacts of senior aging-in-place preferences requires solutions that work for both seniors and younger generations seeking homeownership opportunities.

Senior-friendly housing development represents the most direct approach. This means creating housing options that appeal to seniors without requiring them to give up the features they value most. Successful senior housing developments often include single-level living, private outdoor spaces, walkable community amenities, and designs that accommodate aging in place over time. Location matters enormously. Seniors often resist moving far from established communities and support networks. Senior housing developments need to be situated in areas where seniors already live and want to remain, not in distant suburban locations that separate them from familiar services and social connections. Affordability remains crucial. Many seniors have significant home equity but limited cash flow. Housing options that allow seniors to access their home equity while maintaining housing security could facilitate more voluntary transitions. This might include life lease arrangements, shared equity programs, or housing cooperatives designed specifically for seniors.

Policy options could provide additional incentives for housing transitions when they make sense. Tax policies currently provide few incentives for seniors to downsize. Property tax systems that reward downsizing, or capital gains treatments that facilitate housing transitions, could help balance individual choice with broader housing supply needs. Zoning reforms could enable more diverse housing options within existing neighborhoods. Allowing coach houses, garden suites, or small-scale multi-unit developments in areas currently zoned only for single-family homes could create downsizing opportunities that don't require seniors to leave their neighborhoods. Support for aging in place shouldn't be overlooked either. For seniors who genuinely prefer to remain in their family homes, policies that enable safe aging in place can be both socially beneficial and economically efficient. This might include home modification grants, expanded home care services, or neighborhood support programs.

Market and industry adaptations are already beginning to emerge. Real estate professionals are developing specialized expertise in senior housing transitions, recognizing that these clients have different needs and timelines than typical buyers and sellers. Financial products tailored to senior housing transitions, such as bridge financing or equity release programs, could facilitate smoother transitions for those who choose to move. Technology solutions are creating new possibilities for aging in place. Smart home systems that monitor health and safety, telehealth services that reduce the need for transportation, and on-demand services that bring groceries and other necessities to seniors' homes all make aging in place more feasible than in the past. Community-based solutions might prove most effective. Neighborhoods that develop strong support systems for aging residents, combined with attractive housing alternatives for those who choose to transition, could create models that balance individual preferences with broader housing needs.

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Navigating a New Housing Reality

Canadian seniors are making housing choices that reflect comfort, financial security, and lifestyle priorities. Their decision to remain in family homes longer than previous generations isn’t a problem, it’s a rational response to today’s market conditions. But collectively, these choices are reshaping housing supply, affordability, and the timelines for younger Canadians looking to buy. The solution isn’t to pressure seniors out of their homes. It’s to create better options, for downsizers who want them, for families who need space, and for younger buyers entering the market. That requires smart policy, creative housing design, and informed guidance from real estate professionals who understand these intergenerational dynamics.

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At Coldwell Banker Horizon Realty, we’re committed to helping both seniors and younger buyers navigate this evolving housing landscape. Whether you’re considering aging in place, exploring downsizing opportunities, or taking your first steps toward homeownership, our team is here to provide trusted advice and local expertise.

Because at the end of the day, housing markets work best when they provide good options at every stage of life. And in a market shaped by demographic shifts, having the right partner by your side makes all the difference.

→ Connect with a CBHR agent today to find the solution that works for your stage of life.