Aging households could increase housing supply: CMHC

The number of Canadian households with seniors living in them is on the rise, and this may have an unexpected impact on the housing market.

According to a new report from the Canada Mortgage and Housing Corporation (CMHC), the rise in senior-occupied households could increase the supply of properties for sale on the market.

This is because senior Canadians may sell their property for a change in living arrangements, such as moving from private to public housing, like care centres.

The number of senior’s in Canada is also higher than ever before, according to Statistics Canada. In 2021, 7 million people were aged 65 and older, representing nearly one in five Canadians. This was up from 16.9 per cent in 2016.

“Seniors are expected to comprise around 23 per cent to 25 per cent of the population by 2036, and around 24 per cent to 28 per cent in 2061.”

The CMHC also reveals that the housing preferences of Canadian households change as they age. It adds most Canadian seniors, especially those in the younger range of seniority, are staying in their existing homes.

Among the three biggest Canadian metropolitan areas, households in Vancouver and Toronto are most likely to transition to condominiums. Whereas seniors in Montreal tend to move into rental housing more often, the CMHC says.

Since the proportion of older Canadian households that sell their property as they age is high only in more senior age groups, it will still take another few years to see a significant proportion of them list their properties.

“To better understand where the real estate market is headed, it is important to look at what these households are doing on the market.”