Baby boomers may be driving the housing market in the next few years.
A Royal LePage Boomer Trends survey found that 49 per cent of boomers (those born between 1946-1964) in Ontario are planning to move to a smaller home as they near or enter their golden years. It was the highest rate in all the regions surveyed.
Nationally, 17 per cent plan on purchasing a new home in the next five years, while 56 per cent of boomers consider their local housing market unaffordable.
"Don’t count them out yet - baby boomers will impact Canada’s housing market in a big way in the coming years, as another 1.4 million of this large demographic are expected to sell and buy real estate between now and 2023," said Phil Soper, president and CEO, Royal LePage.
Boomers are typically waiting for their children to move out too before downsizing.
44 per cent of respondents who still have kids at home expect them to move out between the ages of 21 and 25, and 21 per cent expect them to leave between the ages 26 and 30. 27 per cent anticipate that will happen after their children turn 30.
According to the Leger survey, 77 per cent of boomers own a home.
Of those who plan to buy in the next five years, 45 per cent are most likely to purchase a detached home, 32 per cent are most likely to purchase a condominium, while 10 per cent noted strongest interest in a semi-detached/town home and 5 per cent said a recreational property.