Canadian seniors opting not to sell their homes is increasingly squeezing the real estate market—especially for younger, first-time buyers. That’s the message from Rishard Rameez, Co-Founder and CEO of Zown, who highlighted the phenomenon during a BNN Bloomberg segment earlier this week CTVNews+1.
A Shift: Seniors Staying Put
According to Rameez, a key factor driving housing affordability issues is the growing tendency of seniors to remain in their homes rather than downsizing or relocating CTVNews. This trend reduces the available housing supply, making the market more competitive at a time when affordability is already strained.
Why Aren’t Seniors Moving?
This isn’t entirely surprising. A Canadian Press article from July 2025 reported that seniors are among the least likely to move, despite having larger homes than they need BNN Bloomberg. The reasons are multifaceted:
- Emotional attachments and lifestyle preferences: Many seniors have lived in their homes for decades; the emotional cost of moving can be substantial. Things like space for gardening or hosting family make downsizing less appealing—even when it would potentially benefit others BNN Bloomberg.
- Lack of suitable alternatives: Affordable, accessible housing options that truly meet seniors’ needs—like street-level designs or proximity to community amenities—are often unavailable in their current neighborhoods BNN Bloomberg.
- Financial and logistical hurdles: The financial cost of selling, moving, and settling into a new place—including taxes, fees, and services like staging or movers—can deter seniors from downsizing BNN Bloomberg.
Market Impacts & Broader Context
This reluctance to move contributes to tighter housing availability, especially in regions with aging populations. The result? Fewer listings, longer waits, and increased pressure on prices—particularly for younger buyers seeking entry-level homes.
Meanwhile, the underlying housing shortage in Canada remains acute. The Parliamentary Budget Officer has estimated a need for about 3.2 million new homes over the next decade to close existing supply gaps CTVNews. Seniors staying put only adds to this urgency.
What It Means for Different Groups
- First-time buyers: Fewer available homes at lower price points can delay or derail entry into the housing market.
- Seniors themselves: Many may be locked into larger homes, limiting their ability to access retirement-friendly housing or reduce costs.
- Market dynamics: A market skewed toward fewer transactions and less turnover could slow down overall housing mobility and reduce price elasticity.
Toward Solutions
Addressing this dual squeeze—limited supply and constrained demand—requires multifaceted strategies:
- Create better downsizing options: Introducing more accessible, affordable housing like multi-unit infill or ground-floor designs in older neighborhoods could give seniors attractive alternatives. These can ease transitions and release larger family homes back into supply BNN Bloomberg.
- Incentivize turnover: Financial incentives or supports (e.g., tax credits, moving assistance) could help ease the emotional and logistical burden of moving.
- Boost housing supply overall: Scaling up construction of housing across all types—from purpose-built rental buildings to townhouses—can help offset the supply bottleneck.
In summary, seniors staying in place is a powerful but often overlooked force shaping Canada’s housing crunch. While their reasons for not moving are understandable—from emotional ties to a lack of suitable alternatives—the market consequences ripple outward. To restore balance, policy and housing design must evolve in ways that respect seniors’ needs while supporting broader market flexibility.
