Canadian seniors are largely staying in their long‑time family homes rather than downsizing into smaller units, which experts say is reducing available housing supply for first‑time buyers. Despite a common assumption that retirees might want to cash in their home equity, experts call that notion a myth. Many seniors prioritize aging in place, and are finding downsizing options unattractive or lacking altogether CTVNews+14Ground News+14X (formerly Twitter)+14.
Data from CMHC (Canada Mortgage and Housing Corporation) shows that the “sell rate” for Canadians over 75 has steadily declined from 1991 through 2021, highlighting that fewer seniors are transitioning out of their homes compared to previous decades Reddit. Realtors like Barry Lebow, who specialize in assisting seniors with downsizing, note that seniors often opt to remain put unless the downsized option meets their lifestyle and financial needs Ground News+2Yahoo Finance+2CTVNews+2.
Key reasons cited include:
- Lack of suitable housing options: Many seniors don’t see appealing alternatives in their neighbourhoods. There is a clear absence of so‑called “missing middle” housing—like small single-family homes, row‑houses, or low‑rise apartments—that offer comfort without high maintenance Yahoo Finance+7Ground News+7CTVNews+7Reddit.
- Cost concerns: Selling can trigger capital gains taxes, moving costs, condo fees or mortgage debt on downsized properties, which makes the financial payoff uncertain. Especially for fixed‑income retirees, the expenses of moving or unexpected maintenance in a new place are deterrents RedditGround News.
- Emotional and social attachment: Seniors often cherish their long‑time homes as places to gather family and grandchildren. Leaving can feel like losing a central hub of social and emotional life Reddit.
On Reddit, users strongly echoed these reasons with firsthand perspectives:
“There aren’t many suitable places for seniors to downsize to […] they didn’t want to downsize … then their health started to fail … they had no choice” Mastodon hosted on mastodon.social+14Reddit+14CTVNews+14.
“Most seniors I know are adverse to buying a condo due the fees … and the chance for unexpected special assessments fees” Reddit.
Because seniors rarely vacate homes, younger Canadians face intensified competition and reduced inventory for starter homes—and that’s pushing prices up in many markets. Less movement at the top of the home-ownership chain means less turnover overall, squeezing first‑time buyers who rely on modest single-family homes entering the market.
Policy experts argue that one solution is the expansion of missing‑middle housing: more mid‑sized, lower‑maintenance units within established communities to entice seniors to move while offering affordable options to incoming buyers en.wikipedia.orgGround News. Additionally, adjustments in zoning and provincial housing strategies could encourage building these homes to help alleviate pressure on Canada’s housing market.
In summary, red flags around downsizing—ranging from unsuitable options, cost burdens, to emotional attachment—are causing Canadian seniors to stay put, which tightens the housing supply for first-time buyers. Offering better housing alternatives and supportive policies may help ease that tension and create more fluid market movement.
