06 Jul 2021 Royal LePage boomer trends survey unveils real estate intentions of powerful demographic
The Royal LePage comprehensive survey of 2,000 boomers from coast-to-coast unveiled key trends within this powerful demographic. With over 9.1 million boomers in Canada, their real estate and purchasing decisions are far reaching.
The survey, conducted by Leger, found that 35 per cent of boomers were considering buying a home within the next five years and 45 per cent believe that now is a good time to sell. More than half (57%) of boomers said they would purchase a detached house if they were to buy, while 19 per cent said they would prefer an apartment/condominium. Fifty-two per cent of boomer homeowners said they would prefer to renovate their existing home rather than purchase another, and an additional 24 per cent said they would consider it.
“The boomer generation appears to have no intention of slowing down,” said Phil Soper, President and CEO, Royal LePage. “Fully vaccinated, and turning a cold shoulder to retirement, the typical member of this huge demographic is enjoying an empty nest and believes real estate is a good investment. Millions of boomers are expected to wade into the market over the next five years.”
When looking closer at the intentions of those considering to sell in the next five years, 56 per cent say they would consider moving to a rural or recreational region. Twenty-eight per cent say they would consider purchasing a larger home than the one they currently reside in, 56 per cent would consider a similarly-sized property, and 63 per cent would consider downsizing. Respondents were able to choose more than one option.
For those looking to downsize, less home maintenance (71%) was by far the most popular reason. Other popular reasons to downsize include the ability to free up money for things like retirement (39%), travel (29%), and to help their children purchase a home (9%).
What about affordability? While boomers remain the wealthiest generation, 65 per cent did not consider their region affordable and 42 per cent said that, near or during retirement, they would consider relocating to another city.
Sixty-four per cent of boomers, who are homeowners, are mortgage-free. However, many still have dependents living at home. When it comes to adult children, 7 per cent had children aged 18-24 and 12 per cent had children aged 25 and over. Twenty-one per cent of those who still had kids at home said they did not foresee their children moving out.
It can be stressful watching your adult children try to get on to the property ladder while prices continue to grow. Twenty-five per cent said that they have or would consider gifting or loaning money to a child to help with the purchase of a home. The number was highest in Vancouver, where 34 per cent said they would do so.