23 Mar Ride the wave of boomer trends
1.4 million boomers are expected to jump back into the market by 2023
Boomers, also referred to as baby boomers, may have recently handed the title of “Canada’s largest age demographic” to millennials but that doesn’t mean this consumer powerhouse is stepping aside in the real estate market. In fact, Royal LePage’s research shows that while only 17 per cent expect to make a housing transaction in the next five years, the sheer volume of boomers means
that 1.4 million transactions are expected before the summer of 2023. The opportunity to grow your business is significant. According to the Royal LePage Boomer Trends Survey released in August 2018, more than 75 per cent of boomers across Canada own their own home. However, unlike millennials who may have recently purchased a property, boomers have benefited from significant increases in home prices over the years. Seeing this wave of demand beginning to surge, Royal LePage conducted research to unveil key insights for our network.
What did we learn?
Markets varied as to where we will see significant upswings in demand while trends are largely driven by affordability. Fifty-six per cent of boomers consider their local housing market unaffordable. This number jumps to 78 per cent for respondents in British Columbia and 63 per cent for Ontario. When asked about their willingness to relocate, more than 34 per cent of respondents nationally said they are open to moving to another city or suburb where property prices are more affordable. Of respondents willing to move for improved affordability, 20 per cent stated they are open to living anywhere. This group has already begun to drive demand in smaller cities and recreational regions from coast to coast.
Of boomer respondents planning to purchase a home within the next five years, 32 per cent are most likely to purchase a condominium. This represents a 52 per cent increase in the number of boomers who are currently living in condos and marks a significant shift in this housing type’s desirability within the boomer demographic. Largely thanks to a significant increase in the variety of condo listings and their well-established reputation as turn-key and low maintenance, condos are gaining in popularity.
What took boomers so long to get back into the market?
For many, it’s because their kids are finally leaving home. At least outside of British Columbia, that is. While nine per cent of boomer parents do not expect their kids to move out until after the age of 35, this number is almost three times higher in British Columbia. Demographers expected boomers to start right-sizing their properties years ago, but our findings show it’s only now becoming possible. Whether you seek to grow your sales pipeline through representing boomer sellers in Toronto or Vancouver, or you are attracting boomer buyers relocating to Charlottetown or Muskoka, REALTORS® should ask themselves if their marketing is targeting this crucial demographic.
Royal LePage Leading Edge/2019