Baby boomers don’t plan to downsize

Demand for suburban detached homes remains strong among baby boomers.

Almost half (43.5%) want to purchase another primary residence that’s a similar size or larger than their current property, finds Royal LePage. And 66.8% say they’ll do so in the next five years.

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“Baby boomers are the wealthiest generation in Canadian history,” says Phil Soper, CEO of Royal LePage Real Estate. “They live in large homes with ample space for their many possessions. They love their garages and their yards. This study clearly indicates that contrary to popular belief, most boomers do not intend to downsize anytime soon.”

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Male boomers (23%) are more keen on upsizing than women (12.1%).

One of the reasons boomers want to stay in their large homes could be because they’re supporting adult children. A quarter of Generation Y lives rent free because of arrangements with family or friends.

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“The adult children of boomers aren’t going anywhere fast,” says Soper. “Good jobs have proven more difficult for them to find, they’re extending their studies and they’re living at home. It is no wonder the concept of swapping a family-sized home for a small retreat has lost its luster.”

Read: Advising Gen Y

Additional findings include:

• 78% of boomers currently own their own homes;
• Boomers looking to purchase a condominium prefer fewer amenities and low maintenance fees (54.5%) over properties that have many amenities (39.1%);
• Among boomers who plan to downsize, the most popular reasons are to reduce maintenance (73.7%), free up money for retirement (48.1%) and for travel (30.9%).
• Gen Y are most interested in single-family multi-storey homes (50.6%) and bungalows (19.0%);
• 15.7% of Gen Y plan to buy a condominium or an apartment; 22.9% of boomers want condo or apartments;
• 55.7% of Gen Y plans to purchase in the suburbs and 27.7% in the city.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.