Downsizing Toronto Boomers Are On The Rise
As Realtors® who cater to the 50+ demographic, we specialize in aligning real estate choices with the preferred lifestyle that our downsizing clients seek. Contrary to the typical transactional nature of the real estate experience, our clients know that this time of life is a transition.
Our expertise in this area gives us the insight into the various issues and challenges that a downsizer needs to overcome to successfully transition. In fact, we weren’t surprised with the findings of a recent 2021 boomer real estate study that captures the real estate climate across Canada. With a particular eye on Toronto and the GTA, the study reveals that 74% of boomers own their primary residence and 64% live mortgage-free. Boomers are huge proponents of real estate and 60% of them have their net worth invested in it. Some are empty nesters, and others will soon be. The study found that more than half of this demographic (51%) are considering a home transition within the next five years.
As downsizing experts, we know this change doesn’t happen overnight, in fact since March 2020, only 5% of Toronto boomers have sold their home. Why are the other 95% hesitant to take part in the advantageous sellers’ market that the pandemic prompted?
- While every situation is unique, we know 29% of Toronto boomers are considering retiring a bit later in order to help their children with a down payment for their first home. This means many of them are holding onto their homes a bit longer.
- The study also revealed that people who are nearing retirement or are already retired, 50% of them are considering moving to a different city that is more affordable. Of course, this type of move, requires significant planning.
- In our experience, oftentimes, there are also physical (major decluttering) and emotional (hesitancy to leave the family home) reasons that delay the downsizing process as well.
These are exactly the type of obstacles we guide our clients through every day; obstacles that stand in the way of boomers taking advantage of the equity they have in their current home. Unwilling to entertain large renovation projects while living in the same space, we are also seeing first-hand that boomers are looking for newer homes that require way less maintenance with an overall lower monthly spend on utilities and other household expenses.
When the time is right to take the downsizing plunge, we recommend you consider partnering with transition experts who will listen and understand your needs and customize a comprehensive roadmap for your downsizing journey.
