Money is Tight, But Canadian Seniors Refuse to Downsize. Why?
A June 2024 Home Seller Intentions Survey found that 37% of respondents planned to sell their homes within the next five years, citing downsizing as their primary motivation. This trend was particularly evident among older Canadians, with 69% of downsizers aged 55 and above. Notably, 11% of potential sellers mentioned financial difficulties or debt repayments as their reason for considering a sale.
However, exactly two years later, the situation has changed dramatically.
A 2026 survey conducted by a leading Canadian brokerage among the same cohort reveals that, while millions of Canadians are nearing retirement age, they are no longer as eager to downsize. For real estate professionals, this shift suggests that hopes for increased inventory from these sellers are now on indefinite hold.
Survey Results.
Approximately 7.74 million Canadians are currently over the age of 65, representing 18.9% of the population. This share is projected to rise to nearly 25% by 2030.
Despite this demographic shift, the intent to downsize among this group has diminished, with only 10% of respondents indicating they plan to move to a smaller home in the next decade. In contrast, 46% expect to remain in their current homes.
“While downsizing won’t happen all at once, the direction is clear,” predict real estate analysts. “Canada’s aging population will undoubtedly influence housing demand and availability over time, but progress will depend on making the downsizing process easier, safer, and more rewarding for this particular group of homeowners, who can be quite set in their ways.”
What Specifically Is Stopping Seniors from Moving?
The short answer is the lack of housing options that meet their needs.
This shortage affects their ability to transition from larger homes. Nearly half of Canadians (49%) report a low availability of downsizing options in their communities, while an additional 8% say there are no options at all. Among those aged 65 and older, that figure rises to 65%, highlighting a significant mismatch between housing needs and available supply.
“We’re seeing many homeowners who would consider downsizing, but they’re struggling to find suitable options in their communities,” notes a senior real estate executive. “Without sufficient inventory to support these transitions, many are choosing to stay in their homes longer,” he said.
When older homeowners delay downsizing, it slows turnover across the entire housing market, reducing the number of homes available to move-up buyers and, in turn, limiting entry points for first-time purchasers.
Meanwhile, demand from younger Canadians continues to increase. Nearly a quarter (23%) of those aged 18 to 34 say they plan to buy their first home within the next decade.
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