In a quiet neighborhood in Georgetown, Ont., James Newcombe, 83, and his wife cherished the familiarity of their spacious home. They had lived there since 1982, raising their children and relishing the comfort of their four-bedroom abode. But as time passed and health declined, the stairs leading to their bedroom became a challenge for Mrs. Newcombe. Last year, they faced a difficult decision: they had to leave.
Moving to a retirement home was inevitable for the Newcombes, yet the transition meant bidding farewell to the community they had been a part of for decades. Unable to secure a spot in their preferred facility locally, they relocated to Dundas, Ont., leaving behind cherished friendships and memories.
Their story reflects a broader trend observed across Canada – seniors are increasingly opting to age in place, delaying the sale of their homes until much later in life. According to a report by the Canadian Mortgage and Housing Corporation (CMHC), the sell rate for homeowners aged 75 and over has been declining since the early 1990s, putting pressure on the housing market.
CMHC economist Francis Cortellino attributes this trend to various factors, including improved health, financial stability, and a lack of suitable housing options. Many seniors, like the Newcombes, prefer to stay in their homes to remain close to friends and familiar surroundings. However, the housing market is not adequately equipped to accommodate their needs, leading to a mismatch between supply and demand.
Efforts to address this issue include exploring alternative housing options such as secondary suites or laneway homes. These solutions aim to increase housing diversity within communities, providing seniors with viable alternatives to their current residences. Nevertheless, cultural attitudes towards homeownership and the substantial costs associated with moving pose significant barriers for many seniors considering downsizing.
Julia Chung, a certified financial planner, highlights the often underestimated expenses involved in moving, which can outweigh any potential financial gains from downsizing. For many seniors, the emotional attachment to their homes, coupled with financial considerations, outweighs the practicality of moving to a smaller residence.
Research indicates that this trend is likely to continue in the coming years, with baby boomers expected to delay downsizing until mid-2040. As a result, there's a growing need for policymakers, urban planners, and communities to address the housing needs of an aging population.
Ultimately, the decision to age in place is deeply personal, influenced by a combination of financial, emotional, and practical considerations. For seniors like the Newcombes, the familiarity of home outweighs the challenges of aging, highlighting the importance of creating supportive environments that enable aging Canadians to live comfortably and independently for as long as possible.
Whether you are trying to buy or downsize, contact us today at 780 701 3888 or marc@albertamortgagepros.ca to find out what your options are.
