Boomers Land Impact on Housing Industry

There is strength in numbers; that we know. But what is truly remarkable is the force that vast numbers can apply on reshaping a society- and in this case, an industry.

The concept of homeownership and idyllic living in this country has experienced a major paradigm shift, and is really on the cusp of things to come, mostly because the largest demographic group- the Baby Boomers- are swinging their demographic weight around again- this time to land squarely with a material impact on the housing industry.  

As a real estate professional, part of getting into this market, is to understand where this group is coming from, where they are going and the mechanics of the impact they wield on the marketplace, namely condominium living, home renovations and development of Senior Citizen health care institutions.

A New Model for Housing

According to CMHC’s recently released “2011 Canadian Housing Observer”, which examines and characterizes housing trends in the country, the proportion of senior citizens in the total population is expected to grow from 14% currently to a staggering 24% by 2036. This trickles down to a material impact on the market, as CMHC points out: “Demographic pressures account for much of the variation in the rate of housing construction in different parts of Canada…As people age, their needs are likely to change due to disabilities, medical conditions, changes in their household composition, and/or changes in their financial situation. Population aging therefore requires various forms of housing, a range of models of coordinating housing with support services, and community planning that respond to the needs of seniors and enhance their quality of life.”