Baby boomers hold a lot of wealth, especially in the real estate market, and they intend on unleashing it over the next half-decade, says a survey from Royal LePage.<\/p>\n
The survey, conducted in tandem with Statistics Canada, of Canadians born between 1946 and 1965 determined that 35%, or 3.2 million people, are considering home purchases in the next five years, with 45% stating that now is a good time to buy. Forty percent of the respondents have at least 50% of their net wealth tied up in real estate.<\/p>\n
Fifty-two percent of boomer homeowners would, however, prefer renovating their present homes than move. Seventeen percent of survey respondents own more than one home, and 64% of surveyed boomers aren\u2019t carrying mortgages.<\/p>\n
A quarter of respondents stated they would have to financially assist their children to purchase a home.<\/p>\n
“The boomer generation appears to have no intention of slowing down,” said Phil Soper, president and CEO of Royal LePage. \u201cFully vaccinated, and turning a cold shoulder to retirement, the typical member of this huge demographic is enjoying an empty nest and believes real estate is a good investment. Millions of boomers are expected to wade into the market over the next five years.”<\/p>\n
Fifty-six percent of the 35% of boomers considering buying a new primary residence in the next five years would opt for a rural or recreational region, while 28% would upsize their new property. Of those who would downsize, 71% cited reduced maintenance as the reason, while 39% said they would unlock retirement funds, 29% want to travel, and 9% would spend the money towards buying their children a home.<\/p>\n
Soper noted that most boomers interested in home purchases are looking to enjoy their later years, although some want to live in quieter environments without sacrificing space. As such, he expects home sales in exurban areas to remain elevated in the years ahead.<\/p>\n
Moreover, the survey results heavily suggest real estate equity is the means through which boomers intend on retiring comfortably, even leisurely.<\/p>\n
\u201cThe boomer generation strongly values home ownership, for good reason. Real estate has been very, very good to them,\u201d said Soper. \u201cMost are still working and their home equity has become the bedrock of retirement security. Financially confident, their next move is a matter of lifestyle choice.\u201d<\/p>\n
The survey revealed that 37% of Boomers in Canada\u2019s most populous province want to buy a home in the next five years, however, that number hits a whopping 41% in Toronto. According to the Royal LePage-StatCan survey, 76% of Ontarian boomers own their own home\u201464% and 60% in Ontario and Toronto, respectively, are mortgage-free\u2014with 16% owning multiple properties<\/a>.<\/p>\n \u201cThe pandemic has left a lasting impact on many younger boomers who are trying to get more from their home after a year of COVID-19-related health restrictions. Many are looking for more space to entertain, help out with the grandkids or continue to work remotely. Not all boomers have the luxury to upgrade to a larger space, but the desire is there,\u201d said Toronto-based Cailey Heaps, who leads the Heaps Estrin Team at Royal LePage Real Estate Services.<\/p>\nQuebec<\/b><\/h3>\n