According to a new report from Sotheby’s International Realty baby boomers continue to influence the Canadian real estate market more than any other sector of society.
At the lower end of the market, baby boomers impact sales figures by offering their children, often already in their 30s or even 40s, help with hefty down payments. In fact, Canadian mortgage insurers Genworth, suggest up to one third of first-home buyers receive financial support from family in order to get on the property ladder. In traditionally affluent neighborhoods, an even higher percentage of young buyers have help from the bank of Mom and Dad.
Making up almost 30% of the Canadian population, baby boomers also dominate the luxury housing market, continuing to trade-up to more expensive homes. Having entered the housing market years ago, baby boomers have benefited from the long-term rise in house prices putting high-end properties within their reach.
An emerging trend highlighted by the survey is “right-sizing”. Often sandwiched between elderly parents and adult children still living at home, some baby boomers are forgoing down-sizing and moving into larger homes, which can accommodate multiple generations.
“The luxury real estate market is not only shaped by economic forces, it’s driven by generational values and demographics,” said Ross McCredie, CEO of Sotheby’s International Realty Canada, in a press release.
“Insights into preferences across generations allow us to understand housing trends and to anticipate their future impact on the market.”
The Sotheby’s International Realty report is based on interviews with its realtors in markets across Canada.