Realtor Barry Lebow focuses on assisting seniors in downsizing from their long-time family homes to more suitable living arrangements for their aging needs. Contrary to the common belief that seniors are eager to sell their large homes to fund retirement, many are actually reluctant to make such a transition. Lebow’s experience in the Greater Toronto Area reveals that most seniors do not want to move, primarily due to emotional attachments and dissatisfaction with available downsizing options. His insights indicate that the perception of seniors being keen to shift residence for financial gain is misleading; rather, seniors tend to remain in their homes longer, creating a bottleneck in the housing market for first-time buyers.
Data from the 2016 census highlights seniors as the demographic least likely to relocate. Mike Moffatt, of the Missing Middle Initiative, affirms that seniors typically stay put unless prompted by financial or mobility challenges. While some older Canadians might wish to cash out and downsize, they represent a small minority. Most seniors remain in spacious homes they no longer need, largely due to reluctance to face the emotional and financial stress associated with moving, such as purging belongings and the costs involved. Lebow acknowledges that these transitions can be traumatic, contrasting the ideal of easy downsizing with the reality of complicated logistics.
Lebow often performs various tasks beyond typical real estate duties, such as finding new homes for beloved pets or mediating family conflicts that arise during the downsizing process. He often finds himself working with clients experiencing cognitive decline, who may view him as a threat to their comfortable existence. Moreover, a recent report from the Canada Mortgage and Housing Corporation (CMHC) found a slow increase in the trend of downsizing among Canadian seniors, although this remains relevant for only a minority. The sell rate among Canadians over 75 has decreased over the last three decades, indicating that many seniors are able to maintain their homes for longer periods.
Key motivators and deterrents for seniors considering relocation include financial costs and lifestyle preferences. Many seniors express a desire for outdoor space for gardening and room to host family gatherings, making small urban condos less appealing. Urban planning expert Mike Moffatt points out that many seniors wish to remain in their neighborhoods, yet adequate smaller housing options are limited. Initiatives such as the proposed sixplex-unit zoning in Toronto aim to address this need by creating more varied housing types that suit downsizers. However, the recent zoning approval applied only to select areas, leaving other neighborhoods to opt-in, which might limit broader market impacts.
The financial burden associated with moving can also discourage seniors from relocating. Expenses associated with hiring movers, staging homes, and paying real estate fees represent significant barriers. In light of this, policy measures such as tax relief for seniors could be beneficial in easing their transitions and facilitating the movement of larger homes into the market. Current proposals, such as waiving the federal GST on new homes for first-time buyers, do not extend this benefit to downsizing seniors, which could potentially disincentivize them to make a move.
Advocates like Moffatt suggest that expanding financial incentives to seniors could result in a more fluid housing market. Easing the financial barriers for seniors contemplating downsizing could catalyze a chain reaction—allowing first-time buyers to access larger family homes while freeing up smaller units for new entrants to the housing market. The government’s lack of response on this front, while focusing on first-time buyers, highlights the complexity and irony of the situation; facilitating seniors’ moves may ultimately serve to benefit the entire housing ecosystem and help mitigate the current issues plaguing first-time homebuyers in Canada.
