More than a third of boomers in Ontario are on the hunt for a new real estate purchase and are planning to buy in the next few years.
A recent survey carried out by Royal LePage revealed that 37% of boomers — those born between 1946 and 1965 — are considering purchasing a new property within the next five years. In Toronto, that number rises to 41%.
More than half — 59% — said they would purchase a detached house if they were to buy, and only 19% said they would choose a condominium. Fifty-six percent said they would consider moving to a rural or recreational region. And, perhaps surprisingly, 25% said they would consider purchasing a larger home than the one they currently have.
“The 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,” said Cailey Heaps, of the Heaps Estrin Team, Royal LePage Real Estate Services. “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.”
Of the 37% looking to buy, 66% said they would consider downsizing, with the primary reason given for doing so being less home maintenance, followed by freeing up money for retirement, travel, and being able to help their children purchase a home.
“Boomers who own property in Ontario have seen their equity grow while making memories in their family home. They want the same experience for their children and feel a sense of urgency, as prices are becoming more out of reach, to help get them on the property ladder,” said Heaps. “While competition is high across the province, Toronto remains a particularly difficult market to get into because of the higher price point. For some younger buyers, help from parents will determine whether they can purchase at all.”
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In Ontario, 67% of boomers already own their own home, and of those homeowners, 64% do not currently have a mortgage. Sixteen percent of boomers across the province own more than one property, according to the survey.
Not surprisingly, nearly half of all Ontario boomers — 46% — have at least 50% of their net wealth in real estate. In Toronto, that number rises to 54%, which was the highest percentage seen in any metropolitan area that Royal LePage surveyed.