With a growing proportion of the population comprising seniors over the age of 65, housing needs and preferences are evolving rapidly in Québec. There is no doubt that the aging population is radically transforming the real estate market!
These changes encompass price, demand and the rise in popularity of certain types of dwellings. Whether you’re an investor, property owner or buyer, understanding this impact is essential to navigating today’s market.
Growing Demand for Senior-Friendly and Multigenerational Housing
As we age, comfort and accessibility become priorities for many. Single-storey dwellings (thus with no stairs), apartments in condo buildings with elevators, and residences without accessibility-limiting architectural elements are more and more sought after. Adapted housing (wide doors, bathrooms designed with safety and accessibility in mind, etc.) is gaining widespread appeal.
Furthermore, the multigenerational home, in which aging parents live with their children and, very often, grandchildren, is an increasingly popular model, and has been for several years now.
Long-Term Effects on Home values
This demand for senior-friendly and multigenerational properties will no doubt affect their market value, which will probably rise. Conversely, houses with poor accessibility may lose value if they fail to meet this clientele’s needs. Investing to make homes safer and better adapted to the elderly may therefore become a major advantage for homeowners looking to sell in the coming years.
The Emergence of Senior Living Communities
Over the past several years, we have seen an increasing number of residential developments geared towards autonomous seniors. While most of them focus on rentals, there are nevertheless a few projects across Québec where residents can purchase their unit. These seniors’ villages usually include additional services like health care centres, recreational facilities and social events. This housing model attracts buyers looking for a safe, community-oriented lifestyle, thereby boosting prices and spurring similar projects in new regions.
Effects on Rental Demand
Seniors who have sold their homes often decide to rent for the added flexibility and reduced maintenance. This, of course, heightens demand for well situated, secure, senior-adapted apartments (like in the residential developments mentioned above).
An Exodus to Less Densely Populated Areas
A growing number of seniors are equally moving out of major urban centres into more peaceful and affordable areas, where they can enjoy a better quality of life all while reducing their housing costs. This trend is encouraging development in rural and semi-urban regions, attracting new services as well as raising demand for homes in these municipalities.
An Influx of Single-Family Homes onto the Market to Come?
As segments of the population age, they usually transfer their large single-family homes to the next generation. With more single-family homes on the market, this upsurge in supply may eventually push prices down (this remains to be seen, however). In the future, there may also be a lack of interest in these older homes as renovations will be necessary to appeal to younger generations.
More than a simple question of demographic statistics, the aging population is having a measurable impact on Québec’s real estate market dynamics!