Senior Housing Market - Driving Successful Investments in 2023
A startling statistic emerged from the 2016 census: the number of Canadians aged 55 and up increased by 87 percent between 1996 and 2006. As the population of Canada matures, demographics will continue to shift. In fact, for the first time in Canadian history, there are now more elders than children under the age of 14.
These figures reveal a lot about the current health of the real estate industry and can aid in forecasting future developments. It's critical to comprehend how Canada's rapidly growing senior housing population will affect the real estate investment market, both now and in the future.
Seniors are leaving their spacious homes in the suburbs and small cities for apartments in dense, walkable areas. This is in line with an increase in demand from Millennials and Generation Z, drawn to smaller living spaces in metropolitan cities, creating a new market for senior housing.
The fact that elderly are increasingly moving to "younger" locations, forcing them to age rapidly, is an important trend that real estate investors should keep an eye on. Changing demographics and preferences are resulting in constrained metropolitan property markets and an overabundance of larger houses in suburbs and smaller metro areas. Real estate investors must learn how to take advantage of these trends.
Understanding the changing demographics of Canada's various areas might help real estate investors make better judgments. Pay close attention to how demographics affect the value and saleability of your home, whether you are remodelling and flipping a house or intending to keep a rental asset for the long haul.
However, before we dive into house senior housing is driving the rental market let's get started the right way with a strategy call. Book yours today at the link below.
Ontario's demographics and real estate - senior housing specialties
The most populated province in Canada is also one of the oldest. While many communities in the Greater Toronto Area (GTA) have low concentrations of adults over 55, North Ontario municipalities such as Kawartha Lakes contain as many as 43 percent elderly citizens.
Both Ottawa and Toronto, Canada's political and economic power centres, have a population of 55 and over that hovers around 30%.
Seniors are rapidly moving into younger cities in Ontario. Since 2006, the over-55 population in Brantford, an exurban city near Hamilton, has increased by 61 percent, according to the 2016 census. Data reveals that when the number of seniors is large cities across Ontario grows, housing values tend to fall.
Similar trends found in Québec
The country's second-largest province in terms of population is also rapidly ageing. Seniors, like those in Ontario, are increasingly moving to locations with huge concentrations of younger people. Home prices tend to fall when the elderly begin to move in.
Côte-Saint-Luc, a Montréal suburb, is an exception. The population of this on-island city on the Saint Lawrence River is roughly 40% senior residents, but it has some of the highest real estate values in Québec.
The demographic patterns in Atlantic Canada are more stable
Newfoundland and Labrador and the Maritime Provinces have some of the most steady demographic patterns in the country. Halifax and St. Johns, two of Atlantic Canada's major population hubs, have low adults over 55, and about 30% of the people in both cities are above the age of 65.
Atlantic Canada also has some of the most affordable real estate in the country. As in other parts of the country, real estate values fall as the population of senior citizens grows. However, because the number of seniors in Atlantic Canada is increasing more slowly than in other parts of the country, the region could be an excellent investment opportunity for wise real estate investors.
Cape Breton, Nova Scotia, has the highest percentage of seniors in Atlantic Canada, with 42 percent over 55.
Discover How To Buy Unlimited Rental Properties With This Step By Step Guide
The youngest people live in the prairie provinces
In contrast to the rest of the country, the Prairie Provinces are not displaying signs of accelerated ageing. The Prairies are, in reality, Canada's newest provinces. In the Prairies, no significant city has a senior population over 35%. In reality, Moose Jaw, Alberta is the "oldest city" in the region, with only 33% of the population over 55.
Edmonton, Regina, and Winnipeg are also three of Canada's youngest provincial capitals, and seniors make up less than 30% of the overall population in all three of these cities.
In addition to being Canada's youngest region, the Prairie Provinces also have the second-cheapest real estate in the country, after Atlantic Canada.
Cities with the highest percentages of young people are likely to witness the fastest growth in elderly populations, as in other sections of the country. Between 2006 and 2016, the elderly citizens in Okotoks, Alberta, increased by a stunning 59 percent.
For skilled real estate investors, the Prairie Provinces might be productive terrain. This booming Canadian region has a young population, plenty of potential for real estate development, and abundant natural resources.
The population of British Columbia is rapidly growing older, and the cost of living is expensive
British Columbia provides a significant challenge for real estate investors, with the highest real estate prices in the country and a rapidly ageing population.
Vancouver, British Columbia's largest city, has a low percentage of senior citizens, with only 28% of residents over 55, similar to other parts of Canada.
For example, West Vancouver, Courtenay, Vernon, and Penticton have senior populations above 40%.
While many of these cities follow the pattern of a growing older population resulting in decreased real estate prices, West Vancouver stands out. Despite its ageing population, West Vancouver has extraordinarily high real estate prices.
Demographic information and Senior Housing
It's a good idea to sit down and look at some demographic data before you make your next real estate investment. As Canada's population continues to age and relocate westward, many market fundamentals are anticipated to change.
In locations where the senior population is rising, it's also worth considering investing in senior housing alternatives. Even while a growing elderly population tends to drive down real estate values, clever investors still have opportunities.
Take the Next Step
If you are ready to take the next step and invest in senior housing, rental properties and more, we want to help you with a free strategy call. All you need to do is click the link below to book your call and we will help you dive into the world of senior housing and beyond.