The boomers will continue to influence the residential real estate market

Les boomers continueront d’influencer le marché immobilier résidentiel

Photo: Michaël Monnier Duty
For the purchase, 54% of boomers would have a budget of less than that amount to $ 450,000, according to a study by Royal LePage.

The influence of boomers on the housing market is not going to close shortly. Especially in the segment of first-time buyers, the millénariaux remain many to contribute to the phenomenon Tanguy.

“Don’t underestimate : this group is non-negligible, will influence the market significantly over the coming years, since 1.4 million of them will sell their real estate property to buy other by 2023,” said Phil Soper, president and chief executive officer of Royal LePage. It shows that 77 % of baby boomers are owners of a residence.

The brokerage firm of real estate publishes on Wednesday a study on the trends of baby boomers on the housing market. It indicates that 17% of the population component of this cohort, born between 1946 and 1964, have the intention of buying a new residence in the next five years. In Quebec, this proportion drops to 11 %, the rate in quebec is the lowest of all the regions overflown by the study. They are also more numerous, accounting for 62 % against 59 % in the rest of Canada, to opt for the renovation. And “when the baby-boomers in Quebec to sell their property, it is for one of two reasons : unlock the value net is to enjoy life, or to help their children buy a house,” adds the firm.

“Although a wave of older consumers will increase the competition for condominium apartments in particular, this cohort will not invest in only one property type,” says Phil Soper, who adds : “Our research shows that smaller towns and smaller markets recreational attract more investment than the larger cities. This important segment of the population perceives our large cities like are generally unaffordable for the retired. “

Thus, among respondents planning to purchase a new property, 45 % reluquent a separate house, 32 per cent a condominium, and 10 % a semi-detached house or row, and 5% would be somewhat interested in a recreational property. But in terms of accessibility, 56 % of people surveyed feel that the housing market in their city is impregnable. We guess, this percentage increases to 78 % for residents of British Columbia, to 63 % for those in Ontario. It is 50 % in Quebec. They are, therefore, 34 % say open to the idea of moving to another city or suburbs, where the price is more affordable.

Another peculiarity of this segment population is to the good financial health that it displays. Thus, 58 % of respondents say they have reimbursed between 95 and 100 % of their mortgage. For the purchase, 54 % would have a budget of less than that amount to $ 450,000, and 25% of $ 450,000 or more. They are therefore little sensitive to the tightening of the mortgage rules in effect since January.

However, many of them host more children. More specifically, 44 % say they will not leave the nest before the age of 21 to 25 years, but 21 % evoke rather 26-30 years of age and 18 %, more than 30 years. Royal LePage recalls that in its survey of the critical mass of millénariaux published last year, 14 % of these members indicated to live with their parents. “Our research of 2017 on the largest cohort of first-time buyers in Canada, that we call “the critical mass of millénariaux”, has shown that its members are many to stay in the family nest, well beyond the traditional age of exit, ” said Mr. Soper.