A long-held notion among some real-estate watchers that many boomers plan to exit their lavish suburban bungalows in exchange for a condo in the heart of the city in retirement, it turns out, is baloney.
They rather like the homes they’ve raised families in and spent their working lives improving.
At least that’s the response found in a survey from the Royal Bank of Canada published Thursday that shows the vast majority of both retired and working baby boomers desire to stay in their home throughout their final decades.
Eighty-three percent of respondents aged 50 or older found that option most appealing, preferring to pay for in-home health care as required.
Half of those surveyed said they would accept living in a retirement residence where care was provided, while less than a quarter said they would consider living with a family member.
“Remaining in familiar surroundings – in a home of their own, in their current neighbourhood and close to family and friends – is definitely how Canadian boomers with to live when future health changes occur,” RBC head of retirement strategies Amalia Costa said in an accompanying release.
Health rather than downsizing was the major factor in moving, the poll found.
The poll rebuffs a common held theory in some corners that once boomers retire, their empty palatial homes won’t be as appealing as they were when their kids were still around.
Certain economists and market observers have suggested many would opt to cash out of homes that have climbed sharply in value over the years, and move to a comparatively inexpensive condo free of the maintenance burdens that come with a house.
It also throws some cold water on hopes that condo markets with mounting oversupply, like the one in Toronto, will find new demand among retirees.
The poll was conducted by Ipsos Reid on behalf of the bank between late February and early March, and is based on responses from 2,159 adults aged 50 or older across the country with household assets of least $100,000.
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