As people grow older, they face critical decisions regarding their homes. Should they downsize to fund their retirement, or stay in their long time home? Trends in the Alberta residential real estate market along with personal preference are impacting the decisions baby boomers are making with regard to their homes.
Royal LePage recently published a Boomer Trends Survey to dig into some of the ways this demographic is choosing to live as they near retirement. The survey found that 58 percent of people in the this age bracket would prefer renovating their current home to moving to another location. However, 44 percent say this will change as they age and that they plan to move to a smaller home when they get older.
Downsizing is a more attractive option to those in Alberta than in most other provinces, with 31 percent considering a smaller home once children move out. Ontario has the same percentage of boomers claiming they would downsize after kids leave, with all other provinces claiming they are less likely to do so. Additionally, 50 percent of Albertans with children living at home expect their children to have moved out permanently by age 25.
Return on investment for residential real estate can vary depending on location. In some geographic areas across Canada, people may be more likely to choose not to own a home. However, in Alberta 94 percent of people surveyed believe that home ownership is a wise financial decision. People who are seeking to purchase or sell residential real estate, whether for downsizing or another purpose, should seek a lawyer to help them in this process.