Empty-nesters eager to downsize as kids leave home These days, there are a lot of differences between the real estate markets in Canada and the U.S., but there’s at least one aspect that’s common to both. We’re both seeing the impact of a major demographic group reaching a new stage in their lives, as aging ‘baby boomers’ become ‘empty nesters’ and decide its time for a change in their current real estate situation.
The importance of the ‘boomer generation’ on real estate markets across North America is expected to continue in the next few years. Not surprising, really, when you consider the numbers. According to Statistics Canada, the baby boomers, i.e. those born between 1946 and 1965, numbered 9.4 million at the 2001 Census. ‘Boomers’ represent nearly one-third of Canada’s total population, while south of the border, there are 78 million American boomers.
As boomers enter a new phase of their lives, ‘empty nesters’ are on the rise here in Canada, while sixty-six (66) percent of Coldwell Banker® real estate professionals in a recent U.S.-based survey reported an increase in home purchases from the empty nester demographic over the last three years.
The desire to downsize is the reason cited by empty nesters as the reason for a move, according to more than half of the brokers (52 percent) surveyed. This Coldwell Banker survey of 150 U.S. brokers also reflects current trends reported by brokers at the forefront in local markets here in Canada.
“Clearly the baby boomer demographic is making powerful waves across all areas of North American culture,” says Gary Hockey, president of Canadian Operations, Coldwell Banker Real Estate, LLC. “Many empty nesters are no longer content to remain in the same home from marriage to retirement, and our brokers are seeing this impact in their local markets. There’s a clear spike from boomers downsizing or changing homes once children are out of the house and we expect this trend to grow over the next few years.”
The study also found that empty nesters want to stay engaged and active, choosing homes near places where they can pursue their passions. Key findings from the survey include: - 50% of empty nesters are looking for single-family homes, while 49% are looking for condos or townhouses.
- 18% of Coldwell Banker broker respondents noted that empty nesters move in order to be closer to their children or grandchildren.
51% of brokers surveyed said empty nesters select new homes based on the proximity to services such as recreation, cultural activities and golf |