Retiring Boomers in Canada Facing Housing Crisis
In Canada, when you look at affordability issues of housing often focus on younger generations and all of their problems that break into Canadian Real Estate Market.
But according to new report from DBRS, a credit rating agency says that it’s seniors who will get some worst affordability problems in the coming year, because supply of senior oriented housing is not keeping up with growth of population in that particular group.
Authors Erin Stafford, Karen Gu and Stephanie Hughes said that seniors from Canada are facing huge housing shortage as number of baby boomers are increasing who turned 65 and coupled with low supply and property vacancy as well as rates for general soaring rent.
According to Statistics Canada data, a rapid and steady increase in senior population. For the very first time ever, as per 2016 census, there are more seniors in Canada as compared to the children who aged 14 and under.
Number of seniors population in Canada is projected to double by 2036, to between count of 9.9 million and 10.9 million people, as comparative to 5.9 million population in 2016 census.
But supply of senior housing is not just keeping up. “Between years 2006 and 2016, rate of increase for senior population of Canada averaged at 21.7%, this % is more than the double rate of increase in home supply,” DBRS report states.
Karen Gu, co-author of the report and a vice-president at DBRS explained that rising cost of houses in Canada may hit senior citizens very hard.
Gu told to HuffPost Canada that they believe that seniors are the vulnerable population. They are more in the need of affordable housing because most of the seniors live on fixed income.
General market of developers, general housing supply is not for the seniors.Gu also suggested that housing crisis among seniors is affecting overall housing market in Canada.