Why Seniors Aren’t Moving and How It’s Locking Out First-Time Buyers
With over 73% of seniors still owning homes, downsizing is rare. High costs, limited options, and emotional ties stall turnover, straining the first-time buyer supply in Canada.
✍️ By Debbie Balfour | WBN News | July 28, 2025 | Click HERE for your FREE Subscription to WBN News and/or to be a Contributor.
Canada’s housing crisis isn’t just about high prices or interest rates—it’s about a logjam at the top, where aging homeowners are staying put and stalling the flow of real estate for everyone else.
In theory, downsizing is a natural part of aging. But in practice, Canadian seniors are holding onto their family homes longer than ever, and that’s creating ripple effects throughout the housing market, particularly for young, first-time homebuyers.
A 2023 report from Royal LePage found that 75% of baby boomers still own their homes. Yet only 17% of those homeowners have any immediate plans to downsize. The rest are aging in place, a trend driven by emotional, financial, and structural barriers.
“Almost all seniors do not want to move,” says Toronto-area realtor Barry Lebow. “Their home is their identity; it’s where they raised kids, built memories, and planned to grow old.”
Emotional attachment is just the beginning. Downsizing isn’t always financially beneficial. Even selling a mortgage-free home comes with costs: land transfer taxes, legal fees, realtor commissions, moving expenses, and perhaps most importantly, buying a new home in a sky-high market. According to a 2022 survey by RE/MAX, nearly 40% of boomers considering downsizing said they couldn’t find a smaller home in their price range or desired location.
Then there’s the inventory problem. Suitable, age-friendly housing is scarce. Seniors don’t want to trade a backyard for a small condo with high maintenance fees and no room for grandchildren. Many reject apartment-style living due to a lack of accessibility, storage, or green space.
Meanwhile, first-time buyers are left fighting over a dwindling supply of starter homes. This “housing gridlock,” as some economists call it, is preventing turnover in older neighborhoods that would typically be entry points for young families.
Statistics Canada reports that more than 73% of Canadians aged 75 and older still own their homes, making them the most housing-secure age group. In contrast, homeownership rates for Canadians under 35 have plummeted to just 36.5%, down from nearly 44% in 2011.
Policy experts say incentives could help. While first-time homebuyers receive tax breaks and rebates, downsizing seniors often don’t qualify for similar benefits. Introducing tax credits, reducing moving costs, or removing capital gains taxes on secondary properties could encourage more seniors to make the leap.
Municipalities are also trying zoning solutions. Toronto, for example, has recently introduced “gentle density” initiatives, such as legalizing multiplexes citywide. While promising, these changes take time to impact inventory and don’t guarantee seniors will see them as attractive alternatives.
Still, unlocking this segment of the market may be key to solving the affordability crisis. Without movement from the top, the entire housing ladder remains jammed, and young Canadians are stuck without a first rung to stand on.
If we want more people in starter homes, we’ll need to start by helping those at the top step down, comfortably, affordably, and without losing what they value most.
Debbie Balfour | Real Estate Investing Success Coach + Podcast Host
📍 Website: www.DebbieBalfour.com
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