BLAME HOME SHORTAGE ON BOOMERS SITTING TIGHT

Most Montrealers still want to live in a single-family detached home, yet achieving that dream is becoming harder for many people. It’s not just that prices are rising and mortgage terms are becoming less flexible. In some parts of Montreal, inventory of single-family homes is so low that even those with money struggle to find a place to buy.

One reason: the predicted wave of baby boomers selling their detached homes to move into condos, smaller homes or less expensive areas just hasn’t happened.

A recent survey released by Royal LePage reveals the vast majority of boomers in Quebec have no plans to buy a new home in retirement. Nor do they plan to downsize, buy a property with family or friends, or move to a less expensive city or into a cottage or other secondary property.

According to Dominic StPierre, senior director of Royal LePage in Quebec, many boomers here simply like the lifestyle they have and seem reluctant to make a change as long as their health and finances allow them to maintain the status quo.

“Years ago, everyone thought boomers would flee the bigger city and go to the suburbs and buy a smaller house there. The other trend we thought would happen is that they would all go into condos,” said St-Pierre. “What we did not anticipate is that, especially in Quebec, a lot of them are just holding on to their properties and trying to live in that property for as long as they can.”

Compared with boomers in other parts of the country, Quebecers were the least likely to say they had any plans to move at all. Just 12 per cent said they planned to buy a new home in retirement, and almost threequarters said they had no plans to downsize. Sixty-two per cent of boomers said they would strongly or somewhat prefer to renovate their existing home rather than buy a new one.

Maybe this is because it isn’t until just before retirement that most people finally find themselves living in their dream home.

Another recent survey commissioned by Century 21 found that more than half of Canadians over age 55 say their current living situation is very close to their ideal, compared with 41 per cent of respondents overall. And compared with other regions of Canada, Montrealers were among the most likely to say they were close to their ideal living situation.

The survey also found that the younger you are, the less likely you were to be satisfied with your living situation. While 56 per cent of people 55 and older said their current home was very close to ideal, only 20 per cent of those 18 to 24 and 33 per cent of those 25 to 44 could say the same.

In Montreal, as in the rest of Canada, the single-family detached home is still preferred by most people, especially families with children. Only 27 per cent of Montrealers said they preferred to live in an apartment or condo.

But in many desirable neighbourhoods, it’s becoming increasingly challenging for Montreal families to find an affordable detached home.

“The fact that the boomers are staying put means in neighbourhoods where there are a lot of boomers, it creates an effect where prices of houses are going up,” said St-Pierre. “There are a lot of new buyers who want to purchase homes, but there aren’t a lot for sale now.”