Vacancy rate for seniors’ housing in Quebec rises

The vacancy rate for standard spaces in seniors’ housing in Quebec stood at 6.9 per cent in February, compared to 6.2 per cent at the same time last year, an analysis by the Canada Mortgage and Housing Corp. (CMHC) found.

However, the examination also speculates the arrival of the baby boomer demographic into the 75-years-and-over demographic could change the status quo when it comes to the provision of and nature of seniors’ housing in the province.

The survey notes that, while the arrival of boomers into the seniors’ housing demographic “will no doubt have a positive effect on demand,” uncertainty over whether they’ll necessarily head for traditionally designated seniors’ housing makes it difficult to determine whether their presence will in fact affect vacancy rates and demand.

BABY BOOMERS

The survey notes that “this uncertain outlook thus raises the key question for the future of this market segment: what will be the residential trajectory of the Baby Boomers? To what extent will they follow a different path than that of their parents? While some observers and specialists believe that the Baby Boomer’s distinct story will translate into different choices with respect to housing, others are of the opinion that this singularity will not be as pronounced as some expect.”

However, researchers add that “there remains little doubt that apartment building developers and owners, be they specialized in senior residences or traditional rental apartments, are and will look for products that are adapted to the needs, preferences and financial capacity of the Baby Boomers.”

The survey notes that the average rent for standard spaces for seniors (spaces where the residents receive less than 1.5 hours of care per day or are not required to pay an extra amount to receive high-level care) stood at $1,729 per month, compared with $3,180 for spaces requiring more care for residents. It also found that the vacancy rate for heavy-care spaces dropped to 4.2 per cent.