Canada Housing Market

Canada’s housing market may be heading for a major demographic shift.

As the country’s population ages, more homes could eventually move through the market because of downsizing, inheritance, estate sales, or seniors transitioning into different types of housing.

But the shift may not happen quickly.

According to CMHC, many older Canadians are staying in their homes longer, and the likelihood of seniors selling their homes tends to rise most noticeably at more advanced ages. 

Canada’s Senior Population Is Growing

Canada’s population is aging, and that could have a major impact on housing demand over the next decade.

Statistics Canada projects that the share of Canadians aged 65 and older will continue rising in the coming years. The agency noted that by 2030, all baby boomers will have reached or passed age 65. 

That matters because a larger senior population could reshape the types of homes people need.

Instead of just detached houses for families, Canada may need more accessible condos, bungalow-style homes, rentals, assisted-living options, and senior-friendly housing in walkable communities.

Seniors Are Not Selling As Fast As Some Expected

There has long been an idea that baby boomers would downsize and release a wave of family homes back onto the market.

But CMHC’s research suggests that many seniors are staying in their homes longer than expected. The agency found that the tendency to sell rises more clearly among older age groups, meaning any increase in listings from senior households could be gradual rather than immediate. 

That means Canada may not see a sudden flood of homes hit the market all at once.

Instead, the impact could build slowly over the 2030s as more households reach later-life stages.

Downsizing Is Still Hard For Many Older Canadians

One reason seniors may not be moving is simple: downsizing is not always easy.

A recent RE/MAX Canada report found that 65% of Canadians aged 65 and older reported low or no downsizing options in their communities. The same report said only 16% of Canadians aged 65 and older planned to downsize in the next 10 years, while 57% planned to stay in their current home. 

That is a major issue for the housing market.

If older homeowners want to move but cannot find suitable, affordable, or accessible housing, they may stay put longer. That keeps larger homes off the resale market and limits supply for younger families.

Toronto, Vancouver, and Montréal Could See Different Trends

The impact may also look different depending on the city.

CMHC noted that senior households in Vancouver and Toronto have shown a stronger shift toward condominiums, while Montréal has seen more movement toward rentals. 

That could create different pressures across major housing markets.

In Toronto and Vancouver, demand for senior-friendly condos could rise. In Montréal, the rental market may see more demand from older households. In other parts of Canada, the issue may be whether communities have enough smaller, accessible homes for people who want to downsize locally.

Why This Matters For Younger Buyers

If more senior-owned homes eventually hit the market, it could add supply in established neighbourhoods.

That could help younger buyers, especially families looking for detached or semi-detached homes.

But this is not a simple fix.

Canada is still facing a major housing shortage. CMHC has estimated that Canada needs about 3.5 million additional housing units by 2030 to restore affordability. The agency also says housing demand will vary across the country depending on economic and demographic conditions. 

So even if more homes eventually come onto the market, it may not be enough unless Canada also builds more housing that matches what people actually need.

What This Signals For Canada’s Housing Market

Canada’s next major housing shift may not come only from interest rates, mortgage rules, or new construction.

It may come from demographics.

As more Canadians age into their 80s and beyond, more homes could gradually move through the market. But the pace will depend on whether seniors have realistic places to move.

If Canada does not build enough accessible, affordable, and downsizer-friendly housing, many older homeowners may keep staying put.

That could leave younger buyers waiting longer for supply that may arrive much more slowly than expected.

References

Canada Mortgage and Housing Corporation. (2023). Senior households’ impact on Canada’s real estate market.https://www.cmhc-schl.gc.ca/observer/2023/understanding-impact-senior-households-canada-housing-market

Canada Mortgage and Housing Corporation. (2023). Estimating how much housing we’ll need by 2030.https://www.cmhc-schl.gc.ca/observer/2023/estimating-how-much-housing-we-need-by-2030

RE/MAX Canada. (2026). 65% of Canadians 65+ report low or no downsizing options. https://realestatemagazine.ca/65-of-canadians-65-report-low-or-no-downsizing-options-remax-canada/

Statistics Canada. (2026). Population projections for Canada, provinces and territories, 2025 to 2075.https://www150.statcan.gc.ca/n1/pub/17-20-0003/172000032026001-eng.htm

Yahoo Finance Canada / The Canadian Press. (2026). Retirees delay downsizing plans as housing market slumps.https://ca.finance.yahoo.com/news/not-time-retirees-delay-downsizing-100009664.html