Boomers rule the roost when it comes to real estate investment in Canada

The Age Factor: Understanding the Generational Divide in Canada's Real Estate Investment Landscape

When it comes to real estate investment in Canada, age is more than just a number. According to a recent report by Statistics Canada, the age group of real estate investors plays a significant role in the Canadian housing market. The report, titled "A Profile of Residential Real Estate Investors in 2020," provides insight into real estate investment across 5 Canadian provinces by breaking down the demographic characteristics of investors by categories like sex, immigration status, and age.

The report reveals that those 55 and older hold a substantial share in the real estate investment market. This trend is observed across all provinces looked at in the report—Nova Scotia, New Brunswick, Ontario, Manitoba, and British Columbia. The data underscore the extent to which intergenerational unfairness has become a feature of our housing system:

Residents aged 55 years and older were overrepresented among homeowners relative to their share of the population... residents 55 and older were even more overrepresented among investors. In all five provinces, they constituted the majority of resident investors—from 57.1% in Ontario to 66.9% in Nova Scotia—despite being a minority of the adult population in each province, from 39.8% in Manitoba to 48.3% in New Brunswick. Conversely, Canadians younger than 35 were significantly underrepresented among investors relative to their share of the adult population.

As Gen Squeeze has consistently pointed out, a generational lens is an absolute necessity for understanding the dynamics driving Canada’s housing crisis. Whereas (usually older) homeowners and investors benefit from the appreciation of property values, young people are left grappling with affordability issues.

We’re glad to see that Statistics Canada made it a point to look at housing data from the standpoint of age. (It’s worth noting that breakdown by age revealed the most stark inequalities–significantly greater than the likes of sex and immigration status.) We hope the practice of disaggregating data based on age becomes increasingly common and that governments at both federal and provincial levels make use of the report for policy-making purposes. 

Interested in diving deeper into our housing analysis? Check out our comprehensive housing policy solutions framework. 

Have thoughts on the Statistics Canada report or our analysis? We’d love to engage with you in the comments section below.

Remember, this is a platform for open dialogue and respectful exchange of ideas. Let's help each other better understand the intricacies of Canada's housing market and work towards equitable solutions.