Those agents with investor clients in Atlantic Canada would do well to keep in mind the effect Baby Boomers are going to have on real estate trends, says a new report, noting that condo and high-quality rental projects will be increasingly favoured by this population cohort.
According to the TDP Trends report from Turner Drake & Partners Ltd., the next 20 years will see the Boomer generation passing into two new life stages.
“While this produces an aggregate decline in demand for real estate, those wishing to take advantage of these demographic trends should look at some particular types of development,” states the report.
“The Boomers are like a pig passing through a python; a creeping bulge which creates strong demand for real estate favoured by their incipient life-stage while leaving an over-supply in their wake.”
The reports says this generation will work longer, especially on a part-time basis and when they truly retire, they will demand convenient access to cultural, recreational, travel and even post-secondary educational opportunities.
“The latter is an especially promising trend for our many attractive university towns, which currently face declining enrolment,” said the report.
A waning appetite from Boomers for the responsibility that comes with home ownership may also favour condominium and high-quality rental projects in those areas that can attract retirees. That could mean big business for investors – and the real estate agents who represent them.
The report also points out that the “comparatively better health of aged boomers suggests demand will disproportionately go towards lower-order care levels that are designed to support some level of independence.”
This will produce a commensurate increase in demand for these types of properties, another option for those looking for property investments in the region.
Written by: John Tenpenny