More developers recognize older Canadians as niche market that knows what it wants and is financially solid
Marty Hope
Sun
The source of so much older-Canadian wealth is, of course, their residential real estate. Agents like Calgarian Roberta Gullacher are almost bankers to a generation.
Canada‘s population is greying, but just around the temples so far.
The latest Altus Clayton Housing Report, which is put together by a Toronto-based research group, says the over-75 crowd — which it defines as seniors — is growing.
But it will be another 15 years before the demographic bubble has reached that far, says the report.
The report examines the implications of the aging population for the seniors’ housing market as the 21st century marches on.
For purposes of the article, seniors’ housing is defined as accommodation developed and operated for profit and geared to those 75 or older — such as retirement homes, apartments, assisted and independent living projects, but not government-regulated nursing homes or long-term care facilities.
According to the report, the majority of the aging population is sitting solidly in the age group of 55 to 74 years old.
They are not considered seniors, but the “primary lifestyle buyer group.”
They are fuelling the recreation housing industry by buying weekend escapes, holiday havens and future retirement homes in the Okanagan, California, Arizona and Mexico, and will remain the dominant group for the next decade.
“This represents the aging of the early baby boomers into this age cohort — the oldest baby boomers were about 60 years old at the time of the 2006 census and the youngest about 40,” says the report. “It’s not until that baby boom starts to head into the 75 and over age groups that the boom in seniors’ housing will take place.”
The report suggests that Canadian builders should, if they haven’t already, start making plans to provide housing for the over-75 gang. Have plans in place well before they arrive.
Not only is the population getting older, it’s more solid financially and more demanding about what it wants its homes to look like and the amenities that are included.
A growing number of developers have recognized the older Canadian as a niche market, have created products and are focusing more of their marketing approach to this grey-haired gang.
Those on the cusp of senior citizenry have broken trail, so to speak, in what is being made available and how it is being marketed.
“In some markets, lifestyle buyers [ages 55 to 74] have accounted for a larger share of new housing demand than would be expected based on demographics alone because local developers and builders increasingly offer housing specifically designed to attract these buyers,” says the Altus Clayton report.
From a developer’s perspective:
n They should consider providing a wide array of tenure — even in the same building.
n Not everybody wants to live in a studio apartment, so provide a selection of housing forms.
n Lifestyle and independence, regardless of physical limitations, are still the goal of seniors, so provide a selection of amenities.
n Outside the residence, residents might just enjoy relaxing in an atrium or using some other type of common-area amenity.
n As residents age, they might require increased levels of health care. Developments should include accommodation for independent living right up to long-term care.
Many older Canadians really don’t want to move. They’re comfortable, thank you very much, surrounded by friends and creature comforts.
Because they have the financial wherewithal, they can have some renovations done to adapt to their changing needs.
There have to be a gaggle of good reasons why seniors would leave their existing accommodation.
© The Vancouver Sun 2007
