Houses in Edmonton and across Canada are being affected by a mass shortage in real estate. Inventory is at a record low and many Canadians are struggling to find a place to live. Affordability is a thing of the past given the current market conditions. Global News wrote in an article that the average housing price in Canada will surpass $860,000 by the end of 2022. RE/MAX reported in early December of 2021, that 37 out of 38 markets were to remain seller’s markets in 2022. But, why is Canada experiencing such an extreme scarcity of housing? The answer can be chalked up to one generation and a global pandemic.
The Baby Boomers have once again disturbed the real estate market. All because they refuse to leave their large homes in the face of the ongoing pandemic. The Baby Boomers are a generation that is born between 1946-1964. This generation owns a significant share of the real estate available in Canada.
Contrastively to previous generations, the Baby Boomers are continuing to work past the usual retirement age of 65. Most are not ready to give up their homes and downsize. This is a contributing factor to where Canada's inventory problem begins.
Usually, once a person reaches 65 they retire and downsize or move to a retirement community. Which, in turn, frees up real estate for younger generations. However, given the state of the pandemic, Boomers have been increasingly reluctant to forfeit their large single-family homes.
Canada saw some of the highest nursing home death rates from COVID-19. This is a big contributor as to why many are more inclined to stay in their houses. Moreover, lockdown restrictions and increased time spent indoors are making many people (not just boomers) appreciate additional space.
Sell Houses in Edmonton Today!
For more information on this topic check out the article “Aging in place” by the National Post. If you have any questions about the current real estate market in Canada, contact me today! Houses in Edmonton are selling quickly, so it’s important to get them while you can. I look forward to hearing from you soon.
