A recent report found that prices for luxury condos outpaced prices for luxury detached homes throughout the first half of 2018 in a few key markets in Canada. The reason? Baby boomers are increasingly choosing to sell their large homes and target the luxury condo market, according to Phil Soper, president of Royal LePage, who produced the report.
“Baby boomers are finally exiting their large family homes,” he said, “and luxury condos, with their low-maintenance lifestyles, are the favoured destination.”
This is a key demographic shift that’s occurring throughout Canada, and according to Soper, it signals a big change in the way people think about modern housing, compared to past generations.
“People looked at condominiums as an entry-level form of housing…something for people less-well off or earlier in their lives to purchase,” he said.
The shift? Baby boomers are now re-thinking the benefits of the condo lifestyle. Once their children move out of the house, many baby boomers are choosing to downsize and set down roots somewhere more convenient. Condos provide less maintenance and are usually located in more walkable areas. Luxury condos often have the space and comprehensive amenities that baby boomers don’t want to compromise on, while boasting all the perks of low-maintenance living.
Now that more millennials are in the workforce than ever, their parents’ generation is free to consider more convenient housing options. Expect this trend to continue as mature couples and professionals embrace the condominium lifestyle and developers build for that demographic.