Today is the first day that the first of the Baby Boomers in the U S will turn 65.
Every day for the next 19 years 10,000 more will join them.
The Baby Boomers are of course that great bulge in the population that were born between 1946 and 1965.
In Canada the bulge started a year later in 1947.
Some say this is due to Canadians being less frisky than their American counterparts, however the official reason is slower repatriation of troops after World War 2.
There has been much comment and speculation on what this will mean to a great many things such as pensions and health care but not much that I am aware of on what effect this will have on the real estate market.
The exception to that is David Foot, the author of "Boom, Bust & Echo". In his best selling book he predicts that as Baby Boomers reach the age of 65 more of them will be placing their big homes on the market and downsizing.
What does this mean for the real estate market?
The birth rate in Canada dropped significantly after 1966, the last year of the Baby Boomers.
So today and in the foreseeable future there will be fewer workers than retirees.
In the 1980's there were 5 workers for every retiree.
That number is expected to fall to 2 workers for every retiree by 2031.
That means for the next 19 years or so the number of potential buyers for those big homes is going to be less and less as the waves of Baby Boomers reach 65 and beyond.
Not all Baby Boomers will of course place their big houses on the market, some will choose to stay.
But it is reasonable to assume that enough of them will to increase the supply dramatically.
And we also know that the number of buyers for those big houses will be fewer.
According to the law of supply and demand if you have an increase in supply and a decrease in the demand prices inevitably have to fall.
Food for thought if you are reaching this stage in your life and are thinking it may be time to join other Toronto MLS Listings or Homes for Sale in Mississauga
What do you think?
John Lavin is a full time realtor with 25 years experience helping buyers and sellers of homes, condominiums and investment properties in Mississauga and Toronto.If you are looking for Toronto Condominium Listings or Mississauga Condos For Sale why not put my 25 years of experience to work for you.