baby boomers said they wanted to change the world — and they will.
Seniors will account for nearly one-quarter (24%) of the Canadian population by 2036, and the real estate market is poised to change significantly because of their influence, according to a new report from the Canada Mortgage and Housing Corporation.
"Aging baby boomers will generate demand for condominiums and for home adaptations and support services aimed at allowing them to continue living comfortably in their homes," said the ninth annual Observer report, which looks at the effect of housing on Canada's economy.
In fact, the demand for condos in general continues to be strong, especially in cities, where they accounted for one-third of all new housing starts in 2010, up slightly from 29% the previous year. Overall, condos make up 11% of the Canadian market.
Demand for all types of homes was greater than the supply available. This, combined with low interest rates, helped raise the average sale price of a home by 5.8% — to $339,042.
Sixty-eight percent of Canadian households own their homes, and 42% of them are mortgage-free, the report said.
Overall in 2010, the CMHC said, housing-related spending contributed $330 billion to the economy — up 7.1% from $308 billion the previous year.
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