Top Real Estate Markets for Downsizers to Consider

Until the pandemic-era housing market, the tradition had been for senior homeowners to downsize from single-family homes to smaller residential properties like condominiums. Of course, everything has changed over the last few years amid a blend of rocketing post-crisis home prices, higher mortgage rates, and an immense cost of living.

A treasure trove of data has painted fascinating trends across the Canadian real estate market.

For instance, a November 2023 report from the Canada Mortgage and Housing Corporation (CMHC) found that more seniors are opting out of the conventional approach to their retirement by aging in their homes rather than erecting a for-sale sign. Or, as another instance, a March 2023 survey by Statistics Canada learned that more younger Canadians are downsizing their homes to reduce their monthly expenses.

But when should you even consider downsizing? Experts say it is always best to ask the right questions:

• Is your home too big to maintain?
• Have you paid off your mortgage?
• Do you wish to move closer to family?
• Do you vacation regularly and do not need a large home?
• Is there enough money for your retirement?

That said, for many older homeowners who do not want to maintain a detached house in Toronto, Vancouver, or Montreal and wish to live somewhere simpler and perhaps more affordable, what would be some of the top real estate markets for downsizers to consider now?

The Top Canadian Real Estate Markets for Downsizers:

Sault Ste. Marie, Ontario

In the Sault Ste. Marie real estate market, the MLS® Home Price Index (HPI), which is considered a more accurate measurement than average or median price gauges, is around $290,000. The average price is also about $290,000. This is perhaps one of Canada’s cheapest housing markets, allowing downsizers to save money and enjoy Ontario’s best nature.

Northern New Brunswick

According to the New Brunswick Real Estate Board (NBREB), the average price for a home in Northern New Brunswick is approximately $187,000. By comparison, the benchmark price in the broader provincial real estate market is about $284,000. Prices will vary by residential property categories, too, but it is still impressive to see home prices this cheap.

Red Deer, Alberta

Here is the deal: Many downsizers will generally avoid swapping one detached house for another detached house. They will typically opt for a townhome or an apartment. In the Red Deer real estate market, downsizers will come across quite affordable housing options. The Alberta Real Estate Association (AREA) data show that the average price for a row house and an apartment are below $230,000. The overall residential average price in Red Deer is just below $350,000.

Fort McMurray, Alberta

If you are searching for an impressive deal, we have one for you. According to provincial housing data, the average price for an apartment sold in Fort McMurray, Alberta, is slightly under $68,000. If you want something a little bit bigger, like a row house, the cost is roughly $189,000. This is less than half the cost of the average detached house sold to start 2024.

South Peace, British Columbia

British Columbians know that their province is perhaps the most beautiful one in the country. While many people see British Columbia as an expensive place to live, there are plenty of opportunities to buy a residential property on a budget. One of these is South Peace, located in the province’s interior region. The average price for a home sold is about $230,000, according to recent British Columbia Real Estate Association (BCREA) figures.

Downsizing as a Response to the Canadian Cost of Living

Yes, the cumulative effect of inflation has wreaked havoc on household budgets nationwide. Plus, the growth rate of inflation is still around three percent a year. This is a challenging environment for many Canadians, particularly seniors who might need to downsize to ensure they have enough money for retirement.

Inflation is a national challenge that is hard to flee. One of the most effective strategies to diminish inflationary bruising is trimming your most significant monthly expense: housing. Indeed, this goes beyond utilities and property taxes. You can ensure your loonie goes slightly farther by reducing monthly mortgage payments or even rent.

Ultimately, it comes down to weighing the benefits and risks of making such a drastic move. This is why it is imperative to research, crunch the numbers, and think about your options. Like buying a home was the most significant financial decision of your life, downsizing will also be a daunting task, whether you are in your 30s, 40s, 50s, or 60s. If this means relocating to Atlantic Canada or the Prairies, that may be the answer.