Seniors rarely downsize. Here’s why it hurts first-time homebuyers

Experts say it's a myth that seniors who own their homes are keen to downsize to fund their retirements, when the reality is they're largely staying put.

Realtor Barry Lebow specializes in helping seniors downsize — moving out of the family homes they’ve lived in for decades to a smaller place that’s a better fit for their aging lifestyle.

From the outside, that might look like the natural progression: feeding a healthy bit of turnover into the housing supply as move-up buyers seek their own family home.

But the reality is a bit different when it comes time to sell, Lebow, who works in the Greater Toronto Area, said in an interview.

“Our customers are not always happy customers,” he said. “Almost all seniors do not want to move.”

Experts say it’s a myth that seniors who own their homes are keen to downsize to fund their retirements, when the reality is they’re largely staying put, in part because they don’t like the downsizing options, making it harder for young prospective buyers to break into the housing market.

Seniors are in fact the demographic that’s least likely to move, according to data from the 2016 census.

“It’s actually quite rare,” said Mike Moffatt, founding director of the Missing Middle Initiative at the University of Ottawa.

Lebow said that when seniors do move, it’s often because they’re facing mobility or money issues — or both.