With the country’s oldest Baby Boomers reaching 80 next year, the demographic shift is in full swing. By 2040, projections from the Government of Canada indicate that nearly a quarter of the population will be aged 65 and older.
The reality of Canada’s aging population is becoming increasingly apparent. With the country’s oldest Baby Boomers reaching 80 next year, the demographic shift is in full swing. By 2040, projections from the Government of Canada indicate that nearly a quarter of the population will be aged 65 and older.
Unlike previous generations, today’s seniors are generally healthier, more financially independent, and engaged in active lifestyles. Many continue to work or participate in their communities well into their retirement years. However, the housing needs of older Canadians vary widely, ranging from independent living and multi-generational housing to senior communities, assisted living facilities, and long-term care (LTC) homes.
Where seniors live differs significantly across Canada. Data from 2017-2018 shows that nearly 80% of seniors resided in urban areas, while rural communities in the Atlantic provinces and northern Canada had higher concentrations of older adults. By 2021, regions such as Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick, Quebec, and British Columbia had higher proportions of seniors compared to the national average.
The aging population is more pronounced in certain regions, particularly in Atlantic Canada. For example, in 2021, nearly 24% of Newfoundland and Labrador’s population was over 65, compared to the national average of 19%. This shift presents challenges for provincial governments, which must provide healthcare and other public services despite receiving federal funding that does not account for age distribution.
Rural areas also face unique challenges. As the population ages more rapidly outside urban centres, questions arise about accessibility, infrastructure, and the ability of seniors to remain engaged in their communities.
A significant number of Canadian seniors prefer to stay in their own homes rather than move to institutional care settings. Government of Canada data indicates that over 92% of seniors live in private residences, with many intending to remain there as long as possible.
However, aging in place presents its own challenges. Access to home care services is often limited, and homes may require modifications to accommodate changing mobility needs. A 2022 survey found that while nearly all Canadians over 45 wished to remain at home as they aged, only 12% could afford the cost of a Personal Support Worker (PSW). The cost of these services varies widely, with Ontario PSWs charging between $28 and $38 per hour, making full-time care financially prohibitive for many.
Renovations to improve accessibility can also be expensive. Basic modifications like widening doorways, installing handrails, and adapting bathrooms with roll-in showers can cost tens of thousands of dollars. While some financial assistance is available, such as the Ontario Seniors Home Safety Tax Credit, many seniors find these upgrades difficult to afford.
For those seeking an alternative to remaining at home, seniors’ lifestyle communities offer a middle ground between independent living and institutional care. These communities provide social engagement, fitness programs, chef-prepared meals, and accessibility-friendly amenities.
Senior Residential Networks have adapted their offerings to meet modern expectations, focusing on active lifestyles, wellness, and community engagement. Many seniors are drawn to these communities for the social benefits, structured programming, and ease of access to care services.
Despite growing demand, availability of senior residences remains a concern. According to the Canada Mortgage and Housing Corporation (CMHC), the vacancy rate for seniors’ housing declined in most provinces except Newfoundland and Labrador in 2021. The cost of residence varies widely, with standard accommodations averaging $3,075 per month.
For seniors with complex healthcare needs, LTC facilities remain a necessity. Canada currently has over 2,000 LTC homes, but demand continues to outpace supply, leading to lengthy waitlists. A study by C.D. Howe Institute found that about one in nine new LTC residents could potentially have remained at home or in a retirement community if adequate support had been available.
The COVID-19 pandemic exposed serious weaknesses in Canada’s LTC system, prompting increased scrutiny and calls for reform. Public confidence in LTC homes has declined, with 96% of Canadians over 65 stating that they would do everything possible to avoid moving into one. Future reform efforts will need to focus on improving both care quality and working conditions for healthcare providers.
A common assumption has been that aging Baby Boomers, who currently own 41% of Canada’s housing stock, would flood the market with inventory as they transition to alternative living arrangements. However, CMHC data suggests that seniors hold onto their homes well into their 90s, meaning the impact on the housing market may not be seen for several more years.
When they do choose to downsize, many seniors are opting for condominiums, particularly in cities like Vancouver and Toronto. In contrast, seniors in Montreal are more likely to rent. The number of senior renters is rising across Canada, with factors like downsizing, reduced maintenance responsibilities, and financial considerations playing a role.
Despite the growing demand, the supply of senior housing has not kept pace. Development challenges, including rising construction costs, lengthy approval processes, and high land prices, continue to limit new projects.
According to the Real Estate Institute of Canada (REIC), an additional 450,000 LTC and retirement home units will be needed by 2040. Private sector investment in senior housing is becoming increasingly attractive, given the gaps in government funding and the rising demand for age-friendly accommodations.
With an aging population, planning for senior housing must be a top priority. Provincial governments already allocate over a quarter of healthcare spending to individuals over 75, yet funding is not keeping up with demand. Policy changes, such as Quebec’s refundable tax credit for senior renters and increased investment in home care services, could help alleviate pressure on the system.
Experts advocate for integrating accessibility standards into building codes to ensure new homes are designed with aging in mind. Additionally, repurposing existing housing stock—such as underused condos or hotels—into senior residences could provide a cost-effective solution to increase availability.
The concept of naturally occurring retirement communities (NORCs) is another promising approach. These clusters of senior-friendly housing could be leveraged to offer coordinated services, combat loneliness, and create a more supportive aging environment. While Canada has struggled to scale NORCs beyond local levels, cities like New York have successfully implemented legislation and funding frameworks to support their growth.
As Canada’s population continues to age, ensuring that seniors have access to appropriate housing will be critical. A combination of policy reforms, investment in home care, and increased development of senior-specific housing options will be essential in meeting the diverse needs of older Canadians. By fostering age-friendly communities and reimagining senior housing solutions, Canada can better prepare for the demographic shifts ahead.
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Jenny is a business insurance broker with Waypoint Insurance. She can be reached at 604-317-6755 or jhansen@waypoint.ca. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/. Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social
Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4
Tags: #Jenny Holly Hansen #Senior Housing #BabyBoomers #Personal Support Worker (PSW) #Ontario Seniors Home Safety Tax Credit #Naturally Occurring Retirement Community (NORCs)