Housing Life Cycle: Stuck in phase II. - Kora Management
  • Mitch Speigel – Mortgage Agent
    Your Mortgage Group Professional
    Kora Management
    License #M08003984, FSCO #10315

  • Housing Life Cycle: Stuck in phase II.













    My aunt Sara always said that one should change houses every five years because needs change that often. This regime would also help eliminate the traditional buildup of junk. Although the real estate industry would love it, the expense of moving and the prevalence general inertia keep this from happening.

    Generally, there are three phases in the housing cycle:

    Phase I: Tiny downtown apartments or those close to where newly-weds are working: These allow them to build a career and some equity, before having a family.

    Phase II: Homes with backyards: When early apartment dwellers think about having children, they begin to look for lifestyle and lifestyle-type homes, often in the suburbs.

    Phase III: Empty-nesters looking to downsize: Older millennials, those born in the 80s, are now having children later by six years on the average and boomers are downsizing much later, if at all. These changes put a squeeze on phase II and, especially, on phase III.

    Baby Boomers

    Baby boomers, who are now hitting their 60s are now downsizing 20 years later than those  previously and are not expected to begin downsizing for another twenty years. This shift is occurring for several reasons:

    1. Seniors are healthier and are living longer than ever before.
    2. Seniors are looking to other solutions available presently, to give them the cash they need to remain in their homes, such as reverse mortgages and other forms of innovative financing.
    3. An increase in the availability of at-home long term care, often obviates the necessity of moving.
    4. Because seniors are healthier and for financial reasons, they wish to keep working and remain where jobs, full or part time, are available.

    Where will millennials raise their families?

    Since the squeeze is taking place in the larger cities for the most part millennials, are leaving cities and city centres for smaller centres, or distant suburbs and bedroom communities. In Toronto, Vancouver and Montreal, the outflow has tripled since 2015.

    There is a squeeze on phase II, homes for families, but at the same time, there is a large availability of bedrooms in underused large family homes, where seniors have chosen to remain rather than downsize. These bedrooms are being made available to the younger generations. Adult children are taking care of aging parents, who, in turn, help with child care, a win-win situation.

    Fish for dinner tonight, but differently: easy baked haddock in an eastern tomato sauce. Sauté onions, add canned diced tomatoes. Season with salt, pepper, dill and thyme, along with coriander seeds, cumin and cinnamon. Reduce to desired consistency; pour over fish and bake at 400 for 10 minutes per inch thickness.