More retirement homes on the way in Canada

By Special to MoneySense on June 17, 2015
Estimated reading time: 4 minutes

Retiring boomers want all the amenities—Wi-Fi, pools, and gyms

This article is 9 years old. Some details may be outdated.

Canada is in store for a seniors’ retirement home construction boom to accommodate a surge in the number of aging baby boomers, and those building the facilities say they’ll include all the boomer-friendly comforts and conveniences of home. Luc Maurice, a Quebec developer who’s spending $1 billion on new projects, is looking to double the number of units he operates in Quebec. And he expects at least $3 billion a year will need to be spent across the country to build and upgrade retirement facilities. “It’s not about waiting to die,” he said when describing what seniors are looking for in today’s retirement homes. Future seniors are expected to be wealthier, to live longer, healthier lives and to increasingly value their freedom and autonomy. Many will seek companionship because they have fewer children than current-day seniors, or no children at all. While not all will seek extreme luxury, seniors want quality condo-style amenities including modern kitchens and an array of optional services that allow them to live independently, said Maurice, who plans to add 17 buildings with more than 5,500 units in Montreal, Gatineau and Quebec City over the next few years. They expect Wi-Fi that eases communication with loved ones, common areas with recreational services like pools and gyms, access to gardens and lifelong learning. Many seek urban settings and want to be close to liquor stores, cafes and shopping. Most importantly, they want choice — about meals, activities and levels of care, says Thomas Wellner, CEO of global “senior living communities” operator Revera, which sees a doubling of its Canadian units in the next five years. “I think there are opportunities for much more relevant offerings to meet the needs of seniors that are coming,” he said in an interview. Quebec is Canada’s leader in retirement housing, accounting for about half of 2,794 residences with 224,342 rental units available for seniors 75 years and older, says a 2015 report from Canada Mortgage and Housing Corp. released Wednesday. About 18.5% of Quebec seniors live in 1,300 retirement homes, well in excess of the 9% Canadian average and 5% in Ontario. Nova Scotia had the lowest rate at just 1.9%. Average monthly rents for bachelor units and private rooms with at least one meal were lowest in Quebec at $1,521 and highest in Ontario at $2,815, said the CMHC. Prices increase dramatically depending on services provided. Units offering heavy care services averaged $3,520 in 2015, ranging between $2,881 in Quebec and $6,011 in B.C. Ontario’s retirement rental numbers are smaller because residents prefer home ownership and the province’s roots is in more costly assisted living. The Ontario Retirement Communities Association (ORCA) sees the province adding more independent living units as Canada’s seniors’ population more than doubles over the next 21 years to 10 million. By 2036, one quarter of Canada’s population is forecast to be 65 and older, up from 15% currently. “We do expect a slow growing boom,” says association CEO Laurie Johnston. “The baby boomers are not really going to hit the doorsteps of retirement homes for another 10 to 15 years so you will see capacity increase over that time, but the peak is still a ways away.” She said construction is already starting to pick up with access to financing beginning to improve. In addition to small operators, large developers like Amica, Signature Retirement Living and Chartwell Retirement Residences are proceeding with development projects. American REITs are taking a closer look at Canada and could lead a wave of amalgamations. Wellner expects the retirement rental gap between Quebec and the rest of Canada will narrow as seniors outside of Quebec begin using the equity in their homes to rent retirement spaces. “If we can convince folks to do that, there are many options that can be appealing and simplify life for them.” He pointed to an internal survey that found half of seniors are willing to consider such change if they can be assured they won’t outlive their savings, can remain active and have access to changing levels of care as they age. CMHC chief economist Bob Dugan says the relatively high 8.1% Canadian vacancy rate for retirement homes will likely constrain the pace of new developments. “It’s hard to say how this will evolve over time but one thing for sure is the population is aging, there will be more demand for residences for seniors. Whether it will be a boom or not, it’s hard to say.”

Comments Cancel reply

Canadian using his cell phone to check our Best robo-advisors in Canada ranking for 2024.

Investing

Best robo-advisors in Canada for 2025

Find out which Canadian robo-advisors offer the lowest fees, best support, top returns, and more, with MoneySense’s 2025 guide.

Best robo-advisors in Canada for 2025

Canadian man at 71 thinking about his RRIF withdrawal plan on a walk.

Retired Money

How to make sure you have enough money to fund your RRIF withdrawals

Once you start RRIFing, how do you make sure you have enough cash, and should you dial down risk?

How to make sure you have enough money to fund your RRIF withdrawals

Photos of the leaders of the NDP, Liberals, Conservatives and Green Party

News

How the federal election affects your finances

Here’s how proposals from the NDP, Liberals, Conservatives and Green Party could affect your cash flow—and maybe help decide...

How the federal election affects your finances

An older couple does stretches in a park

Retirement

OAS payment dates in 2025, and more to know about Old Age Security

Here’s how Canada’s Old Age Security pension works, who’s eligible for OAS, when you can start receiving OAS, and...

OAS payment dates in 2025, and more to know about Old Age Security

A senior-age woman looks at her tablet on a park bench.

Retirement

CPP payment dates in 2025, and more to know about the Canada Pension Plan

Here’s how Canada’s retirement pension plan works, who’s eligible for CPP, when you can start receiving CPP, and CPP...

CPP payment dates in 2025, and more to know about the Canada Pension Plan

Ask a Planner

When and how should I start drawing on my retirement savings?

There’s more than one way to optimize your income after retiring. Some strategies can boost wealth, and others may...

When and how should I start drawing on my retirement savings?

Retired Money

Canadian seniors, watch out for these scams

My MoneySense

“What a dumb mistake that was”: Dilys D’Cruz on money lessons and “painless saving”

The senior vice president of retail and wealth at Meridian shares the importance of budgeting and investing in your...

“What a dumb mistake that was”: Dilys D’Cruz on money lessons and “painless saving”

MoneyFlex

Playing with FIRE: Why financial independence looks different for young Canadians

Can Gen Z really afford to retire early? Here are some ways young Canadians can rethink the FIRE approach...

Playing with FIRE: Why financial independence looks different for young Canadians

A Canadian couple going over the duties of a power of attorney for property and if they should hire someone for the role.

Estate Planning

Can you hire someone to be power of attorney for property in Canada?

Here are the considerations before becoming a power of attorney for property and what to do if you’re unable...

Can you hire someone to be power of attorney for property in Canada?

More retirement homes on the way in Canada

Comments Cancel reply

Related Articles

Best robo-advisors in Canada for 2025

How to make sure you have enough money to fund your RRIF withdrawals

How the federal election affects your finances

OAS payment dates in 2025, and more to know about Old Age Security

CPP payment dates in 2025, and more to know about the Canada Pension Plan

When and how should I start drawing on my retirement savings?

Canadian seniors, watch out for these scams

“What a dumb mistake that was”: Dilys D’Cruz on money lessons and “painless saving”

Playing with FIRE: Why financial independence looks different for young Canadians

Can you hire someone to be power of attorney for property in Canada?