Sixty-three per cent of respondents in Alberta say there is an even split between those downsizing and those opting to stay in their current homes, according to a Royal LePage survey released May 27.
The figure was the highest reported among provinces cited. In Manitoba and Saskatchewan, 46 per cent of respondents said most retirees are choosing to downsize. In Ontario and Quebec, 24 per cent said most are staying in their current homes.
Nationally, 44 per cent of respondents said their markets show an approximately even split. Twenty-eight per cent said a majority of people nearing or entering retirement are downsizing. Twenty-one per cent said a majority are choosing to remain.
The findings include results from both a public Leger survey and a Royal LePage advisor survey of real estate professionals.
A Leger-conducted survey of 1,626 Canadian adults from May 2 to May 4 found that 29 per cent of respondents planning to retire in 2025 or 2026 said they will continue to make mortgage payments on their primary residence into retirement.
"Today's retiree reality is much more nuanced," said Phil Soper, president and CEO of Royal LePage. "In the era of rotary phones and station wagons, burning your mortgage was the economic finish line."
Another 45 per cent of respondents planning to retire in the next two years said their mortgage is already paid off. Six per cent said their mortgage would be paid off before retirement.
Forty-seven per cent said they do not plan to downsize their home, while 46 per cent said they will do so within two years of leaving full-time employment.
"Home price appreciation over the past 25 years has been a double-edged sword for today's retirees," Soper said. "On one hand, it has delivered unprecedented financial gains. On the other, this generation is far more likely to have carried mortgage balances that would have been unimaginable to their parents or grandparents."
"While previous generations may have viewed mortgage-free retirement as the only option, today's retirees tend to be more open-minded," he said. "Traditional employment income may have dried up, but many are still comfortably managing their expenses and servicing mortgage payments, with income from investments, part-time work, or a working spouse."
Among those who said most retirees are downsizing, 43 per cent identified standard condominiums as the most popular property type. Adult living communities for those aged 55 and older followed at 25 per cent, and detached properties at 16 per cent.
When asked what features were most important to downsizers, 38 per cent selected a single-level layout. Other responses included proximity to hospitals, community amenities and services (27 per cent), proximity to family and friends (25 per cent), paid maintenance services (19 per cent), and covered parking (17 per cent). Respondents could select more than one answer.
The release also cited Statistics Canada data showing that 14 per cent of households with income earners aged 65 and older had mortgage debt in 2016, up from eight per cent in 1999.
The average retirement age in Canada reached 65.3 in 2024, up from 64.3 in 2020, according to Statistics Canada.
As of April 1, 2024, 10.24 per cent of Airdrie residents were aged 65 or older, according to the city's municipal census. That figure includes all residents aged 65 through 100 and over, based on reported age bands in the population breakdown.
A 2023 Royal LePage report stated that 24 per cent of first-time homebuyers were under the age of 30. Thirty-three per cent were aged 30 to 34, and 43 per cent were aged 35 or older. In the 2021 version of the same survey, only 33 per cent were aged 35 and up.
"Compared to their grandparents, today's retirees are enjoying about fifty per cent more years after turning 65," Soper said. "They're working longer, staying active, and in many ways, continuing the lives they led during their working years — just without the job."
"With people buying their first homes later and working longer, it's increasingly common for Canadians to carry a mortgage well into retirement, often by choice rather than necessity," he said.
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