Photo: James Bombales
Canadian retirees and Baby Boomers are increasingly opting to rent in expensive housing markets, such as Toronto and Vancouver, in order to afford recreational homes.
According to a new survey by RE/MAX, one in three Canadians say they own or want to own a recreational home. But, in order to live in a city while owning a recreational property, many retirees are opting to live as renters in urban centres, especially in high-priced cities Toronto and Vancouver.
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“Using their recreational properties every so often while renting them out for the rest of the year, these individuals are renting a principal residence where they live while buying where they play,” reads the report, published today.
The survey of RE/MAX brokers and agents across Canada found that 91 per cent of respondents said that retirees drive demand for recreational properties — a big difference compared to last year’s findings when retirees dominated only 55 per cent of regions.
Interestingly, the survey found that more Baby Boomers and retirees are increasingly moving out of urban centres entirely and choosing to buy recreational homes outside the city.
“It’s clear that many put the equity they received from those sales into the purchase of a recreational property with the intention to retire in comfort and away from the city,” said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada, in a statement.
The survey also found that more than half of Canadians who own recreational property, or are considering buying one, said that savings was their primary source of funding, followed by a loan, home equity and inheritance.
RE/MAX notes that buying a recreational home isn’t the only option retirees have in order to live out the “Canadian Dream.”
“Many are choosing to rent recreational properties, often by pooling resources with friends and family, which speaks to recreational properties still being in high demand,” said Christopher Alexander, Executive Vice President and Regional Director, RE/MAX INTEGRA Ontario-Atlantic Canada Region, in a statement.