Demographics won’t hurt the housing market

Demographic forces will aid, rather than hinder, the real estate market over the coming decade, says Benjamin Tal, deputy chief economist at CIBC in a report.

This is because the age group that makes up the majority of first time homebuyers (25-to-35) will continue to grow, he says.

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Those under 25 and from 45-to-54 are declining but they have been known to buy relatively few houses, finds the report.

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Immigration could also bolster the real estate market since the growth in population due to immigration will likely speed up due to new government policies.

Immigrants who have lived in Canada for 10 years or more have a greater tendency to own homes than native-born Canadians.

Read: Housing market cools

Tal also suggests that worries surrounding the 55-75 age group’s tendency to downsize are overblown since less than a third of homeowners in this demographic actually do.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.