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Originally Posted by CorsiHockeyLeague
Also property tax increases... but this assumes you're never selling your house. Lots of people, when they retire or when they go empty nest or some time after either of those milestones will sell their home and downsize to be able to travel, or sell it to move somewhere else now that they're not tied into a school district or work commute, or a thousand other things. Increase in home value has a huge impact on that.
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Some do. But not most.
One of the reasons Canada has a housing shortage is planners figured most homeowners would downsize once they became empty-nesters, freeing up detached homes for young families. That assumption has proven to be unfounded. It turns out most people become strongly attached to their homes and communities, and the great majority stay in those homes they raised children in until they die. There are millions of 2,000+ sq/ft homes in this country lived in by aging couples who have no plans to downsize or move.
I know cases where seniors have considered downsizing to a new condo or townhouse, but the price of the latter is so high there are barely any savings realized by the move. Better to stay in that $600k detached home in a familiar neighbourhood than sell it and buy a $480k condo, with all the attendant cost and disruption.
Also, it’s becoming increasingly common for adult children to move back into those homes long-term. My 50-something sister recently moved back in with my 80-something mom in our childhood home. It not only makes financial sense for both of them, but community care advisors push strongly for seniors to remain in their homes, as that corresponds to better health outcomes.