Colliers International

Colliers International
HJ Properties

HJ Properties

June 05, 2013 09:00 ET

Baby Boomers More Likely to Downsize to Multi-Family Homes Despite Preference for Single Family Detached Properties

Survey by Colliers International and HJ Properties Reveals Buying Preferences of Baby Boomers in Metro Vancouver's Fraser Valley

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 5, 2013) -

Editors Note: There is one photo associated with this press release.

A new survey released today by Colliers International and commissioned by HJ Properties, the developer behind award winning low rise community Waterstone, clarifies that Baby Boomers (aged 49 - 67) in Metro Vancouver's Fraser Valley region intention to sell single-family homes as they age.

The poll by Vision Critical, which surveyed Baby Boomers living in the Fraser Valley found that 46.2 per cent of those surveyed have a preference for single-family-style homes, compared to 38.1 per cent who favor multi-family living. However, the survey further revealed that in reality, 53.8 per cent are likely to purchase a multi-family home when they do buy. Furthermore, 63.2 per cent revealed they are more likely to purchase a property that is smaller than their current home.

"As Boomers age, there's a desire among many to simplify their lives, which includes alleviating some of their belongings and their space," says Scott Brown Senior Vice President of Colliers International. "There's also a growing need amongst this group to secure funds for retirement and investment, encouraging them to opt for a multi-family home to free-up equity."

At the same time, over 70 per cent said they expect to become empty nesters within the next five years. Data further suggests this will become a reality sooner for 38.6 per cent, who anticipate their children will move out within the next two years.

The report further reveals a large proportion of the group wishes to remain within the same neighbourhood when they do move from their current homes. According to the data, 34.2 per cent plan to move within 10 kilometers, compared to 21.4 per cent who plan to move to another city, or more than 21 kilometers from their current home and community.

"Even as they transition out of their large single-family homes, Boomers in this region have a desire to stay in the community," says Brown. "They've planted their roots here and don't want to move to a new urban market. As housing preferences evolve however, it becomes more of a matter of need versus desire and demand is being created for a new type of product in this region."

Among Baby Boomers in this group, the majority (73.8 per cent) cite price as the single-largest influencer in future home purchase decisions, with the next most significant criteria including proximity to amenities (50.8 per cent), sense of community and neighbourhood setting (34.9 per cent), and accessibility (24.6 per cent).

Furthermore, when they do make the transition out of their single-family home, 50 per cent said the aspect that will be the most difficult to leave behind is their outdoor space, yard, and/or garden, while 33.3 per cent reported location to neighbourhood shops, restaurants, cafes, financial services, health care, etc, 25.6 per cent revealed storage space, and 26.5 per cent named entertaining space.

Finally, the data suggests that if equity is realized in the sale of their home, many (36.3 per cent) plan to use 75 to 100 per cent toward the purchase of a new home. Moreover, if additional equity exists, the highest number of respondents said they will put remaining equity towards their retirement savings (59.8 percent), while 32.5 per cent will invest, and 13.6 per cent will assist their children with the purchase of a new home.

About Colliers International

Colliers International is a global leader in commercial real estate services, with over 13,500 professionals operating out of more than 482 offices in 62 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.

In 2011 and 2012, the International Property Awards recognized Colliers International with three awards: Best Commercial Property Consultancy, Best Commercial Property Consultancy Marketing and Best Commercial Property Consultancy Website in Canada.

For the latest international news from Colliers International in Canada, visit www.collierscanada.com/news or follow us on Twitter:@collierscanada.

About HJ Properties

Over 250 homes have been built and sold at Waterstone to date. With the introduction of Esplanade, we enter our final phase. The visionary behind Waterstone, HJ Properties continues to dedicate its attention to constructing quality residences of superior craftsmanship and exceptional value. HJ does this by leading a team of BC's finest architects, engineers and designers to create homes that look lovely - and last, too.

Colliers International and HJ Properties Fraser Valley Baby Boomer Survey
Survey Results for Respondents Aged 49 - 67, Currently Living in the Fraser Valley Who Plan To Sell Their Primary Residence in the Near Future
Fraser Valley (All Markets) Langley Surrey
Which of the following homes would be your ideal home to move to?
Multi Family 38.1% 39.6% 37.4%
Single Family 46.2% 41.7% 45.2%
Retirement 4.7% 4.7% 6.1%
Undecided 11.1 14% 11.3%
How likely are you to purchase a multifamily home, that is, a residence in a building with more than one physically connected household?
Likely 53.8% 58.1% 56.5%
Unlikely 43.2% 39.5% 39.1%
Not Sure 3% 2.3% 4.3%
What would be the ideal size of the home you will seek when you sell your current home?
Bigger 8.5% 11.6% 5.2%
Same Size 25.2% 18.6% 29.6%
Smaller 63.2% 65.1% 65.2%
Not Sure 3% 4.7% n/a
Ideally, how close to your current home would your new home be? (Within 10 Km?)
Within 10 KM 34.2% 37.2% 29.6%
Ideally, how close to your current home would your new home be? (Within 21 Km?)
More than 21 KM 21.4% 14% 26.1%
What criteria will you use primarily to guide your multifamily purchase decision?
Size of Home 20.6% 28% 18.5%
Price 73.8% 72% 75.4%
Proximity to current neighbourhood 4% 4% 1.5%
Accessibility - 24.6% 20% 26.2%
Interior design 18.3% 16% 16.9%
Add ons - parking storage, fitness, green space, ease of maintenance, security 23.8% 36% 18.5%
Advanced appliances 3.2% 4% 3.1%
Community neighbourhood setting 34.9% 32% 38.5%
Proximity to amenities (retail, financial services, cafes, etc) 50.8% 40% 58.5%
Proximity to friends and family 23.8% 28% 21.5%
Space to entertain 15.9% 20% 16.9%
Undecided 0.8% n/a n/a
Which aspects of your current home will be the most difficult to leave behind?
Storage Space 25.6% 23.3% 27.8%
Entertaining Space 26.5% 25.6% 25.2%
Outdoor space/yard/garden 50% 62.8% 47.8%
Location to neighbourhood shops, restaurants, cafes, financial services, health care etc 33.3% 30.2% 37.4%
Proximity to friends/family 20.5% 18.6% 20.9%
Personalized upgrade to interior/exterior design upgrades or appliances 26.1% 30.2% 24.3%
None of these 15.4% 11.6% 15.7%
When do you expect all of your children to move out of your home?
2 years 38.6% 27.8% 34.1%
3-5 years 33.7% 55.6% 31.7%
6-9 years 8.4% 5.6% 9.8%
If you ultimately sell your current home and equity is realized from the sale, what percentage of the profit will you expect to spend on your new home?
Less than 10% 2.1% 2.3% 2.6%
10% - 24% 3.4% n/a 5.2%
25% - 49% 12.8% 14% 11.3%
50 - 74% 29.5% 37.2% 28.7%
75 - 99% 14.1% 11.6% 14.8%
100% 22.2% 23.3% 23.5%
Not sure 10.3% 7% 12.2%
If you ultimately sell your current home and equity is realized from the sale, what will you expect to do with the remainder of equity that is not utilized to buy a new home?
Retirement Savings 59.8% 67.7% 58.1%
Assist Children with a new home 13.6% 12.9% 16.3%
Invest 32.5% 45.2% 26.7%
Put the money towards Mutual Funds 5.9% 9.7% 5.8%
Misc Items 16% 12.9% 18.6%
Undecided 13.6% 12.9% 11.6%

To view the photo associated with this press release, please visit the following link: http://www.marketwire.com/library/20130604-hjhouse1.jpeg

Contact Information

  • Talk Shop Media
    Katie Stevens
    PR Contact
    604.738.2220

    Colliers International
    Scott Brown
    +1 604 661 0877
    scott.brown@colliers.com