A crisis in senior’s housing is now on Canada’s doorstep as the Baby Boom generation enters retirement, according to a new report by ratings agency DBRS Ltd.
The report argues that the lack of supply of places in Canadian retirement homes is dramatically pushing up rents across the country. The average rents for seniors’ homes varied across the country in 2017, with Ontario holding the highest rate at $3,526 per month and Quebec the lowest at $1,678 per month. Should rents continue to grow at the current rate of 4.7% a year, the national average could reach just over $4,000 a month by 2025, the report states.
By 2026, more than 2.4 million Canadians aged 65 and older will need the supportive care offered at retirement homes, including monitoring of medications, regular housekeeping, meal preparation and medical services. As more Baby Boomers turn 65, the number requiring such care is expected to reach 3.3 million by 2046, DBRS concludes.
While more senior housing units are developed each year, not enough are being created to keep up with demand. Canada’s senior population swelled by 21.7% between 2006 and 2016 — more than double the rate of the supply increase. Differing provincial policies mean seniors’ ability to absorb rent increases will diverge depending on where they live. British Columbia and Alberta offer subsidies for retirement home costs, while Ontario’s retirement homes rely entirely on private payments.
