‘Downsizing wave’ on horizon

But many potential downsizers ‘taking a wait-and-see approach’

Author of the article:

Linda White  •  Postmedia Content Works

Published May 09, 2026  •  4 minute read

Muskoka is increasingly becoming a primary residence choice for higher-end downsizers.  REMAX CANADA

A long-term ‘downsizing wave’ could be on the horizon, as more older homeowners consider how and where they want to age, new REMAX Canada research suggests.

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“While downsizing won’t happen all at once, the direction is clear,” REMAX Canada President Don Kottick says. “Canada’s aging population will undoubtedly shift demand and availability of housing over time, but progress will depend on improving access to housing that meets seniors’ needs.”

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More older homeowners are thinking about how and where they want to age.  REMAX CANADA

According to a 2024 Statistics Canada report, roughly 7.74 million Canadians are aged over 65 right now, accounting for almost one-fifth of the total population. By 2030, that percentage will increase to almost 25 per cent.

The REMAX Canada survey found 49 per cent of Canadians report low availability of downsizing housing options in their communities, with an additional eight per cent indicating no availability. Perceived constraints are more pronounced among older Canadians, with 65 per cent of those aged 65 and over reporting low or no availability.

Limited options

Just 10 per cent of Canadians plan to move to a smaller home over the next 10 years. The number of intended downsizers is higher among those aged 65 and older, at 16 per cent, while 46 per cent plan to remain in their current homes. Among those thinking about downsizing, 73 per cent expressed concern about their options, including 32 per cent who are very concerned.

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“Many downsizers are ready to make a move but are finding limited options within the Greater Toronto Area (GTA),” says Vivian Risi, president and broker of record, REMAX Your Community Realty. “This highlights a broader supply challenge, rather than just a downsizing issue…Creating more suitable downsizing opportunities could help ease supply pressures.”

Downsizers increasingly focus on lifestyle, lower maintenance and overall value but the GTA continues to fall short in delivering the right mix of housing, particularly ground-oriented options, Risi notes. As a result, there’s growing interest in lifestyle-focused markets such as Prince Edward County, Niagara Region, Collingwood/Blue Mountain, Kawartha Lakes and even Muskoka for higher-end downsizers.

“At the same time, Simcoe County is emerging as a key growth area, particularly Barrie and Midland, which are no longer secondary markets; they’re becoming primary destinations for GTA buyers.”

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Impact on younger buyers

Risi believes a sustained downsizing trend would have a meaningful and positive impact on younger buyers, particularly in today’s GTA market, where conditions remain relatively balanced, but inventory is still tight in key segments.

“If more downsizers choose to list their homes, it would add much-needed inventory, especially in the detached and low-rise segments, ease competition and reduce bidding pressure in entry-level family homes and help improve overall market fluidity by unlocking movement across all price points,” she says.

Downsizers play a critical role in the housing cycle. “When they move, it creates opportunities for move-up buyers, which in turn opens doors for first-time purchaser. However, in the current environment across the GTA and surrounding areas, many potential downsizers are still taking a wait-and-see approach. Factors like interest rate uncertainty, affordability concerns and limited suitable replacement options are causing hesitation. As a result, the full benefit of this potential supply wave has yet to materialize, keeping inventory levels more constrained than they otherwise could be.”

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At the other end of the age spectrum, demand is expected to continue rising, with 23 per cent of Canadians aged 18 to 34 planning to buy their fist home in the next decade, REMAX Canada reports.

Downsizing tips

Downsizing is increasingly being referred to as ‘right sizing’ because ‘down’ can feel like loss or have negative connotations, reports Effy Terry, founder of Organize That, a professional organizing and systems design company that serves Toronto and Durham Region.

“This process is about aligning your space with your current life, not reducing your worth.” She offers these tips:

• Focus on categories, not rooms, so you can see the full volume and make clearer choices.
• Prioritize daily-use items and mobility-friendly layouts to support ease and safety.
• Always involve the person in decisions to help them maintain a sense of control and dignity.
• Capture the stories. Photograph meaningful items or write notes to preserve their history.
• Create a ’transition zone’ for items you’re unsure about. Not everything needs an immediate decision.
• Measure and plan ahead. Know what will fit in the new space.
• Lead with what’s staying, not what’s going. This shifts the mindset from loss to intention.
• Work in short, manageable sessions to avoid overwhelm and decision fatigue.
• Enlist support. Family and friends can help; a professional organizer with move management experience brings structure, neutrality and momentum.
• For higher-value items, consider an auction specialist or resale expert to ensure pieces are handled and sold appropriately.
• Be intentional about where things go. Thoughtful donation options can make parting with items easier, knowing they will be used and appreciated.

“At its core, right-sizing or downsizing is about creating a home that supports the next chapter with dignity, safety and intention,” Terry says.

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