A survey commissioned by HomeEquity Bank shows 95 per cent of Canadian homeowners aged 75 and older are very satisfied or somewhat satisfied with their lives, compared to just 79 per cent of Canadians in their 50s.

Study’s happiness markers: Financial stability, quality connections & sense of purpose

“Our latest study unpacks different happiness markers for Canadians and how they shift as they age. We found a sharp distinction between those approaching retirement and those well into it,” says Katherine Dudtschak, president and CEO of HomeEquity Bank.

The happiness markers used in the study include financial stability, quality connections and sense of purpose.

“To be fulfilled, you need to look at all facets of your life,” says Vivianne Gauci, HomeEquity Bank’s senior vice president of customer experience. “Financial stability is a fundamental part of living a healthy and fulfilling life, but it’s not the only factor. Connections and purpose have critical roles to play, which is why enjoying a happy retirement requires a holistic approach.”

Here are the study results.

Financial stability

48 per cent of Canadians in their 50s feel very good or excellent about their finances, while 68 per cent of those aged 75 and older feel the same.

Likewise, more Canadians in the older age bracket (75 per cent) vs the younger age bracket (55 per cent) felt they could handle a major unexpected expense.

Quality connections

The study found that feeling connected and experiencing good friendships improves as people age from their 50s to 75+ (70 per cent versus 85 per cent).

As well, another indicator of connection, living in homes in good order and enjoyed by family members, improves with age (81 per cent versus 89 per cent).

Sense of purpose

Being active in their communities is more common for those aged 75 and up (48 per cent) than those in their 50s (30 per cent). Likewise, giving back to the community and supporting charitable causes increases with age (34 per cent versus 51 per cent).

Biggest stressors

For homeowners in their 50s, the biggest stressors include outliving retirement savings, not having enough to support themselves and the ability to leave behind a legacy they can be proud of.

This is exacerbated by a changing retirement landscape, which includes Canadians aging with more debt, limited cash savings and shrinking pensions, while living longer with increasing and different health care needs.

Review the full report here.

The vast majority of Canadian homeowners (94 per cent) plan to remain in their current homes for at least the next year, a report by Angus Reid and Financeit finds. Nearly a quarter of them note the higher costs of living as their reasoning.

Despite the Bank of Canada’s interest rate cut in June, increased living costs are still holding people back from large financial decisions like purchasing a new home. 30 per cent of those aged 35-54, the most cautious group, are resistant to moving because of this.

Renovations: A nice alternative

The report also found that 25 per cent of those who won’t move plan to renovate their homes within the next year.

“With the very high current cost of living burdening so many Canadians, we’re seeing a notable shift in homeowner behavior,” says Michael Garrity, executive chair of Financeit Inc. Canada. “More and more Canadians are choosing to stay where they are, and instead invest in renovating their current homes rather than moving to a new one. We understand that enhancing one’s current living space can be a more economical and satisfying option in the long run.”

As for their renovation goals, 53 per cent of homeowners wish to improve their home’s functionality, with Ontario homeowners the most likely to do so at 63 per cent.

21 per cent are looking to renovate to increase the value of their home, with 65 per cent of Manitoba homeowners looking to renovate for this reason. 37 per cent of those looking to renovate in the next year plan to remodel their kitchen, bathroom or basement, 24 per cent would like to landscape and 17 per cent will replace windows and/or doors.

Energy-efficient upgrades

The report also found that Canadians are looking for innovative ways to save money through renovations, with 62 per cent of homeowners likely to invest in energy-efficient renovations to save on utility costs.

Homeowners in Atlantic Canada were most likely to invest in energy-efficient upgrades, at 71 per cent.

View the survey results in more detail here.

Many of those who bought a single-family home in 2022 may be dealing with a rude awakening of their investment losing value as of last year.

Point2 analyzed 67 Canadian cities and found the values of single-family homes in 18 of them, along with condominiums in 26, were lower year-over-year.

These Ontario cities faced the biggest losses

The report shows that single-family homeowners who bought at the end of 2022 lost $163 every day for a year — meaning, their home is now worth nearly $60,000 less than what they paid.

New condominium owners in Mississauga were hit the hardest in this housing type, losing about $100 per day or $36,600 in total value. Kitchener and Markham came close to this.

Other parts of Canada took a hit

While Ontario cities faced the biggest losses for single-family homeowners, other Canadian cities were affected similarly, namely those in Kelowna, British Columbia, Victoria, B.C. and Regina, Saskatchewan.

Current buyers’ market with no buyers: “A very healthy correction”

Not so long before, these very locations were growing strong. Now, Benjamin Tal, deputy chief economist at CIBC World Markets calls them areas of “very healthy correction”, the report notes. In an interview for BNN Bloomberg, he states:

“We have more supply and less demand. This is becoming a buyers’ market — a buyers’ market with no buyers … It’s a very weak market. A dearth of listings had previously been propping prices up, but listings have increased as high interest rates and other costs put pressure on homeowners.

Prices went up by 45 per cent over the course of breakfast during COVID-19, so what you’re seeing now is a very healthy correction.”

On top of this, the report notes that Canadian Real Estate Association (CREA) data from as early as October show an activity slowdown, with no signs of changing until spring.

All hope not lost

Contrary to the severe losses faced by many Canadian homeowners, five B.C. cities saw increased values by over $100,000, some over $200,000. These were Vancouver, Richmond, Burnaby, Langley and Delta.

As well, condominiums in Coquitlam, B.C., Halifax, Nova Scotia, Richmond, B.C. and Calgary, Alberta saw earnings of over $50,000 from 2022 to 2023.

Read the full report here.