Household debts and demand for senior-friendly housing increases, CMHC report

A recent federal report stressed upon the need for senior-friendly housing in Canada in the coming years. According to Canada Mortgage and Housing Corporation, a-quarter of the Canadian population will consist of senior citizens after next 25years.

CMHC claims seniors will start demanding a different kind of residence, unlike the typical double-storey houses to raise their kids. There is a likelihood that condominiums will become an alternate option. In 2010, condominiums were a-third of all housing starts in Canadian urban centers.

Moreover, CMHC believes the demand will increase for smaller homes and institutional buildings with time. There’ll probably be an active market for renovators.

On the other hand, the rising household debt in Canada has become a serious issue.

In a year-end publication released Thursday, CMHC mentioned that mortgage debt accounts for 68% of total household debt, certainly the largest contributor.

Moreover, personal lines of credit have surged in last few years, increasing at higher growth rates than any other sub-component of household debt held by chartered banks.

“It is important that consumers and stakeholders continue to be vigilant in monitoring both the magnitude as well as the composition of household debt and take appropriate action,” CMHC said.

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