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The Current Landscape
Canada's housing market remains a defining feature of the country's economy. For many retirees, home equity represents a significant portion of their net worth—often more than their investment portfolios.
Understanding current trends helps you make informed decisions about staying put, downsizing, or unlocking home equity.
Key Trends in 2026
- Regional variation — Prices and trends differ significantly by city
- Interest rate sensitivity — Market responds to Bank of Canada decisions
- Immigration impact — Continued population growth supports demand
- Supply challenges — Housing construction struggles to keep pace
- Affordability concerns — Many markets remain stretched
Housing Decisions for Retirees
Staying in Place
If your home is paid off, staying put means low housing costs (just maintenance, taxes, and insurance). Consider whether the home still suits your needs as you age.
Downsizing
Selling a larger home for a smaller one can unlock significant equity, reduce maintenance burden, and simplify life. The freed-up capital can supplement retirement income.
Reverse Mortgages
These allow you to access home equity without selling or moving. However, they come with higher interest rates and reduce the inheritance you leave.
⚠️ Important: Approach reverse mortgages cautiously. Understand all fees and implications before proceeding.
Real Estate as Investment
Your Principal Residence
Your home isn't an investment in the traditional sense—you need somewhere to live. Capital gains on principal residences are tax-free, which is valuable, but you can't easily access that equity without moving.
REITs as an Alternative
For real estate exposure without landlord hassles, consider Real Estate Investment Trusts (REITs). They trade like stocks and pay regular distributions.
💡 Note: Don't count on home price appreciation for your retirement plan. Markets can be unpredictable, and your home's value shouldn't be your primary retirement asset.
Location Considerations
Some retirees move to lower-cost regions to stretch their dollars. Others prioritize proximity to family, healthcare, or familiar communities. There's no wrong answer—but think through the implications carefully.
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About Maple Wealth Guide
Maple Wealth Guide is an independent Canadian financial education website. Our team of educational writers researches and explains investment concepts, retirement-related topics, and personal finance information for Canadians aged 50 and over. We are not licensed financial advisors and do not provide personalized recommendations. All content is for educational purposes only.