Quote:
Originally Posted by Policy Wonk
Anecdotes are a look into the decision making of individuals. Why did these couples with giant empty houses in Edgemont, Country Hills and Santana decide the stay there? Well you can ask them that question.
The demand, conceptually is probably already there. The issue is that for many of these couples appears to be that the move doesn't make sense financially. If you're healthy the age at which your independence will be significantly diminished is later and later.
I am pessimistic about Calgary's future because I don't perceive much of a future for Alberta as an oil producer. But we having to be facing a whole other magnitude of decline for there to be nobody who wants to either live in these houses or build a new stucco McMansion in their place.
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I know a number of individuals and couples of the boomer generation who want to downsize, have less space to clean/repair, and avoid shoveling their driveways and mowing the lawn. Particularly if they have an appetite for travel and are away from the house for possibly months at a time.
Ideally, many would be moving to a condo. However, when you compare monthly expenses after adding often substantial condo fees and special assessments, it doesn't necessarily work for them upon first glance. Personally, I think by selling a $500,000 house and moving into a $300,000 condo, the excess equity retained from the sale of the house would cover any additional monthly costs in conjunction with some simple investments. But for many, it's difficult to take that leap when they are currently only paying property taxes, with mortgage completely paid off.