February 2005

Today I'm going to discuss "Baby Boomers". You might think this is a strange subject, since Amron Homes builds homes and since when have we also become experts on the aging population issue? Well… there is a connection and I will get to it.
Baby boomers are those born in the 20 years after the Second World War. Why so many children were conceived during that time period is a subject in itself and I'm not going there.

Statistics Canada states that "by 2016, Canada will have far more seniors than children aged 14 and under, a phenomenon never before recorded".

By 2026, one of every 5 people will be a senior. Seniors will comprise 21% of the total Canadian population compared with 13% in 2000.

How this will affect housing is a very interesting theory. Over the last few years, we at Amron Homes have found that of all the styles of homes we build, two storey homes are by far becoming the most popular. Look around and you will see that other builders have discovered this too.

The biggest factor in the popularity of two storeys is plain and simple; money! Two storey homes are cheaper to build, and as a result, cheaper to own. By building "up" instead of "out" we eliminate the cost of extra foundation and extra roof.

Then, of course, with land prices going sky high, we found that we can fit a large two storey home onto a very small (and affordable) building lot.

On the positive side, what's wrong with saving a buck? Building a very affordable two storey on a very affordable small lot makes good economic sense.

But… here's my theory on the down-side of that scenario. When you decide to sell your two storey home (in 2026) who's going to buy it? Old folks won't. Remember that 1 of every 5 Canadians is now a senior. My theory is that the inability to market two storey homes will cause them to drastically fall in price; possibly not being able to even "give" them away?? Think about that!

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