14 May 2018

If rents keep growing at the same pace of 4.7% annually, we’ll see the national average number reaching about $4,000 by 2025, the report says.

And while British Columbia and Alberta provide subsidies in such cases, Ontario’s seniors can rely only on private payments.

The main problem is the combination of a strong demand and a limited supply. According to DBRS, by 2026, more than 2.4 million Canadians aged 65+ will need the “supportive care” which is provided by retirement homes. It includes medication control, meal preparation, regular housekeeping etc. By 2046, there will by 3.3 million of Canadians who need such care.

A strong activity at the real estate market has given a safe cushion for many seniors, says advocate Isobel Mackenzie. According to Statistics Canada, the growing value of assets, especially home values, raised the average net worth of Canadians between 55 and 64 to $669,500 in 2016, marking a 18.9% increase from 2012.

“We can see a real phenomenon, especially in Toronto and Vancouver, as the home values were up two or three times, but the cost of assisted living didn’t show the same hike,” – Mackenzie noted. “Nevertheless, it’s not going to be that way forever, and it’s important to remember that your house will not produce income as an asset. That’s why a serious issue is how to produce the income for seniors without private pension funds.”