The Downsizing Gap: Why Only 1 in 10 Canadians Actually Do It

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Almost everyone with a big, quiet house says the same thing eventually: the kids are gone, the stairs are a lot, this place is more than we need now. The plan has probably existed for years — sell, take the equity, move into something smaller, actually enjoy the next stretch of life.

And yet, most people never do it.

The numbers are more telling than the anecdotes

Recent research puts a real figure on what a lot of realtors already sense: only about 10% of Canadians say they intend to move to a smaller home within the next decade. Among people 65 and older — the group you'd expect to be downsizing most actively — that number rises only slightly, to around 16%. Nearly half of seniors surveyed say they plan to stay exactly where they are.

That's a wide gap between intention and action. Understanding why closes a lot of the hesitation.

The math feels scarier before it's actually run

A big part of the hesitation is financial, and it's a reasonable worry. Selling costs — realtor fees, land transfer tax, moving expenses, sometimes renovations to prep a home for sale — can add up to a meaningful chunk of the proceeds. When people picture that alongside today's smaller-home prices, the "net benefit" of downsizing can look thinner on paper than it feels in their head.

The problem is that most people are estimating this, not calculating it. The actual math — what your specific home would likely sell for, what a specific target property costs, what land transfer tax actually applies, what's left over — is usually more favourable than the back-of-napkin version people carry around for years without checking.

There's also a quieter financial pressure showing up more often: a meaningful share of seniors report that supporting adult children financially is cutting into retirement savings, which changes the downsizing calculation from "do I need less space" to "what does my whole financial picture actually need to look like."

Sequencing matters more than people think

For most BC downsizers, selling the family home first and then buying the smaller property protects more of the built-up equity than buying first — it avoids carrying two properties at once and gives a clearer, real number to work with when shopping for the next place, rather than an estimate.

It's also worth knowing that BC's Property Transfer Tax applies to the new purchase (generally 1–2% for most downsizer price points), and that the home-flipping tax rules generally don't apply to anyone who has owned their current home for more than two years — which is the overwhelming majority of people considering this move.

Downsizing options matter too

One more honest piece of the picture: a majority of Canadians aged 65 and older report limited or no downsizing options in their own community — not enough smaller homes, condos, or townhomes in the neighbourhoods they actually want to stay in. That's a real constraint, not just hesitation, and it's part of why "downsizing from the inside" — closing off unused rooms rather than actually moving — has become common enough that researchers have given it a name.

Knowing what's actually available locally, before deciding whether downsizing is realistic, changes the conversation considerably.

This isn't about giving something up

The framing that keeps people stuck is "downsizing" as loss — smaller, less, letting go. The more useful framing is what it actually frees up: money that's currently sitting in walls and square footage you're not using, available instead for the things retirement is supposed to include. Travel. Time. Being closer to family. Not managing a yard you no longer want to manage.

Where this leaves you

If the plan has been sitting in a drawer for a few years, the way out of that gap is almost always the same: run the actual numbers on your actual home, rather than the estimate you've been carrying around. That's a conversation, not a commitment.

This is general information and market conditions vary. Please consult a financial advisor for guidance specific to your retirement and tax situation.

Be gentle with yourself — this chapter doesn't have to be figured out today, just the next right step. I'm here when you're ready.

— Navi

Book a free consultation: calendly.com/impactrealtygroup111/home-seller-consultation

Sources: ReMax Canada downsizing research, 2026; industry reporting on Canadian retiree downsizing trends; BC Property Transfer Tax and BC Home Flipping Tax (Bill 15) guidelines.