That has pushed home prices down from post-pandemic peaks, even as house values have still significantly appreciated compared with decades ago when many current retirees entered the market.

“Probably the biggest challenge that we’re seeing right now is really just the fact that home prices are off so much from their 2022 highs,” said Ben McCabe, founder and CEO of Bloom Finance, a Canadian fintech company that helps homeowners access home equity in retirement.

While economic forecasts predict a rebound later this year, a sizable chunk of would-be buyers want to be sure the market is at its lowest before they make their move. For sellers, these circumstances have delayed their plans.

Marco Pedri, a broker with Shoreline Realty, said many retirees he works with have been “cautious if now’s the right time” to move to a smaller living space.

“One of the biggest risks some seniors or older individuals need to consider is that the equity might have shrunk due to the prices of these homes and what they could likely sell the property for in today’s market,” he said.

“What we’re seeing is if a lot of these seniors don’t necessarily need to downsize, then … maybe now’s not the right time to sell.”

The “friction costs” of moving are also a deterrent in the current environment, said McCabe. He estimated that Realtor fees, land transfer taxes, and moving or renovation expenses can absorb up to 15 per cent of home sale proceeds.

But it’s not just soft home prices and moving expenses pushing seniors to stay put, he added.

Given current economic conditions, some are also putting off relocation plans to financially support family members longer than initially anticipated. Three-quarters of seniors indicated that supporting family is cutting into their retirement savings, according to research from Bloom collected last September.

That study surveyed an online sample of 510 Canadians 55 and older who are members of the Angus Reid Forum. Such online surveys, including Re/Max Canada’s research, cannot be assigned a margin of error because they do not randomly sample the population, according to the polling industry’s professional body, the Canadian Research Insights Council.

“A significant cost of living crisis … is impacting all age brackets, but I think has had a disproportionate effect on older Canadians, just because a lot of older Canadians have a fixed amount of retirement savings,” McCabe said.

“(They feel), ‘My downsizing strategy is looking a bit more shaky than it previously was just given where my home price has gone and I’m feeling this, sort of, other financial stressor, which is the requirement to support my younger loved ones.'”

But McCabe said he doesn’t expect the downsizing pause to last. With condo prices falling in cities like Toronto and Vancouver amid an influx of new supply, it could present an attractive opportunity for those who planned to make the leap from a single-family home.

The Re/Max Canada survey suggested a long-term downsizing trend could be on the horizon, driven by Canada’s increasingly aging population. By 2030, nearly 25 per cent of Canada’s population will be over 65, up from close to one-fifth of Canadians, according to a 2024 Statistics Canada report.

“As we enter those years where people are getting older, this need will become even more and more apparent,” said Syrianos.

Pedri said he expects an eventual uptick of seniors looking to “rightsize” their living arrangements to better fit their reality, especially with many not having the “luxury” of waiting for the market to pick up. He said some may simply feel maintenance of the property has become too much for their lifestyle to delay the move any longer.

“I think some people will consider what’s best for them and focus more on a lifestyle approach rather than just strictly the numbers,” he said.

“Although the market dictates that it may not be a good time to sell, you have to listen to your body and what’s right for you.”

This report by The Canadian Press was first published May 3, 2026.

Sammy Hudes, The Canadian Press