a new look at the intergenerational home resale market

April 2016
A NEW LOOK AT THE
INTERGENERATIONAL
HOME RESALE MARKET
This analysis of the intergenerational home market is based on transactions concluded in 2015 through the real estate
brokers’ Centris® system. It presents sales trends for intergenerational homes in the province’s administrative regions
and in the most active regions of Québec. A comparison with conventional single-family homes is also provided in
order to highlight the differences between these two distinct markets.
The aging population remains an ever-present factor that will undoubtedly influence the evolution of intergenerational
cohabitation in the coming years. While the population aged 65 and over accounts for 18% of Québec’s population in
2016, it will reach 26% in 2036 as baby boomers become older. In addition, the number of households headed by a
person aged 75 and over will double in the next twenty years1. As a result, many families are turning to intergenerational
cohabitation as an alternative to the more traditional housing options, as it allows for mutual assistance and the ability
to provide aging parents with better living conditions.
Definition and features of an intergenerational home
Centris® defines an intergenerational home as a single-family home that includes an additional dwelling
that is used for cohabitation between parents and children. Intergenerational units most often consist of an
addition to the side of the house, although they can also take the form of an added second storey, a converted
basement, or an enlargement of the main floor. Because the difference between a bachelor apartment and an
intergenerational home is slim, this study includes listings of single-family homes that have an additional
dwelling, as they can also serve as an intergenerational unit.2 It is important to note, however, that unlike
a bachelor apartment, an intergenerational home can have a single address for both dwellings. Furthermore,
although a single common kitchen for both units may be acceptable under the law, we decided to exclude them
from our results to ensure that they reflect two separate dwellings within one single-family home. In addition,
the appearance of a conventional single-family home must be maintained so that it does not stand out in
residential areas where multi-family buildings are generally not allowed due to zoning laws.3 (See the Annex for
more information about the features of an intergenerational property).
QFREB, L’impact des tendances démographiques sur le marché de la revente au Québec (in French), February 2016.
The criteria used in this study to define an intergenerational home are different than those used in our previous analysis; thus, the results are not directly comparable. QFREB,
Are Intergenerational Homes Gaining in Popularity in Québec?, September 2014
3
http://www.apchq.com/lanaudiere/fr/membres-services-techniques-communication-aux-entrepreneurs.html_residence-avec-logement-au-sous-sol-ou-maison-intergenerationnelle.html
(in French)
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April 2016
Evolution of the Intergenerational Home Market
In 2015, 1,702 intergenerational home sales were concluded through the real
estate brokers’ Centris® system, an 8% increase compared to 2014 and a 12%
increase compared to 2010. In comparison, the total number of single-family
home sales increased by 5% in 2015, with 52,530 transactions. In addition, if
we look at the past six years, we see that the intergenerational home market
generally performed better than the single-family home market. However,
when analyzing intergenerational home sales as a proportion of all singlefamily home sales, we see that the proportion occupied by intergenerational
homes in Québec is progressing very slowly, reaching 3.2% of the singlefamily market in 2015 (see table 1).
We see that the proportion
of intergenerational
home sales in Québec is
progressing very slowly,
reaching 3.2% of the
single-family market in
2015.
Sales by Administrative Region
The administrative region of Montérégie registered the highest number of
intergenerational home sales in 2015, with a total of 382 transactions. The
administrative regions of Laurentides, Lanaudière and Montréal followed
with 369, 268 and 131 sales, respectively. In addition, some of the most
active geographic areas for intergenerational home sales included Mirabel
(50 transactions), Blainville (47 transactions), Gatineau (46 transactions)
and Terrebonne (46 transactions). Table 2 shows the number of sales of
intergenerational homes and conventional single-family homes in 2015.
The results differ slightly when we analyze the market share occupied by
intergenerational homes in the administrative regions we examined. In
terms of market share, the Laurentides region (5.7%) led the way, followed
by Lanaudière (4.6%) and Laval (4.2%). More specifically, the municipality of
Mirabel (10.9%) once again topped the list by obtaining the highest proportion
of intergenerational home sales among all single-family home sales, followed
by Terrebonne (8.4%), Mascouche (8.4%) and Blainville (8.2%).
Median Prices
For the year 2015 in the regions we examined, the average difference between the
median price of intergenerational homes and that of conventional single-family
homes was $21,412, or 9% higher for intergenerational homes4 (see table 3).
The Lanaudière administrative region registered the greatest difference, as the
median price of intergenerational homes was $265,000, which is $45,000 more
than the median price of conventional single-family homes (20%).
Some of the most
active geographic areas
for intergenerational
home sales included
Mirabel (50 transactions),
Blainville (47 transactions),
Gatineau (46 transactions)
and Terrebonne
(46 transactions).
For the year 2015
in the regions we
examined, the average
difference between
the median price of
intergenerational homes
and that of conventional
single-family homes
was $21,412, or
9% higher for
intergenerational homes.
To limit the impact of extreme values and the low number of transactions in certain areas, our median price calculations exclude all conventional single-family homes whose number
of rooms differ significantly from the features of the intergenerational homes that we examined.
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April 2016
The Laurentides and Outaouais regions ranked in second and third place with respective differences of
$37,500 (16%) and $27,750 (+13%). Results for the Chaudière-Appalaches administrative region are also worth
mentioning, as properties with an intergenerational dwelling sold at a median price that was $21,000 higher
(11%) than that of conventional single-family homes in 2015.
Longer Selling Times
For all of the regions as a whole, intergenerational homes generally remained on the market longer than
conventional single-family homes in 2015. It took an average of 17 more days for an intergenerational home to
find a buyer compared to a conventional single-family home.
The administrative regions of Laval and Montréal registered the
shortest average selling time for intergenerational homes at 94 and
97 days, respectively. The municipality of Saint-Eustache also stood
out with an average selling time of 98 days for intergenerational
homes in 2015. However, on average, intergenerational homes in the
administrative regions of Capitale-Nationale and Centre-du-Québec
as well as in Blainville and Fabreville sold faster than conventional
single-family homes. Average selling times by administrative region
and geographic area are presented in table 4.
It took an average of
17 more days for an
intergenerational home to
find a buyer compared to
a conventional
single-family home.
Conclusion
Although the intergenerational home market is evolving slowly in Québec, the fact remains that it is progressing
and seems to be gaining in popularity among Québec households. In a context where the population is aging,
intergenerational homes are without a doubt an interesting option for promoting at-home care for seniors, while
reducing their housing costs and improving the living conditions of the elderly.
This publication is produced by the Market Analysis Department of the QFREB.
Paul Cardinal
Manager
Camille Laberge
Maïka Carrier Roy
Economist
Analyst
Contact us at [email protected]
© 2016 Québec Federation of Real Estate Boards. All rights reserved.
April 2016
Annex
The Québec government defines intergenerational homes as a housing concept that allows a family to cohabitate
with its aging parents in a single-family home that consists of two separate dwellings of different sizes. This
concept implies mutual support between generations, both socially and financially, in addition to promoting
at-home support for seniors.5
It is only since 1998 that the Act Respecting Land Use Planning and Development allows municipalities to issue
permits to build intergenerational homes or modify an existing property to add an intergenerational dwelling. As
a result, they are mainly located in suburban residential areas. Moreover, the municipal requirements generally
require that the home retain the appearance of a single-family home so that they can properly integrate into the
neighbourhood in which they are located.6
According to the Association provinciale des constructeurs d’habitations du Québec (APCHQ), an
intergenerational residence is no different than a single-family home as defined in the Québec Building Code.
As such, although recommended, fire separation and sound transmission standards are not required between
the two dwellings. Note, however, that laws and regulations vary according to the municipality where the
intergenerational property is located.7
http://www.thesaurus.gouv.qc.ca/tag/terme.do?id=7604 (in French)
CMHC, Intergenerational Homesharing and Secondary Suites in Québec Suburbs, April 2004.
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http://www.apchq.com/lanaudiere/fr/membres-services-techniques-communication-aux-entrepreneurs.html_residence-avec-logement-au-sous-sol-ou-maisonintergenerationnelle.html (in French)
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April 2016
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Table 1: Evolution of Sales and Proportion of Intergenerational Homes
in the Province of Québec
Province of Québec
2010
2011
2012
2013
2014
2015
Intergenerational homes
1,518
1,563
1,586
1,534
1,581
1,702
10%
3%
1%
-3%
3%
8%
55,614
53,314
54,018
50,033
49,819
52,530
0%
-4%
1%
-7%
0%
5%
2.7%
2.9%
2.9%
3.1%
3.2%
3.2%
Variation (%)
All single-family homes
Variation (%)
Proportions
Source: QFREB by the Centris® system
April 2016
Back to text
Intergenerational
Conventional
single-family
Market share
(%)
Capitale-Nationale
106
4,278
2.4%
Centre-du-Québec
28
1,409
1.9%
Chaudière-Appalaches
49
2,498
1.9%
Estrie
53
2,086
2.5%
Lanaudière
235
4,960
4.5%
La Plaine
23
277
7.7%
Mascouche
39
427
8.4%
Repentigny
27
771
3.4%
Terrebonne
45
502
8.2%
Laurentides
368
6,090
5.7%
Blainville
47
526
8.2%
Mirabel
50
410
10.9%
Saint-Eustache
33
399
7.6%
Saint-Jérôme
37
587
5.9%
122
2,833
4.1%
23
460
4.8%
Mauricie
34
1,524
2.2%
Montérégie
382
12,016
3.1%
Le Vieux-Longueuil
30
548
5.2%
Saint-Hubert
35
610
5.4%
128
5,332
2.3%
22
528
4.0%
105
3,288
3.1%
46
934
4.7%
38
1,435
2.6%
1,702
50,835
3.2%
Administrative Regions
Laval
Fabreville
Montréal
Rivière-des-Prairies/Pointe-aux-Trembles
Outaouais
Gatineau
Saguenay/Lac-Saint-Jean
Total for the province
Source: QFREB by the Centris® system
April 2016
Back to text
Administrative Regions
Capitale-Nationale
Centre-du-Québec
Chaudière-Appalaches
Estrie
Lanaudière
La Plaine
Mascouche
Repentigny
Terrebonne
Laurentides
Blainville
Mirabel
Saint-Eustache
Saint-Jérôme
Laval
Fabreville
Mauricie
Montérégie
Le Vieux-Longueuil
Saint-Hubert
Montréal
Rivière-des-Prairies/Pointe-aux-Trembles
Outaouais
Gatineau
Saguenay/Lac-Saint-Jean
Source: QFREB by the Centris® system
Intergenerational
Conventional
single-family
$275,000
$170,000
$210,000
$181,750
$265,000
$235,000
$305,000
$308,750
$285,000
$270,000
$287,500
$287,500
$294,450
$205,000
$309,900
$290,000
$140,000
$280,000
$269,000
$276,000
$420,000
$297,900
$242,750
$224,750
$175,000
$272,500
$170,000
$189,000
$185,000
$220,000
$214,000
$235,000
$244,500
$254,250
$232,500
$306,000
$255,000
$235,000
$205,000
$295,000
$267,000
$162,000
$262,000
$288,250
$267,450
$428,000
$290,000
$215,000
$207,000
$177,000
Price difference
$2,500
$0
$21,000
-$3,250
$45,000
$21,000
$70,000
$64,250
$30,750
$37,500
-$18,500
$32,500
$59,450
$0
$14,900
$23,000
-$22,000
$18,000
-$19,250
$8,550
-$8,000
$7,900
$27,750
$17,750
-$2,000
1%
0%
11%
-2%
20%
10%
30%
26%
12%
16%
-6%
13%
25%
0%
5%
9%
-14%
7%
-7%
3%
-2%
3%
13%
9%
-1%
April 2016
Back to text
Administrative Regions
Capitale-Nationale
Centre-du-Québec
Chaudière-Appalaches
Estrie
Lanaudière
La Plaine
Mascouche
Repentigny
Terrebonne
Laurentides
Blainville
Mirabel
Saint-Eustache
Saint-Jérôme
Laval
Fabreville
Mauricie
Montérégie
Le Vieux-Longueuil
Saint-Hubert
Montréal
Rivière-des-Prairies/Pointe-aux-Trembles
Outaouais
Gatineau
Saguenay/Lac-Saint-Jean
Source: QFREB by the Centris® system
Intergenerational
116
139
159
140
139
143
104
148
135
139
112
115
98
133
94
76
167
137
125
103
97
109
104
111
155
Conventional
single-family
124
146
131
132
117
97
97
99
96
121
116
86
69
96
89
91
135
109
92
72
86
93
93
76
139
Difference
(days)
-8
-7
28
8
22
46
7
49
39
18
-4
29
29
37
5
-15
32
28
33
31
11
16
11
35
16