Owning a home no longer guarantees financial security in retirement, report finds

“There’s a general assumption… that owning your own home, especially in later life, is a sign that you’ve essentially made it,” report co-author Alex Bierman told CTV News (2). “We were shocked when we started looking at the data.”

Rising costs are eroding the value of homeownership

Rather than large, one-time financial shocks, the report highlights the cumulative impact of higher everyday costs such as utilities, home maintenance and groceries. Even for homeowners without a mortgage, those ongoing expenses are becoming harder to manage.

“I don’t think it’s so much these major life issues as it is the everyday, day-to-day need,” Bierman told CTV. “There needs to be repairs, there needs to be upkeep.”

That pressure is being compounded by broader cost-of-living increases, creating what Bierman described as a “domino effect,” where rising expenses in one area reduce the ability to keep up in others.

Another key issue is that much of a homeowner’s wealth is tied up in their property and not easily accessed.

“The issue here is that’s a locked-in asset,” Bierman said, noting that even households with significant home equity can still feel financially constrained on a day-to-day basis.

A broader trend beyond Alberta

While the report focuses on Alberta, similar pressures are emerging throughout Canada.

Separate survey data from Bloom Finance (3), released in October last year, suggests that many older Canadians are facing similar trade-offs. Among Canadians aged 55 and older, for example, 55% said they are concerned their retirement savings won’t be enough to maintain their lifestyle, while 76% say supporting family members is affecting their ability to save.

At the same time, many are adjusting their expectations. About 61% say they plan to cut spending or change their lifestyle, and 36% expect to take on part-time work in retirement due to rising costs.

Despite the growing pressure faced by homeowners, only 21% say they are considering downsizing or alternative living arrangements.

Fixed incomes and difficult choices

The report from the University of Calgary stresses that housing costs do not end when the mortgage is paid off, and for many seniors that reality is becoming more pronounced.

Larry Mathieson, Executive Director of Unison, told CTV News that the organization regularly sees older Canadians struggling with the ongoing cost of homeownership.

“Even a house that is fully paid for is still a big expense,” said Mathieson.