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Canada’s demographic makeup is changing as the senior population gradually grows. According to Statistics Canada, over 861,000 people aged 85 and older were recorded in the 2021 Census, more than double the number from the 2001 Census. Additionally, over the next 25 years, by 2046, the population aged 85 and older could increase to nearly 2.5 million, potentially tripling.

With the growth of the elderly population, there is a rising need for housing and support services to meet this demographic change. While the Canadian government is taking steps to build affordable housing for seniors (and other vulnerable groups), such as the National Housing Strategy, the role of private investors and developers in ensuring senior housing supply meets future demand is significant.

Assessing the Landscape

Earlier this year, Cushman & Wakefield, a leading global real estate services firm, published an industry overview report on senior housing in Canada. As outlined in the report, the socio-economic backdrop of a rapidly growing senior population and limited senior housing availability creates an advantageous environment for operators. As noted in the report, over the next 10 years, approximately 200,000 new seniors housing suites will be required to maintain market equilibrium. For context, fewer than 73,000 units were built during the past decade. Furthermore, the current rate of construction starts is not keeping pace with the rate of required replacement. It is unlikely that the rate of supply growth will keep pace with demand, leading to a tighter rental market. As such, current operators within the space are poised to benefit from the prevailing imbalance.      

Gaining Exposure to Senior Living Operators via ETFs

Many Canadians recognize Chartwell Retirement Residences (Ticker: CSG.UN) for its dominance in the senior living market. However, other publicly traded senior living operators, such as Sienna Senior Living (Ticker: SIA.TO) and Extendicare (Ticker: EXE), are also well-positioned to benefit from the market trends mentioned earlier.

As recently as last month, Sienna Senior Living announced the acquisition of the Credit River Retirement Residence for $60.2 million, a 133-suite retirement residence consisting of 84 independent living, 25 assisted living, and 24 memory care units.  

As illustrated in the following charts, the performance of these senior living operators over the last year has been strong.

For investors interested in gaining exposure to these operators via ETFs, the Fidelity Canadian High Dividend ETF (Ticker: FCCD) and the Middlefield Real Estate Dividend ETF (Ticker: MREL) facilitate this.

FCCD invests primarily in dividend-paying equity securities of Canadian companies, replicating the performance of the Fidelity Canada Canadian High Dividend Index. The index is designed to reflect the performance of stocks of large and mid-capitalization Canadian dividend-paying companies that are expected to continue to pay and grow their dividends.

MREL is an actively managed solution that provides diversified exposure to commercial real estate companies across sectors such as industrial, data center, retail, healthcare, cell tower, office, and residential. As mentioned in the July 2025 commentary for the fund, the portfolio manager recently met with the CEOs of Chartwell and Extendicare, who expressed a positive outlook on the business environment. The commentary also notes that MREL has a healthy allocation to seniors housing, approximately 18%, within their dedicated real estate strategies. 

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.