Half of residents in Canada’s largest urban centres would move for more affordable real estate

Credit to Author: Ramya Ramanathan| Date: Fri, 31 May 2024 12:39:12 +0000

According to a new Royal LePage survey of Canadians living in the greater regions of Toronto, Montreal and Vancouver, 50% of respondents would consider buying a property in one of Canada’s more affordable cities if they could find a job or work remotely.

The online poll, which surveyed 900 Canadians aged 18 and older living in the country’s three largest urban centres, found that 60 per cent of renters and 45 per cent of current homeowners in these areas would consider relocating.

In addition to housing affordability, other reasons expressed for the interest in relocating were access to a lower cost of living, being closer to nature and living in a less populated area and a desire for a more relaxed pace of life.

“It’s clear that lifestyle is an important factor in Canadians’ decisions about where to buy a home,” said Karen Yolevski, COO, Royal LePage Real Estate Services Ltd.

“Unsurprisingly, in addition to lower home prices, some Canadians who are contemplating a move to a more affordable city are also seeking reduced everyday expenses, and a break from the hustle and bustle of urban centres. This is a trend that began prior to the pandemic and was accelerated during the real estate boom of 2020 and 2021, when many homebuyers relocated to smaller communities where they could safely social distance whilst enjoying greater privacy, more living space and better access to the outdoors.”

According to the survey, Edmonton is the top-ranking choice among respondents in the Greater Toronto Area (19%) and Greater Vancouver (19%). Quebec City is the most popular relocation destination among residents of the Greater Montreal Area; 29 per cent of respondents say they would consider buying a home in Quebec City if they were able to find a job or work remotely.

Most affordable cities

Royal LePage identified the 15 most affordable cities based on the percentage of income required to service a monthly mortgage payment, using provincial median total household income data and city-level aggregate home price data. The mortgage calculation is based on a three-year fixed-term loan at 5.71 per cent, amortized over 25 years with a 20 per cent down payment.

Thunder Bay tops the list of most affordable cities in Canada where 22.2 per cent of a household’s monthly income would be required to service a mortgage payment; Saint John, Red Deer, Trois-Rivières and Edmonton round out the top five, where between 25.1 and 28.9 per cent of a household’s monthly income is needed to service a mortgage payment.

Access the full report here.

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