And which city is the most affordable according to new research?
The cost of living, and especially the cost of housing, in Canada’s major urban centres could drive many out to more affordable options, according to new research.
Royal LePage commissioned a survey of residents in Toronto, Vancouver, and Montreal and found that 60% of renters and 45% of homeowners would consider a move to a more affordable alternative if they can find a job there or work remotely.
"There's an old saying in real estate, 'drive until you qualify.' As housing affordability continues to deteriorate and Canadians face increasingly higher barriers to entry when buying a home, this adage is becoming more of a reality. Many aspiring homeowners in the country's largest and priciest urban centres are seriously considering relocating to less expensive cities in order to get a foot on the property ladder," said Karen Yolevski, COO, Royal LePage Real Estate Services Ltd.
For those seriously considering relocation, Thunder Bay leads the firm’s list of the most affordable Canadian cities. Buying a home with a mortgage in the Northwestern Ontario city would require 22.2% of a household's monthly income. This is based on an aggregate price of $299,300 in Q1 2024, and a median total household income of $84,400 (2022 stats).
Also in the top five are Saint John, Red Deer, Trois-Rivières and Edmonton, where between 25.1% and 28.9% of a household's monthly income is needed to service a mortgage payment.
The top choices of where to relocate differ by current location with those in the Greater Montreal Area preferring Quebec City while those in the Greater Toronto Area and the Greater Vancouver Area put Edmonton as their first choice.
However, Yolevski said that even if survey respondents acted on relocation, Canada’s largest urban centres would continue to thrive with 40% of those who took part in the poll saying they would not move.
"Canada's largest cities have much to offer, from diverse employment opportunities, to endless entertainment options and amenities. Around the world, people continue to gravitate to major cities and the lifestyle they provide. Regardless of how many residents choose to relocate elsewhere, there will always be a strong demand for housing in the cities of Toronto, Montreal and Vancouver, both from locals and newcomers," noted Yolevski. "However, the fundamental supply-demand imbalance poses a major challenge for those attempting to access these markets, underscoring the crucial need to build more homes faster in markets of all sizes."
