Canadians rethink their priorities in the housing market
Canadians' priorities when it comes to homebuying have undergone big changes in the aftermath of recent crises, with new research showing a shift in what matters most to those entering the real estate market.
The 2024 Liveability Report by RE/MAX revealed that safety, the age of homes, and proximity to work have taken on new importance for many prospective buyers.
“The housing industry has witnessed incredible peaks and valleys in recent years,” the report read. “Sales activity exploded across the country, including in rural communities and in the middle of nowhere. Home prices reached all-time highs, even in places where there was little attention in previous years. Mortgage rates tanked, soared, and now moderated. Suffice it to say, a lot has happened.”
Safety has emerged as a top priority, with 34% of Canadians now citing neighbourhood safety as a crucial factor in choosing where to live. This marks a change from 2020, when 37% of respondents prioritized "easily walkable" neighbourhoods above all else.
Another shift is the growing preference for newer homes. Nearly a quarter of Canadians (23%) now consider the age of homes in their neighbourhood to be a crucial factor, surpassing the previous priority of low-density neighbourhoods.
Interestingly, the importance of living close to work has decreased. In 2020, 34% of homebuyers prioritized proximity to their workplace, but by 2024, this figure had dropped to 25%. Similarly, the emphasis on walkability has declined from 37% in 2020 to 20% in 2024.
These changes may be linked to the widespread adoption of remote work, allowing more flexibility in where people choose to live.
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Despite these shifts, many Canadians remain committed to their neighbourhood preferences. The report found that 56% of Canadians would not compromise on their livability needs, even if it meant delaying homeownership or settling for a smaller home. This determination suggests that while financial factors are important, the quality of life in a chosen neighbourhood remains paramount.
Looking ahead, 55% of Canadians believe that the quality of life in their neighbourhoods will remain stable over the next three to five years, while 24% expect it to improve, and 15% fear it will decline.
When it comes to navigating the homebuying process, the report found that half of Canadians rely on their real estate agent as their primary source of advice. Other sources of information include online searches (46%), independent research (42%), and word-of-mouth (38%).
Christopher Alexander, president of RE/MAX Canada, advised prospective homebuyers to be prepared for some compromises.
“When searching for a home, homebuyers may need to make certain concessions to their personal liveability criteria to get the most of what they deem important in a neighbourhood, in addition to what they can purchase within their means,” Alexander said in the report.
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