Surprisingly, affordability is not the top draw
Canada’s smaller markets are magnetizing new home buyers largely because of liveability factors like green spaces and neighbourhood dynamism (40%), which are slightly overriding housing affordability (37%) as the top criteria, according to RE/MAX Canada.
In its 2022 Small Markets Report, RE/MAX also found that approximately 28% of homeowners living in larger markets would like to move to a smaller market within the next two years. RE/MAX defined a “small market” as a region with a population lower than 440,000, and “secondary markets” as an area with a population below 100,000.
“Liveability is all about quality of life, and as we all work toward getting back to enjoying the things we love the most about our communities, it’s not surprising that it ranks so highly in importance for Canadians – especially now,” said Christopher Alexander, president of RE/MAX Canada.
“Despite the fact that the national housing market still has challenges to overcome, smaller communities are viable options for Canadian homebuyers looking for the right balance between liveability and affordability.”
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During the pandemic, approximately 23% of Canadians moved from a larger market to a smaller one, with 85% reporting that they’re largely happy about the move. Approximately half (52%) of those that moved to a small town also said that their mental health had improved after their relocation.
“We’ve seen a greater influx of buyers moving to smaller markets over the past two years, a trend that’s prompted some concern among existing residents,” said Elton Ash, executive vice president of RE/MAX Canada.
More than half of small-market residents (57%) expressed fears that their locale’s liveability qualities might get eroded by rising buyer demand, while 43% are worried about being priced out of their own communities due to price growth.
However, Ash stressed that “the diversity of new home buyers can be a positive thing for local communities.”
“The recent notable growth of Canada’s small markets makes it an opportune time for municipal and provincial governments to focus on alleviating these concerns through measures that address affordability and housing supply, but also aim to revitalize and improve community liveability that has made these regions the preferred choice of many Canadians.”
