Younger Canadians are Moving from Big Cities
Canada’s housing market has been impacted as a record number of young adults and their families move towards suburban areas. There are more investment opportunities in these areas, but these opportunities raise concerns, worsening the current real estate problem.
Toronto, Montreal, and Vancouver have seen the largest number of citizens move back home and looking for more job opportunities in Eastern Canada. Although this isn’t a new practice, i.e., people move to suburban cities from expensive cities all the time, but 2020 and Q1 of 2021 saw a record number of these immigrations.
From 2016 to 2019, 72,686 young adults and families immigrated to the eastern countryside, but from June 2019 to July 2020, this number saw an increase of 87,444 people. Because of this, this shift can potentially impact economic development.
Tech hubs have also followed this trend and taking roots outside major cities, especially Vancouver.
One of the biggest reasons why people are leaving is that most of these immigrants are renters. Before COVID-19, there were more job opportunities in the region than the number of residents. With everything being shut down, people not being able to make rent, and having no amenities to enjoy, immigration seemed like the logical thing to do for younger residents.
In the current real estate market, detached houses in markets like Montreal, Toronto, and Vancouver are seeing price rises by 20% to 30%.
As businesses reopen, they are actively looking for employees and, therefore, creating more job opportunities. The number of tech opportunities is also increasing, but the ultimate factor that will attract these younger families is COVID vaccines’ success.
Many builders have postponed the debut of their projects due to a lack of interest in the real estate market. However, if the vaccine is effective, it may pique the interest of a large number of investors.
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Economic Development Officer