More than 50 per cent of residents in the GTA would consider moving to a more affordable city if they were able to find a job or work remotely, according to a new poll.
Real estate company Royal LePage conducted a survey identifying 15 of the most affordable cities based on one’s income needed for a monthly mortgage payment, the provincial median total household income date and city-level home price data for 2024.
“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,” the company said.
The survey used the Leger Opinion online panel to ask 900 Canadian residents over the age of 18 living in the country’s three largest urban centres: the greater regions of Toronto, Montreal and Vancouver. The survey was completed between May 13-16,t 2024. For comparative purposes, the survey has a margin of error of plus or minus three per cent, 19 times out of 20.
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Thunder Bay came out on top as the most affordable city in the country where 22.2 per cent of a household’s monthly income is required to service a mortgage payment. In second place was Saint John with 25.1 per cent and in third place was Red Deer with 25.7 per cent.
“…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,” Royal LePage Real Estate Services Ltd. COO Karen Yolevski said in a statement.
“Compared to existing homeowners who have already set down roots, we know that renters are more likely to move to be able to afford a home. This flexibility is supported by the post-pandemic permanence of remote work opportunities, which continues to allow workers in many sectors to seek out housing that is within their budget, without worrying about proximity to their office,” Yolevski added.
According to the survey, about 57 per cent of respondents overall said they would consider relocating to a more affordable city for a lower cost of living in order to buy a property. Meanwhile, 41 per cent say they would like to be closer to nature and in a less populated area. Furthermore, 40 per cent want a break from the hustle and bustle of city life and prefer a relaxed lifestyle.
When broken down regionally, 54 per cent of respondents in the Greater Montreal Area would consider relocating to one of the most affordable cities, along with 51 per cent in the GTA and 45 per cent in Greater Vancouver.
The top choice for GTA respondents was Edmonton (19%), followed by Thunder Bay (15%) and St. John’s (14%).
Among the 15 most affordable cities listed, two of which were in Alberta. In addition to Red Deer, Edmonton ranked fifth on the list with 28.9 per cent of a household’s monthly income required to service a mortgage payment.
Royal LePage Noralta Real Estate Associate Broker Ed Lastiwka says in Edmonton, a budget of $500,000 can stretch further for a Canadian and get them a family-sized home with their desired amenities.
“As Canadians continue to seek out an escape from congestion and seven-figure average home prices, Edmonton will be top of mind for many homebuyers willing to relocate. With approximately 100,000 people projected to move to the city within the next few years, home prices are expected to increase, yet remain relatively affordable,” Lastiwka said.
He adds that the majority of residents coming to Edmonton are from Ontario and British Columbia and that includes both young families and those looking for a lower cost of living during retirement.
Yolevski and Lastiwka say interprovincial migration has been an ongoing trend since before the COVID-19 pandemic but when the pandemic occurred, the trend accelerated as many residents took advantage of the affordable housing options.
