Canadians willing to move outside of major cities for affordability

For years, Canada's housing crisis has been defined by a widening gap between incomes and home prices in the country's largest urban centres. While housing affordability has improved slightly in recent years as interest rates declined and prices softened in some markets, a new Royal LePage report claims many Canadians still see homeownership as increasingly out of reach where they live. According to a survey released Tuesday, 51 per cent of residents in the Greater Toronto Area, Greater Montreal Area and Greater Vancouver said they would consider relocating to one of Canada's 15 most affordable cities.

The report arrives at a dangerous moment in Canada's housing market. After years of rapid price growth, many of the country's most expensive markets have seen prices moderate as higher borrowing costs have reduced demand and increased inventory levels. Royal LePage found that affordability improved in 61 of Canada's 62 major housing markets between 2024 and 2026. Unfortunately, despite those improvements, many Canadians find homeownership remains unattainable in the country's largest metropolitan regions. The survey shows that while affordability may be improving statistically, the reality remains challenging, particularly for younger Canadians attempting to enter the housing market for the first time.

GTA residents ready to leave

The strongest interest in relocation came from residents of the Greater Toronto Area, where 55 per cent of respondents said they would consider moving to a more affordable city. The figure was slightly lower in the Greater Montreal Area at 48 per cent and in Greater Vancouver at 46 per cent. Younger Canadians were especially likely to express interest in relocating. The report found that members of Generation Z, as well as Millennials, are significantly more willing to move in pursuit of affordable housing than older generations. This represents a clear reflection of how disproportionate the impact of housing costs has been on younger households attempting to purchase homes.

Where do Canadians want to move?

The cities attracting the most attention varied depending on where respondents currently lived. Among Montreal-area residents, Sherbrooke emerged as the most popular destination, with 29 per cent saying they would consider purchasing a home there. Residents of both Toronto and Vancouver identified Edmonton as their preferred destination. The Alberta capital has increasingly attracted attention in recent years as one of Canada's few major cities where housing remains relatively affordable compared to local incomes. Edmonton is the only Canadian city with a population of more than 1 million that cracked the top 15 most affordable. Royal LePage's findings suggest affordability is becoming a stronger driver of migration decisions, particularly as remote work arrangements allow some Canadians greater flexibility in choosing where they live.

While the survey shows interest, the report notes that relatively few Canadians actually follow through on relocation plans. Employment opportunities remain one of the biggest barriers to moving, particularly for workers whose careers depend on specific industries or regional economies. Family connections, social networks and community ties also play major roles in keeping people where they are. For homeowners, the challenge can be even greater because relocating often involves selling an existing property, finding employment in a new community and adjusting to unfamiliar surroundings. That being said, Canadians surveyed claimed they would be more willing to move if they could find local employment or continue working remotely.

Canadian gov. trying to step up

The findings arrive as policymakers continue searching for solutions to Canada's housing affordability crisis. Federal, provincial and municipal governments have introduced numerous initiatives aimed at increasing housing supply, accelerating construction and reducing barriers to development. Mark Carney has also made it a priority of his government to build affordable houses. While those efforts may improve affordability over the long term, many buyers remain focused on more immediate options. For households struggling to purchase homes in Toronto, Vancouver or Montreal, relocating to a smaller city may appear more achievable than waiting for dramatic improvements in local housing conditions.

While houses are getting marginally more affordable, and the minimum household income to purchase a house is decreasing, experts say it isn't enough. In fact, the dip in prices has actually harmed the market. While prices dipped nearly 30 per cent this year, most Canadians still cannot afford to buy a home. With Canadians who want houses unable to afford them, the market's main target is investors. Unfortunately, few investors want to enter a market that has just seen a massive dip. While prices are too high for most Canadians, the instability is driving away richer, investment-focused buyers. What's left is a market for nobody, where houses sit for months unsold, and more Canadians continue renting.