As Ontario’s housing market is getting too hot to handle, potential homebuyers are shifting their focus toward the western provinces, hoping they find something more affordable. And they are.
Residents of the GTA and other hot markets in Ontario are moving to Alberta, specifically Calgary, where the housing market is a bit more bearable, Bloomberg reports.
According to their article, realtors from the province report an unusually high number of inquiries from Ontario. Statistics Canada is here to back that up with their interprovincial migration numbers. For the first time in more than five years, Alberta led the country in interprovincial migration in the last quarter of 2021.
The benchmark price for detached houses in Calgary rose 20% in the last year and was $620,500. In comparison, Toronto’s average selling price at the same time was $1.3 million. In Metro Vancouver for the same month was $1.4 million.
Despite the government’s efforts in trying to cool down the housing market, the salaries offered in Toronto and Vancouver are not high enough to cover the cost of living, which is why immigrants are starting to look at other options.
Also, Canada’s housing affordability crisis occurred simultaneously with Alberta’s years-long recession due to depressed oil prices, which could be another reason east Canada is going west. According to the Conference Board of Canada, Alberta is supposed to lead the country’s economic growth this year, as well as the next.
Why Is Calgary Appealing?
Not only did Calgary experience growth in its tech scene, but its nature and proximity to the Rockies also seem appealing to homebuyers. The quality of life seems more inviting, and by selling their homes in the Ontario market, retirees can snatch expensive homes surrounded by nature. According to a recent survey from Royal LePage Realty, recreational properties in Alberta are now the most expensive in Canada, outstripping even B.C. Single-family home prices in Canmore, a popular mountain hamlet 80 kilometres west of Calgary, have risen 33% year over year to $1.36 million.
But, since they aren’t putting a mortgage on the property, the higher interest rates don’t seem to bother the retirees and there’s virtually nothing stopping them from taking their money and moving west.
If the pandemic has taught us something, it’s the importance of a backyard and walks, not being trapped in an apartment.
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Kelly Wilson
Kelly Wilson, a top national mortgage producer, has dedicated 19 years to customizing financial solutions for clients across Canada. Her strategic approach has facilitated over $1 billion in mortgage funding. Starting her real estate investment journey at 21, she now holds $11 million in assets. Kelly's mission is empowering clients to achieve financial freedom and sustainable wealth.
