Alright, folks, let's talk about the wild ride that's been the Canadian real estate market since the pandemic barged in. It's been like watching a rollercoaster, with house prices shooting up faster than you can say "mortgage.”
So, what's been driving this crazy train? Well, first off, remote work became the cool new thing. Suddenly, everyone wanted more space, a backyard, maybe a home office. And who can blame them? We went on that path like most Canadians during pandemic. (here is a post about lifestyles in Canada). Cue the rush to the suburbs and rural areas, where properties started flying off the shelves like hotcakes. Naturally, when demand shoots up like that, prices follow suit.
The major cities, like Vancouver and Toronto, skyrocketed home prices and made it almost impossible to live in these 2 cities. Montreal is getting very expensive too and many people decided to move to those other areas where affordability is still a word in use. (i.e: provinces such as Alberta, Nova Scotia or Manitoba).
But wait, there's more! Central banks decided to throw in historically low mortgage rates to spice things up. Suddenly, buying a house seemed more doable than ever. When borrowing costs drop, people are like, "Hey, why not? Let's get that dream house now!” For many, especially first-time buyers and folks with average incomes, the dream of owning a home feels like it's slipping away. Affordability is becoming a real headache.
And what this meant for renters? This housing crisis in Canada became surreal, rent kept going up, at the point that to rent a studio (no bedroom) apartment in downtown Toronto, you can expect to spend nothing less than $2000/ month + utilities. Affordability is a real issue in Canada.
Not to scare anyone here, but this is one of the most if not the most important topics to consider when moving abroad. The housing market and cost of rent can take a big portion of your budget.
Before moving, it's crucial to plan and organize your finances. To get a sense of the real estate market, consider using resources like Realtor.ca. This website offers a wide range of properties for rent or purchase across the country. Additionally, there are other local websites that can help you research the real estate market specifically in the city you plan to live in.
The decision about which city to live in depends on several factors. These include your job and industry, the schools for you or your children, and the lifestyle that suits your needs. Are you more of an urban individual who prefers having everything nearby, or do you enjoy suburban life in a large house and don't mind driving everywhere? You might even prefer the countryside, with its farm vibe and natural surroundings.
To recap on the important things to plan before choosing the city you will live:
Make sure you research the city you’re going and the housing costs. Go to real estate websites and see what they have available and what are the prices.
Make a list of the cost of all overheads (i.e: mortgage or rent, utilities, etc). Use numbeo website to help you understand the living costs and compare to your reality vs what to expect in the new city.
Get to know your job industry, the school options if you need that for you or if you have kids. And make sure to give you the proper time to research these options before choosing the city to live.
Remember to have fun during this process. It can become stressful at times, so be sure to enjoy each step of the journey. It's worth it!
Ciao!
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