Royal LePage data shows urban residents increasingly treat relocation as a housing strategy
Despite modest price corrections in Toronto and Vancouver, the dream of homeownership in Canada's priciest markets remains out of reach for a significant share of residents, and many are looking elsewhere.
A new survey from Royal LePage finds that 51% of people living in the greater regions of Toronto, Montreal and Vancouver would consider buying a home in one of Canada's 15 most affordable cities, provided they could find work locally or do their jobs remotely.
The data, gathered by research firm Burson, points to a fundamental shift in how Canadians are approaching the housing question.
"Home prices in Canada's largest cities have moderated over the past couple of years, but for many buyers, the math still doesn't work," said Phil Soper, president and CEO of Royal LePage. "As barriers to entry remain high in the country's most expensive urban centres, relocating to a more affordable city is becoming less of a last resort and more of a deliberate strategy. Aspiring homeowners who cannot secure a foothold in these markets are seriously weighing their options, and renters, unburdened by existing roots, are more likely to make that move than established homeowners."
Affordability rankings
Lethbridge, Alberta now leads Royal LePage's ranking of the most affordable Canadian cities, with mortgage payments requiring just 18.9% of a household's monthly income.
Saint John follows in second place, displacing Thunder Bay, which had held the top spot in 2024 and now sits third. Red Deer and Regina round out the top five, with income requirements for mortgage servicing no higher than 25%.
The broader picture is one of widespread improvement. Of 62 cities analyzed, 61 recorded a better affordability reading between 2024 and 2026, with the sharpest gains concentrated in higher-priced markets.
West Vancouver, Richmond, Markham, North Vancouver and Milton saw the largest reductions in the share of income needed to cover monthly mortgage costs. Quebec City was the sole exception, with the required income rising 1.6% over the same period, reflecting eight consecutive quarters of year-over-year price gains.
Who is most likely to move?
Renters show a greater appetite for relocation than owners, with 52% saying they would consider buying in one of the 15 most affordable cities.
The generational divide is even more pronounced. Three-quarters of Gen Z respondents (77%) say they would make the move for more affordable housing, compared with 56% of Millennials, 51% of Gen X and 34% of Baby Boomers.
Among the motivations cited, lower cost of living leads at 55%, followed by the appeal of a slower pace of life (42%) and proximity to nature in less populated areas (41%). Respondents could select more than one answer.
Where Canadians want to go
Greater Toronto Area respondents, where 55% would consider relocating, Edmonton tops the list at 16%, followed by Thunder Bay at 15%, and both Charlottetown and Windsor-Essex at 14%.
In the Greater Montreal Area, where 48% would consider a move, Sherbrooke leads convincingly at 29%, ahead of Trois-Rivières at 25%. Greater Vancouver, despite being the country's most expensive market, showed the lowest relocation intent at 46%, with Edmonton again the top pick at 18%, followed by St. John's at 12%.
Soper cautioned that intention and action are not the same thing.
"Canadians are remarkably mobile in theory, but less so in practice," he said. "Many people dream about relocating to a more affordable city or province, yet the number that actually relocate is smaller. Career opportunities, family obligations and established social networks are powerful forces. Still, as housing affordability challenges persist in the country's largest urban centres, more buyers are widening their search and seriously evaluating markets they may never have considered just a few years ago."
He also noted a structural change that complicates the calculus for younger buyers in particular. "The remote work era gave buyers the freedom to live anywhere while earning a competitive wage. As more workers return to the office, that freedom is becoming harder to come by."
A narrowing gap
Soper pointed to a compression in the price gap between major metros and mid-sized cities as a trend that could eventually reduce the financial case for moving.
"During the pandemic boom, the gap between Canada's most expensive markets and mid-sized cities widened dramatically. Since then, the reverse has occurred. Home values in Toronto and Vancouver have softened while cities such as Ottawa, Montreal and Regina have held their ground or continued to appreciate," he said.
He added that the result is a narrower pricing spread.
“For many Canadians, the question is no longer simply whether they can afford a home, but where they can achieve the best balance of affordability, career opportunity and quality of life,” he said. “If this trend continues, the financial incentive to relocate will diminish, and we can expect fewer households to seriously consider moving solely in pursuit of lower housing costs."
