Canadians Look to Affordable Cities

Nearly half of residents in Canada’s largest metropolitan areas are considering a move to more affordable communities, according to a recent survey. The findings show that 55 per cent of respondents in the Greater Toronto Area, 48 per cent in the Greater Montreal Area and 46 per cent in Greater Vancouver would consider relocating to one of the country’s most affordable cities if they could find local employment or continue working remotely.

The survey suggests that housing affordability remains a major concern despite recent declines in home prices across several high-cost markets. While housing costs have moderated in some regions over the past two years, many prospective buyers still find homeownership out of reach, leading them to explore opportunities in smaller and less expensive cities.

Lethbridge, Alberta, ranked as Canada’s most affordable city, with households requiring just 18.9 per cent of their monthly income to cover mortgage payments. Saint John, New Brunswick, placed second, followed by Thunder Bay, Ontario. Red Deer, Alberta, and Regina, Saskatchewan, rounded out the top five, with each city requiring no more than a quarter of household income to service a mortgage.

Affordability improved in 61 of the 62 Canadian cities analyzed between 2024 and 2026. Some of the largest gains were recorded in higher-priced markets such as West Vancouver, Richmond, Markham, North Vancouver and Milton, where the share of income needed for mortgage payments declined significantly. In contrast, affordability gains were more modest in cities such as Red Deer, Trois-Rivières, Thunder Bay and Sherbrooke. Quebec City was the only market where affordability deteriorated, as strong home-price growth pushed ownership costs higher.

Younger Canadians were the most open to relocating for a lower cost of living. More than three-quarters of Generation Z respondents said they would consider moving, compared with 56 per cent of millennials, 51 per cent of Generation X respondents and 34 per cent of baby boomers. Lower living costs were the most commonly cited reason for considering a move, followed by a slower pace of life and the desire to live closer to nature. Among respondents from the Montreal area, Sherbrooke emerged as the most popular destination, while Edmonton was the top choice among respondents in both the Toronto and Vancouver regions.