Demand for housing in Canada continues to rise in 2022, with small markets gaining popularity among prospective renters and homeowners alike. Before COVID-19 reared its head, places like Hamilton and Kitchener were already attracting house-hunters in seek of affordable properties within a reasonable proximity to the city. Since then, smaller communities further afield have been emerging as popular options for reasons beyond affordability.
According to RE/MAX Canada, small markets are attracting new residents primarily for their “quality of life” factors which include more green space and access to the great outdoors. Entitled, 2022 Small Markets Report, it looks at the results of a Leger survey analyzing home sales and price trends among Canada’s fastest-growing small markets, defined by RE/MAX as those with the highest population growth rates in 2021 and having a population of less than 440,000. From Chilliwack B.C, to Stratford, ON, the data shows that housing and rent prices in these popular small markets are continuing to rise due to low inventory and growing demand. In fact, RE/MAX anticipates that the average residential price growth for these regions will increase between three and 20 per cent by the end of 2022. Unsurprisingly, some of the markets have already experienced significant year-over-year price appreciation in the range of 17 to 38 per cent.
“Liveability is all about quality of life, and as we all work toward getting back to enjoying the things we love the most about our communities, it’s not surprising that it ranks so highly in importance for Canadians – especially now,” said Christopher Alexander, President, RE/MAX Canada. “Despite the fact that the national housing market still has challenges to overcome, smaller communities are viable options for Canadian homebuyers looking for the right balance between liveability and affordability. The increase anticipated for home prices for the remainder of 2022 by our network of brokers and agents is a good indicator of the appeal of these communities.”
However, the desire for liveable communities plays both ways, with more than half of small market residents voicing concern that the distinct liveability qualities of their town (i.e. its charm) may be eroded as a result of rising demand from buyers. Many (43 per cent) also said they share the same anxiety about rising prices, feeling that they could potentially be priced out of their community if the small-market trend persists. According to the survey, nearly a quarter of Canadians moved from a larger to a smaller market during the pandemic, with the majority (85 per cent) stating they were happy about their decision. Half of those surveyed said moving to a small town or community has helped improve their mental health.
“We’ve seen a greater influx of buyers moving to smaller markets over the past two years, a trend that’s prompted some concern among existing residents. However, the diversity of new homebuyers can be a positive thing for local communities,” said Elton Ash, Executive Vice President, RE/MAX Canada. “The recent notable growth of Canada’s small markets makes it an opportune time for municipal and provincial governments to focus on alleviating these concerns through measures that address affordability and housing supply, but also aim to revitalize and improve community liveability that has made these regions the preferred choice of many Canadians.”
The keen interest in small towns doesn’t seem to be waning, even as pandemic restrictions ease and more Canadians are being ushered back to the old office setting. Survey says, 11 per cent of respondents would rather look for another job than be forced to move back to the city.
And homeowners aren’t the only residents enjoying the small-town lifestyle vibes; renters are settling into smaller communities too. Proving the trend is real, Skyline Living recently opened “Twamley Manor” in December 2021, providing an attractive option for Torontonians escaping the urban grind.
“We aren’t surprised by the far-reaching interest in these brand-new rental apartments,” said BJ Santavy, Vice President, Skyline Living. “The location is perfectly situated just far enough away from urban sprawl to capture all the friendly connections and social potential of coveted smaller towns in Ontario, while still offering all the modern-day necessities like groceries, restaurants, parks, and services just minutes from the front door.”
Built by Hyde Construction, the 118-unit rental complex features two four-storey residential buildings, and a separate amenity space for residents called “The Club House”. With the second building underway and expected to open later this summer, the current tenant pool includes a significant portion of residents who recently downsized and relocated from the GTA and beyond.
“Listowel is the ideal place for this new Skyline Living community with its many annual festivals, vibrant downtown, and welcoming people,” said Santavy. “Many of our early tenants mentioned that they are following their children out of the larger cities to a town that boasts more opportunities for growing families. They like that they can age in place in a new property that is geared to a mature rental lifestyle with tubs with tile and grab bars, tenant activities, and amenity spaces built for their needs.”
Sharon D’Arcey, General Manager of the North Perth Chamber of Commerce has also noticed the growing appeal of the region since the pandemic made working from home a possibililty for so many. “Having Skyline Living choose our area for this apartment complex is just what we needed,” she said. “People tell us we are the centrally located on the map – just 45 minutes from anything and everything. Out of the city, but close enough to everything else. A small town with enough of the amenities that people are looking for.”
Visit www.twamleymanor.ca for more info.
