How do Canadians Define Liveability in Today’s Housing Market?

Should prospective homebuyers only concentrate on the asking price of a home for sale, or should they consider a whole range of factors? The general viewpoint in today’s housing market is that Canadians understand the benefits of home ownership, but many have been deterred in recent years because of how high prices are in many real estate markets across the country. Not to mention elevated mortgage rates.

Indeed, if a household were to come across a single-family home or a townhouse that fit their budget but failed to meet their other criteria, should they submit an offer? This has become the $700,000 – the average sales price for a home in the Canadian real estate market – question for many families.

But while affordability is a critical component in the journey to home ownership, a new report identified other crucial liveability factors to purchasing a detached house, a townhome, or a condo.

Understanding Neighbourhoods in Canada

Do Canadians love their neighbourhoods? Absolutely, with 86 per cent saying they like the quality of life and liveability they provide to local residents. That is according to a new RE/MAX 2024 Liveability Report, which examined neighbourhood qualities that matter to Canadians and what attributes are important to households living in the community.

Housing affordability still ranked high for homeowners and homebuyers, as 44 per cent reported that affordability was the chief liveability factor. Interestingly enough, this is down by three per cent compared to the 2020 survey results.

Indeed, according to the study, there are other components essential to maintaining high-quality living standards that go beyond the price tag.

Neighbourhood safety was the second most important factor for families when selecting a place to live. This was followed by walkability (six per cent) and the age of the home (six per cent). The proximity to work was another important liveability factor, though its ranking declined from the 2020 report.

Experts say that some of the most liveable neighbourhoods are concentrated in areas that were typically developed before automobiles became ubiquitous, meaning they were designed to be more walkable. At the same time, urban centres in the Prairies are more affordable but might lack that same walkability trait.

Ultimately, when homebuyers are navigating the housing market, they need to prioritize what they want and then possibly make concessions on their liveability choices, says Christopher Alexander, the president of RE/MAX Canada.

“Homebuyers may need to make concessions to their liveability criteria when shopping the market, especially when faced with limited inventory and high prices,” he said. “Finding the right home is about checking off as many boxes on the ‘must have’ list as possible while staying within budget, since that’s one factor with limited wiggle room.”

This applies to all buyers, especially as affordability continues to be the top consideration, Alexander added.

“That’s why working with a professional realtor who can help navigate the market for what’s realistic and advise on what neighbourhoods best suit the needs of the buyer is key,” he said. “They also act as a local guide, shedding light on the ins and outs of different neighbourhoods and how they fit within one’s goals.”

That said, the survey found that more than half (56 per cent) of Canadians would not sacrifice their neighbourhood liveability criteria, even if it meant they could enter the real estate market or upgrade to a larger home.

Where are these liveable areas anyway?

Liveability Is Subjective

Of course, everyone possesses their own definition of what is or is not a liveable neighbourhood, notes Vincent Charles-Hodder, the co-founder and CEO of Local Logic.

Luckily, Canada is a vast, diverse, and beautiful nation with plenty to offer for everyone.

Halifax, Nova Scotia, for example, has many attributes that can appeal to various families. The Atlantic Canada city enjoys an abundance of green space and provides safe neighbourhoods. Residents report feeling a sense of belonging, peace of mind, and strong social connections.

Toronto, North America’s fourth-largest city, maintains a wide array of communities that combine green spaces, public transit, homes with character, and walkability. Regina, Saskatchewan, on the other hand, appeals to households that desire affordable homes, exceptional access to daycares and schools, and readily available public transit.

“Finding a home is an incredibly personal process,” said Charles-Hodder. “Everyone’s definition of ‘liveability’ is different.”

So, if you desire geographical diversity, Toronto and Ottawa should be at the top of the list. Edmonton could be your primary option if you are a first-time homebuyer or a move-up buyer. Are you a city lover with no kids? Winnipeg has a long list of neighbourhoods best suited for individuals with this lifestyle.

Canada is one of the world’s largest nations, so it is unsurprising to find a long list of liveable neighbourhoods from British Columbia to Nova Scotia. The challenge is to identify these neighbourhoods and determine, with a checklist, if they are right for you, your family, and your pocketbook.