Top Canadian Real Estate Markets for Climate-Conscious Buyers

Does climate change affect your home-buying decisions? If so, you are not alone, according to a recent report. This past spring, BMO released the results of a study that found climate change is impacting how we engage in the Canadian real estate market. The bank’s report discovered that more than one-third (39 per cent) of Canadians say climate-related factors, such as heatwaves, floods, and wildfires, will impact their decision on where to live in the next five years.

The number is higher for younger Canadians: 49 per cent for millennial homebuyers (born between 1981 and 1996) and 54 per cent for Generation Z Canadians (born between 1997 and 2012).

The same report also identified pent-up demand, refinancing, and the cost of homeownership as some of the biggest factors that influence Canadians’ home-buying decisions.

Meanwhile, these environmental concerns might make sense based on growing home insurance costs. A recent report by the Insurance Bureau of Canada found that 10 per cent of all homes in Canada are exposed to flood risk but do not possess the necessary flood insurance. It is estimated that the typical flooded basement costs about $43,000 to repair.

Additionally, findings by the Intact Centre on Climate Adaptation showed that insured losses have exceeded $2 billion per year since 2008. Between 1983 and 2008, insured losses averaged about $456 million a year.

Of course, the effects of climate change might be felt differently nationwide, says Steven Harris, an insurance broker and expert at LowestRates.ca. Ontario, for example, might witness greater storm severity. Alberta, as another instance, might witness increased wildfires.

“The increasing severity of storms, wildfires and other natural disasters is driving up claims costs for the home insurance industry across the country,” Harris said in an interview with Global News. “This is compounded by inflation and the increase in rebuilding and replacement costs, which in turn is driving up home insurance premium prices for many consumers.”

So, for prospective homeowners who are climate-conscious, where are the best places to live in Canada? RE/MAX put together a list of top neighbourhoods for climate-conscious households as part of its 2024 Liveability Report.

Top Canadian Real Estate Markets for Climate-Conscious Homebuyers

Here are the best neighbourhoods for the climate-conscious buyer in today’s Canadian real estate market:

Toronto, Ontario

It is said that Toronto is a city within a park. In addition to the various green spaces across North America’s fourth-largest city, many amenities are quite accessible for the typical household. Rather than relying on your automobile for everything, your daily necessities are a few minutes away by foot in several Toronto neighbourhoods. The best neighbourhoods for climate-conscious homebuyers:

• Bay Street Corridor
• Church & Wellesley
• Grange Park
• Old Town

Vancouver, British Columbia

Like Toronto, the city of Vancouver has plenty of nearby amenities. This improves the quality of living in Vancouver, especially when you are mindful of your environmental impact. When you do not need to depend so much on a car, you can certainly trim your carbon footprint. Additionally, Vancouver also shares lots of green spaces throughout one of Canada’s largest cities. Specifically, these neighbourhoods are terrific for climate-conscious households:

• Central Business District
• Chinatown
• Gastown
• Yaletown

Still, it does not mean Vancouver is immune to climate concerns, especially as wildfires dominate headlines.

“According to RE/MAX brokers and agents based in BC, much in line with the Leger data, affordability ranked as the top liveability criteria among homebuyers, followed by accessibility and walkability, access to amenities/downtown and greenspace. Pollution, wildfires and natural disasters were also listed as top liveability concerns for buyers in Vancouver, Kelowna and Victoria,” the Liveability report stated.

Ottawa, Ontario

Ottawa’s neighbourhoods are fantastic places for the climate-conscious individual. You have the Rideau Canal as a beautiful natural space. The University of Ottawa has resulted in an abundance of amenities. With downtown shopping at Rideau Centre and a well-serviced public transit system, there are plenty of reasons to present the case that Ottawa is one of the best climate-friendly destinations in the country. The top climate-conscious neighbourhood in the Ottawa real estate market?

• Centretown

Montreal, Quebec

Finally, there is Montreal, Quebec. It can still claim to be one of the most beautiful cities in the country. What’s more, for families concerned about the climate, Montreal is a top destination for maintaining a climate-conscious lifestyle. But what would be the prime neighbourhood for living a green lifestyle? There is one:

• Milton-Parc

Green Living Is Liveability

To find a single-family home or a condominium suite in the Canadian real estate market does not mean you need to abandon your objective of maintaining an environmentally friendly lifestyle. As the RE/MAX Liveability Report highlighted, the country is rich in green spaces that are suitable for families, even when the climate is not at the top of their liveability factors.