With this prolonged 2020 pandemic, most economists were anticipating adverse effects on Canadian real estate market including for 2021 but as the year is unfolding, it is rather turning out to be opposite. There is excess demand among buyers and limited supply to go around. Deflating interest rates would be partly to blame for this.
Nevertheless, here are some emerging trends we see present in the 2021 Real Estate market:
#1: People moving from major cities to smaller suburbs
COVID-19 has changed how we work, learn and play. People are realizing they don’t need to live near their office/workplaces - they have begun eyeing properties outside major cities. This move from cities to suburbs/smaller cities is expected to continue, even post-pandemic.
Industry experts were divided on where they believed people would want to live in the next five years, even once this pandemic is behind us. A significant number and multiple reports are predicting that outlook has already changed, and people are finding more value in Suburban housing. However, immigration is expected to maintain urban population growth in Greater Toronto area.
According to the report, the Conference Board of Canada sees people leaving Canada’s biggest urban centres – Toronto and Montreal – over the next three years, while international migration is expected to maintain urban population growth. The Government of Canada has already announced a commitment to increase immigration to 400,000 a year over the next three years.
#2: Strong single-family demand expected to continue
Older millennials are having a huge influence on single-family housing demand — a trend seen over the course of 2020 and one that is expected to continue this year. Due to low-interest rates and more affordable pricing in suburban areas, millennials have begun transitioning to townhouses, semi's and detached homes outside of the downtown core that accommodates the growth of their families and their need for more personal & work space. This is creating abonormal compeition between buyers to acquire freeholds inside as well as outside urban areas. This trend is also inflating prices for residential zoned vacant lands, which many are acquiring to built their own custom homes.
#3: The desire for living space, quality and flexibility
In March 2020, the move to remote work happened pretty much overnight. Within days, workers found themselves sharing cramped quarters with family members while still trying to do complex tasks requiring quiet and focus. Given that working from home is a long-term reality for many, people want larger living spaces with separate, quiet areas to work and study. People want more outdoor space as well.
In condos, look for developers to start offering common spaces to work, videoconferencing rooms, dedicated areas for parcel and grocery deliveries, improved amenities and tools to create more connected communities. With many of us working and learning from home, we will continue finding ways to establish individual spaces to plan, hold online meetings and concentrate on projects.
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