Why Canadian Buyers Are Choosing Location Over Square Footage

In 2026, more than half of Canadian homebuyers are choosing where to live before they settle on what to buy. A survey by Ipsos for Century 21 Canada found that 55% of Canadians say they are not living in their ideal home, and the gap is not just about square footage. For the first time in over twenty years, the proportion of Canadians living in major metropolitan areas stopped rising, as population growth spread to secondary cities, suburbs, and semi-rural communities. Buyers are asking different questions now — and the first one is rarely about how many bedrooms a property has.

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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

The numbers tell a clear story. Canadians want more room — 63% say they need more space, and the ideal home averages 2,098 square feet, roughly 600 square feet larger than what people currently have. But the path to that space no longer runs through the same neighbourhoods. Hybrid work, affordability ceilings, and a sharper sense of what daily life actually feels like have turned location into the deciding factor. Here is what that shift looks like on the ground and what it means for anyone shopping for a home right now.

What the Shift From Square Footage to Lifestyle Actually Means for Buyers

That last point is worth sitting with. A home that fits your daily patterns — commute, school run, grocery access, outdoor space — holds its value differently than one that just looks good on paper. What I tend to notice is that buyers who start with location rarely regret it, even if the square footage is tighter than they originally imagined. The reverse is a lot harder to fix.

What Your Money Buys Across Canada’s Fragmented Housing Markets

In 2026, the same budget buys dramatically different things depending on where you land. Interest rates have stabilised near 2.25%, but regional supply and local economic health create wide variation in what you get for your money. The table below shows how five markets stack up.

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The range is striking. In Quebec City, a buyer with a $676,731 budget — the national average for likely buyers — can afford a detached home in a stable market with projected growth. In Victoria, that same budget barely covers a condo. The gap is not just about price. Population growth outside major cities reached its highest share in decades, meaning secondary markets are absorbing demand that used to concentrate in two or three urban centres.

What I’d do is compare what you could actually afford in each market before getting attached to any single neighbourhood. The numbers shift fast, and the market that looks expensive on the surface may offer better long-term value once you factor in property taxes, insurance, commute costs, and quality-of-life savings.

Three Mistakes Buyers Make When Chasing Location Over Size

Assuming Affordability Means the Same Thing Everywhere

Price is the top barrier to the ideal home for 59% of Canadians, according to the Ipsos survey. But “affordable” in one market means something entirely different in another. Buyers relocating from Vancouver or Toronto often arrive in Calgary — which attracted 44% of its interprovincial migrants from Ontario and 25% from British Columbia — with larger down payments and expectations that don’t match local pricing. They overpay for features they don’t need or underestimate what a smaller local budget would have bought. The fix is to reset your frame of reference to the market you are moving into, not the one you are leaving.

Ignoring the Commute Until After You Buy

Hybrid work makes longer commutes tolerable, but not all commutes are equal. A buyer who picks a suburban or semi-rural home based on square footage alone may discover that the drive to the office twice a week eats up time and money in ways they did not model. The one I see most often is buyers locking in a location without checking what the commute actually looks like at 8am on a Tuesday. Drive the route during peak hours before you sign anything. Also check transit schedules, school bus routes, and winter road maintenance — especially in markets like Halifax, where buyers are increasingly purchasing in suburban or outlying areas for lifestyle reasons.

Overlooking the Legal and Regulatory Differences Between Provinces

Moving provinces means more than a new address. Quebec operates under a civil law system, which changes how property transactions, leases, and estate planning work. British Columbia has its own property transfer tax, foreign buyer rules, and short-term rental regulations. Island properties in Victoria and Vancouver Island face unique appraisal challenges and higher insurance costs. A buyer who treats a cross-province move like a neighbourhood hop inside the same city will hit surprises. If you are relocating to a new province, work through the local rules with a real estate agent or a legal professional who knows that market. Getting a professional legal review of your purchase contract can save you from costly oversights in an unfamiliar jurisdiction.

How to Evaluate a Property for Location, Lifestyle, and Long-Term Fit

Map Your Non-Negotiables Before You Look at Listings

My first move would be to write down what daily life actually requires. Walkability to restaurants and shops matters to a growing share of buyers, according to the REMAX report. So does yard space, access to recreation, and the ability to host family. The Ipsos survey found that condition (40%) and location or neighbourhood (38%) are the top factors when choosing an ideal home. Stack your own priorities in order of importance before you open a single listing. That list will tell you which markets to focus on and which to rule out immediately.

Compare Total Holding Costs, Not Just the Purchase Price

The purchase price is only one number. Property taxes, strata fees, insurance, maintenance, and commute costs vary wildly by location. A home in North York with a median price of $782,000 may carry lower monthly costs than a similarly priced single-family home in Victoria, where older heritage properties often require specialised inspections and higher insurance premiums. Build a spreadsheet or use a notebook to track the full monthly picture for each property you seriously consider.

Visit at Different Times of Day and in Different Seasons

A neighbourhood that feels quiet and peaceful on a Sunday afternoon may be a different place on a Wednesday morning during school drop-off or when a nearby highway feeds rush-hour traffic. If you are buying in a market with harsh winters, visit in January or February. If you are looking at a waterfront property, check the flood zone maps and talk to neighbours about seasonal patterns. Lifestyle decisions are based on how a place feels day to day, not just on a sunny afternoon.

What’s Coming Next: Planning Policy and Regulatory Changes

Several provinces are revising housing policy in ways that will affect location decisions. British Columbia is tightening short-term rental rules, which could shift condo demand in tourist-heavy markets like Kelowna. Ontario is pushing for more density near transit corridors, which may change the character of suburban neighbourhoods. Quebec’s civil law framework means lease transfers and co-ownership rules differ from the rest of Canada. Buyers who track these changes can position themselves ahead of shifts rather than reacting to them after prices have moved. A property inspection checklist notebook can help you stay organised when comparing multiple homes across different markets.

Frequently Asked Questions About Buying for Location in 2026

The One Question That Will Decide Where You Buy Next

The shift happening across Canada is not about square footage versus location. It is about whether your home fits how you actually live. A 2,000-square-foot house in a neighbourhood that requires a 90-minute commute each way will feel smaller than a 1,200-square-foot condo steps from a park, a grocery store, and a coffee shop you like. The buyers who are happiest with their move in 2026 are the ones who asked themselves one question before they started shopping: what does a good day look like, and where can I live that makes that day possible?

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read How Remote Work Reshaped the Canadian Housing Market.

Sources and Further Reading

The Real Reasons Canadian Homeowners Are Selling and Downsizing — Explores the motivations behind the downsizing trend and how it connects to the location-first shift.

Is the Condo Market in Canada a Safe Investment or a Risky Bet? — A look at condo market dynamics in the context of changing buyer preferences.

Century 21 Canada / Ipsos (2026). The Great Canadian Housing Gap: 55% of Canadians Say They’re Not Living in Their Ideal Home. 🔗

Mortgage Intelligence (2026). Real Estate Highlights Across Canada: Where Should You Buy in 2026? 🔗

REMAX (2026). More Canadians Are Chasing Lifestyle, Not Just Square Footage. 🔗

Vancouver Home Search (2026). Canada’s Urban Shift Is Slowing: Why Buyers Are Rethinking Big Cities in 2026. 🔗

London Inc Magazine (2026). Relocation Buyers Canada. 🔗