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.

Disclosure: Some links on this page are affiliate links. If you make a purchase through them, BritWealth may earn a commission at no extra cost to you. We only include products and services that are relevant to the topic.

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

55%
Canadians not living in their ideal home
c21.ca

63%
Want more space in their next home
c21.ca

2,098 sq ft
Average ideal home size for Canadian buyers
c21.ca

$676,731
Average budget of likely buyers in the next year
c21.ca

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

Location Is the New Floor Plan
Buyers are choosing walkable neighbourhoods, waterfront access, and proximity to amenities over raw square footage. The REMAX 2026 report identifies lifestyle and long-term livability as the primary drivers in purchase decisions.

Hybrid Work Unlocked the Map
Flexible schedules mean buyers can live farther from their office without losing their job. That opened up entire regions — Calgary, Atlantic Canada, Southwestern Ontario — that were previously off-limits to commuters.

Secondary Markets Are Carrying Momentum
Population growth outside major cities hit its highest share in decades. Communities like Kelowna, Halifax suburbs, and Quebec City are seeing sustained demand from buyers priced out of Toronto and Vancouver.

Lifestyle Fit Beats Price Appreciation
80% of homeowners report loving their home and it being perfect for them, compared to just 50% of renters. The satisfaction gap suggests that ownership alone isn’t enough — the right location is what makes a home work long-term.

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.

Lifestyle migration
The decision to move to a different city, suburb, or region primarily to improve daily quality of life — through walkability, outdoor access, space, lower costs, or community fit — rather than for a job or family obligation. This trend is accelerating across Canada as hybrid work and affordability pressures reshape buyer priorities.

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.

→ Scroll right to see all columns

Source: Mortgage Intelligence 2026 report
Market Benchmark Price / Median Market Condition
Calgary, AB Balanced, ~1% appreciation High net migration, energy sector strength, record housing starts
Quebec City, QC 12% projected price increase in 2026 Most affordable major market, strong local economy
Victoria, BC ~$1.3M for single-family homes Stable coastal market, heritage property challenges
North York, ON ~$782,000 median, 54% condo mix ~6 months inventory, accessible GTA alternative
Kelowna, BC Shifting to buyer’s market Lifestyle destination, tourism-linked condo volatility

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.

The Real Cost Gap
A buyer moving from Toronto to Calgary can take a budget that would buy a 700-square-foot condo in the GTA and get a 1,600-square-foot detached home with a yard — often with cash left over for renovations. That difference in space-per-dollar is the single biggest factor driving relocation decisions across the country.

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

Is it smarter to buy a smaller home in a great location or a larger home farther out? ▾
That depends on your daily patterns. If you work from home most days and value outdoor space, farther out often works. If you commute regularly or need walkable amenities, a smaller home in a central location tends to hold its value better and improve daily satisfaction.
How do relocation buyers affect local prices in smaller markets? ▾
Relocation buyers often bring larger down payments from higher-cost cities, which can push up prices in the most desirable neighbourhoods of secondary markets. Calgary and Halifax have both seen this effect in specific price ranges.
What should I check before moving to a province with different property laws? ▾
Review property transfer taxes, land registration rules, tenancy laws, and insurance requirements. Quebec’s civil law system, for example, has different rules for co-ownership and estate planning than common-law provinces.
Are buyers really leaving big cities in Canada, or is it just a trend? ▾
Growth is spreading out, not reversing. Major cities are still economic anchors, but population growth outside them reached its highest share in decades. It is more of a redistribution than an exodus.
How much space do Canadian buyers actually want? ▾
The ideal home averages 2,098 square feet, about 600 square feet larger than what people currently have. 59% prefer a single detached house, but only 51% currently live in one.
What is the biggest financial risk of buying for lifestyle instead of investment? ▾
Overpaying for amenities you do not use. A waterfront view or proximity to ski hills adds value only if you actually use them. Check your lifestyle honestly before paying a premium for location features that may not matter to your daily routine.

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. 🔗

Share this

Facebook
Twitter
LinkedIn
Email

Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted

Disclaimer

The content published on BritWealth.com is provided for general informational and educational purposes only and should not be considered financial, legal, insurance, tax, investment, or professional advice. You should always carry out your own research or seek independent professional guidance before making financial or business decisions.

Some content on this website may contain affiliate links. This means BritWealth.com may earn a commission if you click through and make a purchase, at no additional cost to you. As an Amazon Associate, BritWealth earns from qualifying purchases.

While we make reasonable efforts to keep information accurate and up to date, BritWealth.com makes no representations or warranties, express or implied, regarding the completeness, accuracy, reliability, suitability, or availability of any content on this website.

Any reliance you place on information found on this site is strictly at your own risk. BritWealth.com will not be liable for any loss, damage, or consequences arising from the use of this website or reliance on its content.

By using this website, you acknowledge and agree to this disclaimer and our terms of use.

Table of Contents

Share This

On Trend

Readers'
Top Picks

Why Canadian Buyers Are Waiting Longer to Make an Offer
Home Buying

Why Canadian Buyers Are Waiting Longer to Make an Offer

In Ottawa, buyers now routinely review 5, 10, or even 15 listings before making an offer. That’s a complete reversal from the 2020–2022 market, when homes were snapped up in days. This shift isn’t limited to one city. Across Canada, the same pattern is emerging: more inventory, less urgency, and buyers who are taking their time to compare, negotiate, and think twice. For anyone trying to buy or sell right now, this matters a lot. Disclosure: Some links on this page are affiliate links. If you make a purchase through them, Britwealth may earn a commission at no extra

Read More »

How Population Growth Is Affecting Housing Demand Across Canada

Canada’s housing market is often discussed as a single national story, but the reality on the ground is far more fragmented. In Metro Vancouver, year-to-date pre-sale condo sales have dropped roughly 60% from an already weak 2024, according to transaction data from Altus Group. That kind of collapse in one region tells a very different story from what’s happening in Alberta or Atlantic Canada, where different development models and demographic patterns are creating distinct pressures. Disclosure: Some links on this page are affiliate links. If you make a purchase through them, Britwealth may earn a commission at no extra

Read More »
Why So Many Canadians Are Choosing to Rent Forever Instead of Buying
Apartment Leasing Tips

Why So Many Canadians Are Choosing to Rent Forever Instead of Buying

Carrying a $600,000 home in the Greater Toronto Area with a 10% down payment and a five-year fixed rate of 4.1% costs roughly $2,665 per month. The average one-bedroom apartment in Toronto rents for $2,360. That gap of about $305 each month is one reason a growing number of Canadians are deciding that renting forever makes more sense than buying. Disclosure: Some links on this page are affiliate links. If you make a purchase through them, Britwealth may earn a commission at no extra cost to you. We only include products and services that are relevant to the topic.

Read More »

The Future of Commercial Real Estate in Canada After the Work from Home Shift

The shift to remote work, accelerated by the COVID-19 pandemic, has profoundly reshaped the Canadian commercial real estate landscape. While initial predictions of a complete office space collapse proved premature, the reality is a nuanced and evolving market demanding adaptability and strategic foresight from investors, developers, and tenants alike. This article delves into the current state and future trajectory of Canadian commercial real estate, analyzing the impact of work-from-home (WFH) policies, emerging trends, and practical considerations for navigating this new era. The Immediate Impact: Vacancy Rates and Rental Adjustments The most immediate consequence of the WFH shift was a

Read More »

Renting vs. Buying in CA: The Great Debate (and How to Decide)

Deciding whether to rent or buy a home in California is a monumental decision, especially given the state’s unique real estate landscape. High property values, coupled with fluctuating interest rates and diverse market dynamics across different regions, mean the traditional “buy to build equity” mantra needs careful consideration. This article drills down into the specific factors relevant to California, providing a framework to help you determine the best path for your financial future, focusing on actionable strategies and realistic considerations. Renting in California: The Hidden Advantages Often, the allure of homeownership overshadows the less visible benefits of renting. In

Read More »
How Canadian Buyers Can Tell a Fair Appraisal From a Rushed One
Home Buying

How Canadian Buyers Can Tell a Fair Appraisal From a Rushed One

A home appraisal comes back in 48 hours. That sounds like good news — faster closing, less waiting. But in the Canadian housing market, speed can be a warning sign. The average appraisal takes 7 to 10 days from start to finish, and a report that lands in two days may mean the appraiser didn’t spend enough time on the property, the research, or the numbers. A rushed appraisal can leave you overpaying by thousands or, worse, facing a loan denial when the lender spots the discrepancy. Disclosure: Some links on this page are affiliate links. If you make

Read More »