HOUSE HUNTERS FLEEING THE CITIES FOR SUBURBS

Jun 20, 2022

By Steve Kee

Share on

New research shows house prices in Canada’s suburbs grew faster than in downtown areas during the pandemic as remote work spurred a preference for bigger homes.

The Bank of Canada says in a study released today that the closure of many downtown services coupled with a desire for more living space increased demand and prices for homes in suburban areas during the pandemic.

The central bank says this shift weakened the so-called proximity premium typically associated with homes in more urban areas, which tend to be more expensive due to scarce land, shorter commutes and better access to services.

The research shows that while house prices increased strongly in most neighbourhoods during the pandemic, the growth was strongest in the suburbs.

As a result, the bank says the real estate price gap between Canada’s suburbs and downtown areas, already narrowing steadily, shrank considerably.

Yet the bank warns that if the preference shift is temporary, house prices in the suburbs could face downward pressure.

 

Zoomer Kids
You Don't Have To Be A Zoomer To Love Zoomer Radio.
Check out what the Kids have to say!
Join Our Fan Club
Coverage Area
Downtown Toronto
96.7FM
Toronto HD
96.3 HD-2
Kingston to Windsor, Parry Sound to Pittsburgh
AM740
ZoomerRadio Logo

Recently Played: