When searching for the perfect home, Canadians face a classic dilemma: balancing affordability with liveability. This challenge was front and centre in RE/MAX’s 2024 Liveability Report, highlighting what matters most to Canadians when choosing a neighbourhood.
According to a survey commissioned by RE/MAX, affordability ranked as the top priority for 44% of Canadians. However, many highly ranked "liveable" neighbourhoods come with trade-offs such as safety concerns or limited amenities. So, can Canadians have both affordability and liveability—or is compromise inevitable?
The Evolution of Great Neighbourhoods
Many of Canada’s most sought-after neighbourhoods weren’t always so desirable. Their success stories often stem from dedicated community investment and gradual development.
Take Toronto’s iconic neighbourhoods like Parkdale, Cabbagetown, and Leslieville. Once considered rough-around-the-edges, their proximity to the downtown core and relative affordability attracted residents and businesses alike. Over time, these areas evolved into thriving, trendy communities—but at a cost. Today, home prices in these hotspots are beyond the reach of most first-time buyers.
A New Reality for First-Time Homebuyers
Higher interest rates, stringent mortgage stress tests, and skyrocketing prices make today’s housing market especially tough. Still, 73% of Canadians believe homeownership is the best investment they can make. But success often comes with setting realistic expectations.
For first-time buyers, the journey typically starts with compromise. Consider these steps:
- Start with What You Can Afford: Enter the market where you can, even if it’s not your ideal home.
- Build Equity: Over time, homeownership builds financial stability.
- Upgrade When Ready: As your situation improves, you can move into a more desirable area or larger home.
Why Supply Is the Key
When a neighbourhood becomes highly desirable, demand drives prices up, limiting affordability. That’s why RE/MAX has long called for a national housing strategy focused on increasing supply. However, this approach must go beyond quantity to ensure neighbourhoods remain liveable, offering essentials like schools, transit, and healthcare access.
Until Canada strikes this balance, homebuyers must work closely with real estate professionals to find communities that best fit their needs.
Ready to find a home that checks your liveability and affordability boxes? Connect with a RE/MAX Performance real estate expert today.
