The onslaught of the COVID-19 pandemic disrupted almost every aspect of Canadians’ lives and, while in most cases, we’re no longer forced to wear masks and, in some instances, no longer forced to get the jab, two major and related aspects still have a major influence. One would be housing markets, which saw home buying frenzies across the country when the Bank of Canada lowered its overnight rate to an unprecedented .25%, basically "free money" as Canadians lined up for cheap mortgages to buy homes. The other was the "work-from-home" phenomenon, which lingers to this day and has also had an effect on housing markets. Working from home meant Canadians could move to cities and towns where home prices were the lowest, and according to Stats Canada, they did. Between January 2020 and April 2020, the percentage of Canadians working remotely increased from roughly 7% to 40%. As restrictions were lifted, that number decreased to 20% by November 2023, according to StatsCan, but still enough to influence housing markets. Now, four years removed from the pandemic, online real estate portal, Zoocasa, cross-referenced annual home sales numbers from the Candian Real Estate Association and StatsCan to analyze how remote working may have affected housing markets. Average home prices in all areas of the country have increased since 2020, with five regions, all located in BC or Ontario, have seen home prices exceed, and abnormally influence, the national average. This includes the Greater Vancouver and Greater Toronto Areas, (GVA and GTA respectively) the Fraser Valley, Hamilton-Burlington and Kitchener-Waterloo. The Zoocasa report says “based on the high average home prices in British Columbia and Ontario and interprovincial migration data from Stats Canada, housing affordability was likely a driving factor for people moving to Alberta.” Figures from StatsCan show interprovincial migration in 2023 to Alberta was a national record, with a net gain of 55,107 people, the largest since 1972. Of those 23,376 people arrived from Ontario and 15,250 people came BC. “This record-breaking migration rate, which resulted in 2.2% population growth last year, was likely driven by Alberta’s lower tax rates and proximity to nature,” says Zoocasa. “These factors are especially appealing to Canadians who had to undergo lockdowns and social distancing during the pandemic and have been facing the rising cost of living since 2020.” “Looking at the 2023 annual average prices, the average home price in the GTA (was) $1,127,426 compared to Calgary’s $551,420 (a) significant savings. Additionally, moving from the GVA to Calgary also showed a considerable difference, with Calgary being 131.63% less expensive than the GVA’s $1,277,232.” In Alberta’s second largest city, Edmonton, the average price of $385,334 was 192.58% cheaper than buying an average house in the GTA and 231.46% lower than buying an average house in the GVA. Here’s how home prices rose between May 2020 and May 2024 in these areas: The GVA, from $1,066,199 to $1,349,534; the Fraser Valley from $862,005 to $1,074,923; The GTA from $929,673 to $1,165,789; Calgary from $460,201, and; Edmonton $371,639 to $429,106. The Canadian average price in May 2020 was $567,240, rising to $699,117.
