During the early months of the COVID-19 pandemic, the Canadian workforce showcased its adaptability, with a significant portion embracing remote work as the new standard. According to Stats Canada, the percentage of Canadians working most of their hours from home soared from roughly 7% in January 2020 to about 40% in April 2020, driven by stay-at-home orders and the need for social distancing.
By November 2023, the number of Canadians working from home on any given day during the week had declined to 20%, indicating a gradual return to pre-pandemic work patterns. However, this figure was still significantly higher than the 7% seen in May 2016, underscoring the lasting impact of the pandemic on work habits. The increase in remote work changed daily routines and had significant implications for the real estate market across the country.
Now that it’s been over four years since the pandemic, with many companies still offering remote work, Zoocasa used annual sales data from the Canadian Real Estate Association and Stats Canada to see how remote work may have affected the national real estate market.
The New Work-Life Norm
One of the perks of remote work is having more flexibility when choosing a home base. Although all average home prices in Canada have increased since 2020, five regions, all located in British Columbia or Ontario, have seen home prices exceed this national average. These regions include Greater Vancouver, the Greater Toronto Area, Fraser Valley, Hamilton-Burlington, and Kitchener Waterloo.
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 and Nova Scotia.
Moving to Alberta
As reported by Stats Canada, Alberta set a national record for interprovincial migration in 2023 with a net gain of 55,107 people, the largest since 1972. Alberta experienced a net gain of 23,376 people from Ontario and a net gain of 15,250 people from British Columbia.
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. 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 Greater Toronto ($1,127,426) compared to Calgary ($551,420) revealed significant savings, with Calgary being 104.46% cheaper.
Additionally, moving from Greater Vancouver, the largest city in British Columbia, to Calgary also showed a considerable difference, with Calgary being 131.63% cheaper.
Meanwhile, at the average price of $385,334, buying a home in Edmonton in 2023 was 192.58% cheaper than buying an average house in Greater Toronto and 231.46% lower than buying an average house in Greater Vancouver.
In May 2022, Alberta’s year-to-date home sales reached 43,352, nearly matching the British Columbia rate of 44,066 sales. This figure is notable given Alberta’s historically lower number of sales. By May 2021, British Columbia had 60.64% more sales than Alberta and 55.61% more by May 2020.
Atlantic Canada’s Bubble
Looking back on Canada’s response to the l COVID-19 pandemic, the outcomes in the Maritime provinces were particularly noteworthy. Known as “The Atlantic Bubble,” Nova Scotia, Prince Edward Island, Newfoundland and Labrador, and New Brunswick implemented stricter border closures and mandated quarantine for visitors from outside these regions. These stringent measures, coupled with the geographical isolation of the area, contributed to keeping COVID-19 infection rates low. While provinces like Ontario experienced high infection rates and extended lockdowns, residents of the Atlantic provinces were able to enjoy fewer restrictions due to lower cases of infection.
This successful response to the global outbreak may contribute to the increased desirability of relocating to the Atlantic provinces. Between 2020 and 2021, during the height of the pandemic and people working remotely, all regions in the Maritimes experienced a substantial increase in home sales. Newfoundland had the highest year-over-year increase of 94.46%, followed closely by PEI at 77.16%, Nova Scotia at 74.89%, and New Brunswick at 73.40%.
Nova Scotia, in particular, made headlines for the increased number of people moving to the province. According to research by the University of Dalhousie, there had been an estimated population growth of over 20,000 people to Nova Scotia from provinces outside of Atlantic Canada between 2022 and 2023.
From 2021 to 2022, the average home price in Halifax-Dartmouth rose by 16.11%, followed by a more minor increase of 2.47% from 2022 to 2023. Additionally, year-to-date sales in Nova Scotia saw a significant jump of 74.80%, reaching nearly 6,391 from May 2020 to May 2021. However, by May 2022, sales had decreased by 20.59% to 5,504.
Are you thinking of moving provinces? Give us a call today! One of our experienced real estate agents can guide you through the home-buying process.
