Like migratory birds who travel from place to place in search of food, we too fall prey to a similar pattern. But unlike birds, our migratory patterns are largely dependent on the jobs and professions around which our lives revolve. This basic requirement has always been the root cause of huge population shifts towards urban areas and megacities. However, for the first time in centuries, human beings have started to break this pattern.

The past two years have seen massive complexities in the migratory movements of homebuyers across Canada. The new pattern we have witnessed is that urban populations have decreased while rural populations have increased significantly. This marks the sign of a new era in the world of real estate, one that might give birth to a new breed of rural cities.

The science behind urbanisation

As we all know, urban cities are never built in a single day but rather slowly and steadily over decades. It is the sheer amount of population rise that gives way to the demand for infrastructure and development. Simply put, the more people who move into the area, the more houses, buildings, shops and hospitals they’ll need. All this mixed together results in the growth of the real estate market.

Take, for example, Toronto, arguably the most urban and popular metropolis in Canada. Some would even say that Toronto is the New York City of Canada, and they wouldn’t really be wrong with that assessment. It has a massive population, a booming economy, and not to mention, majestic skyscrapers that shine in the distance. This is the perfect example of a Canadian mega city.

However, Toronto wasn’t always the urban hotspot that we see today. In fact, just a few decades ago, it was nothing but a couple of villages in the backwoods. It wasn’t until 1834 that it could actually be termed a ‘city’, following steady growth in population and infrastructure. So, what caused this rapid growth which made it one of the most commendable cities in Canada? The answer is industrialisation.

Industrial projects always attract huge populations, which increases the demand for housing, which leads to new housing and infrastructure projects, which further attracts more people. This cycle goes on and on, rapidly increasing the value of real estate in the area and creating an economic boom. Well, at least that’s how it used to be.

Where are Canadians moving?

For the last two years, Canadians living in cities have decided to move out and settle somewhere quieter instead. This has given rise to many new sub-city hotspots, which have seen a considerable rise in population growth. A 2022 census states that Ontario towns like Oakville, Clarington, Milton and Oshawa have seen a 10% to 20 % spike in population. These are just a few examples of localities which have been positively impacted by this new migratory trend.

It seems Canadians have realised that the housing market in megacities like Toronto has reached a point where there is more demand than supply. This creates a real estate bubble resulting in massive price hikes and desperate bidding wars amongst competing buyers. Naturally, this negatively impacts the average home buyer, as they have to pay more to get less.

On the other hand, moving to one of the many up-and-coming sub-cities located in Ontario could save them the painful ordeal of overpaying. As it is, the average price of a two-bedroom apartment in Toronto is somewhere around $ 450,000. Meanwhile, people moving to a sub-city like Woodstock can get a spacious house for the entire family for that same price.

What’s more, because of the normalisation of working from home, people are no longer grounded by a particular city or town. A person employed by a Toronto company can still shift to Woodstock while working from home. This opens up a new set of possibilities for the average homebuyer, who is finally free to make his/her own decisions. And that’s exactly what’s been happening all over Canada for the past two years.

What does this mean for the Real Estate market?

For the rural real estate market, this means a new brand of opportunity which will create more demand. As more and more people move into rural areas, it creates a natural demand for infrastructure and housing projects all across the countryside. The market in these areas will become extremely busy, with property demands going up for the foreseeable future. In the long run, this will lead to overall development, which will result in new megacities springing up.

For the urban real estate market, the aftereffects are somewhat mixed and complicated. A large exodus of people from urban cities means the market will open up, creating a much-needed relaxation in supply. No longer will the housing market be choked for supply only to barely catch up with the overwhelming demand. The good news for homebuyers is that they can expect property prices to go down. On the other hand, homeowners who have invested in the property market might suffer losses.

Is rural Ontario the new Real Estate hotspot?

When a mammoth-sized population moves into a stagnant and spacious town, it jumpstarts the real estate market in that area. We can see the same thing happening in Ontario, where most Canadians seem to be settling in.

Places like Wasaga Beach, Woodstock, Collingwood, Arnprior and Carleton Place have all witnessed significant population hikes over the past two years. This effectively proves that rural Ontario will have a considerable demand for housing development for the foreseeable future.

An important thing to note is that the real estate markets in some of these places are still in their early stages. For example, the average home price in Carleton Place is $ 252,000. This can be considered somewhat of a homebuyer’s dream. Similarly, a family moving into the tiny town of Arnprior can buy a spacious home for just $ 276,000. So, this can definitely mark the start of an ever-growing and prosperous rural real estate market.

How do you find the best real estate deals in Ontario?

Ontario is a big place with countless real estate properties available to the average home buyer. You’ll definitely need a lot of help if you’re moving into a new town or city in Ontario.

HomeAds is one of Ontario’s most reliable and trustworthy professional real estate agencies. They have a great foothold on the entire province and can present you with outstanding real estate deals no matter where you’re moving to. The Barrie-based agency comes with countless positive reviews from all of their satisfied customers. You won’t be disappointed!