Greater Toronto and Greater Vancouver are experiencing population growth of more than three per cent annually, and significant infrastructure investments, especially in transportation, are leading to improved neighbourhood quality across traditionally undervalued urban and suburban areas, according to the Next Neighbourhoods Report from ReMax Canada.

“Canada’s urban population is growing at an astonishing pace,” says Don Kottick, president of ReMax Canada. “Municipalities need to work with their provincial and federal counterparts to increase transit and housing infrastructure – which is already happening in some pockets of the Greater Toronto and Greater Vancouver Areas. New transportation links, often developed alongside housing, are transforming once overlooked and undervalued neighbourhoods into magnets for buyers seeking shorter commute times while achieving better affordability. Expanding access strengthens connectivity in community and creates excellent potential for long-term liveability and value.”

Higher cost of living

Benjamin Tal, deputy chief economist at CIBC says, “population growth normally tracks at one per cent annually, but Canada has consistently seen upwards of 3.6-per-cent growth year-over-year. Governments, at all levels, are under-projecting the population increases and consequently, could repeat past mistakes if they don’t pivot to reality. The Canadian government has realized they can have too much of a good thing, and need to have sustainable, measured growth.”

An Angus Reid survey commissioned by ReMax Canada found that 37 per cent of Canadians have made compromises to live closer to urban centres, including accepting a higher cost of housing.

Almost half (41 per cent) of GTA residents compromised on price to land a location closer to an urban centre.

“Livability is important to Canadians, and many buyers know what they’re willing to compromise on, in order to get more on their must-have list,” Kottick adds. “Every market has something for everyone, but not all things. Compromise has always been part of the buying process, which includes managing expectations and setting realistic goals.”

Based on the criteria of affordability, quality of life and a buyer’s return on investment, two types of emerging neighbourhoods surfaced: Up-and-coming communities seeing advanced development, and regions that have traditionally been undervalued due to a lack of transportation access and misconceptions.

Affordability top factor

The survey reports that 37 per cent of Canadians valued affordability as a top factor in choosing their neighbourhoods, followed closely by proximity to amenities such as restaurants, shopping and grocery stores (36 per cent) and convenient access to public transit (31 per cent). Canadians want to spend more time in their neighbourhoods shopping at local stores (58 per cent), dining out (52 per cent) and socializing with friends, family and neighbours (43 per cent), underpinning the impact a chosen community has on day-to-day liveability.

As governments at all levels invest in infrastructure and community revitalization, most Canadians say they feel these policies bring added benefits to their communities, with more businesses (88 per cent) and restaurants (87 per cent) having the greatest impact. New infrastructure, especially transit development, ranks lower at 41 per cent, but arguably has the biggest impact on the emergence of a “next neighbourhood.”

As population increases, governments have begun investing in transit infrastructure – often a precursor to new businesses flocking to communities and facilitating growth. “Communities often experience transit development before and alongside new residential housing,” says Kottick. “In Ontario, we’ve seen rapid housing developments labeled Transit-Oriented Communities hugging the new Ontario Line actively under construction.”

Tal adds, “Canada needs to look at alternative housing models including factory-made construction to drastically increase housing starts to address the ongoing supply issue. Expanding transit and other infrastructure is also just as important, as it adds affordability and connectivity to traditionally less-accessible communities.”

‘Next Neighbourhoods’ in the GTA

• Clairlea-Birchmount (Toronto)
• Wexford-Maryvale (Toronto)
• Crown Point (Hamilton)
• Aldershot South (Burlington)
• Downtown Markham (Markham)
• Seaton (Pickering)
• Don Mills – Victoria Village (Toronto)