As Canadian housing prices continue to rise, homeowners need to decide how their life decisions will work around the rising cost related to owning a home.
As the world becomes more and more connected so do the implications of investment trends. No longer do the locals determine the prices of real estate in an area. The foreign buyer trend is something that has become extremely relevant in the pricing of Canadian real estate. The government tries to cool down this affect with regulation and taxes specifically targeted at foreign buyers, but the jury is still out as to whether or not it will help.[i] Bottom line is that people are being priced out of the Canadian major cities and are looking into alternative options such as renting or relocating.
We at EverJonge Home’s have noticed a recent major trend in which people are leaving the GTA and moving toward more affordable locations such as the Greater Windsor Area (GWA). Many of our new customers have similar stories in that they have sold their home in the GTA and have decided to make the move to someplace where their money can go farther. In the GWA, not only are homes more affordable but so is the cost of living.
Not everyone can afford to just make such a major move like that. We studied conducted research to answer what types of people are making this move and what situations they are in to allow this freedom. The first answer is retirees. The GWA is home to a large, growing retiree population. In 2016, 19.5% of the population in Windsor are over 65 compared to the total population of Ontario consisting of 18.9% over 65.[ii] With many retirees not having the same buying power with their retirement funds they had planned for, it is more important than ever to “make every penny count”.
Along with the affordability there are also many other aspects that make the GWA seem like an attractive location to a retiree. The GWA is also home to many different wineries, trails and recreational activities. They tend to have more mild winters and have direct access to two different “Great” fresh water lakes that offer their own list of activities. Not to mention direct access to the United States.
The other population group we see often moving to Windsor from the GTA or London is younger people with remote working situations. Remotely working or working from home has been a growing since the beginning of the millennia with over 20% of University Graduates working from home in 2008[iii].
This is an attractive option for businesses for a few different reasons. First is cost; the business does not have to pay for office space, hydro or any other resource the employee may use while at the older brick and mortar place of work. The company is able to send a few resources directly to the employee (computer etc.) and set them up to begin without requiring them to actually come to a set workspace. The second reason is technology. More and more online resources are developed every day that make remote communication easier and easier. This accompanied with the technology that allows companies to monitor their employees activity (within reason, probably) makes working from home a sustainable option.
Someone who used to have to live in Toronto because their company headquarters are located there now may have the freedom to live anywhere with access to internet. Thus they can take their same wage and job to a different location such as the GWA and set up a family on the same budget.
For the new locations where people are moving it brings in income. These people are making money or retiring in Toronto and spending it in the GWA. This along with the major investments being made by Windsor’s manufacturing industry looks for a promising future for the GWA.
As you consider your life planning either for retirement or for where you will establish a family, take these growing trends into consideration.
[ii] to http://www12.statcan.gc.ca/census-recensement/2016/dp-pd/prof/details/page.cfm?Lang=E&Geo1=POPC&Code1=1032&Geo2=PR&Code2=35&Data=Count&SearchText=Windsor&SearchType=Begins&SearchPR=01&B1=All&wbdisable=true