Choosing a home can feel intimidating, given the variables that go alongside that decision. For example, do you want to live in an apartment or a detached property? Are you interested in a suburban community or inner-city living? Knowing where you want to live in Canada comes down to a few factors regardless of your answers.
No one wants to choose a space and then feel homebuyers remorse because they aren’t in love with the location, size or cost. So, to make you feel more confident in your decision, we’ve made a list of considerations to keep in mind when buying your first property.
Factors to Consider When Deciding Where to Live
Typically, when you’re choosing where to live, you’ll be excited about finding a new place and getting to decorate or buy new furniture. But the reality is before the fun part of home buying there is a lot of research, and financial planning to be done.
Here is a list of eight valuable considerations when deciding where to live in Canada.
#1. Affordability and Cost of Living
One of the main driving factors to consider when choosing where to live in Canada is your budget. When we speak about affordability, what we’re really asking is: does the cost of living in a particular neighbourhood fit into your budget? For the most part, choosing where to live (and the costs that come with that) should still let you live your ideal lifestyle. So being able to do the math on what you can afford is critical.
Every city and neighbourhood will have a different cost of living and cost to buy, depending on the real estate market and interest rates. So, before you choose where to live in Canada, make sure you make some comparisons and be honest about whether you can afford to buy a home in the neighbourhoods on your radar.
#2. Suburb vs. Inner-City vs. Rural
You may already have an idea of where you’d like to live. The most common options for homebuyers include suburbs, inner-city or downtown, and rural communities. But, of course, each of these areas has pros and cons. For instance, if amenities like hospitals or restaurants are essential to you, an urban setting might be better than a rural one with a long drive to shops and services.
| Community | Suburbs | Inner-City | Rural |
| Pros | Larger space, can be more affordable, bigger yard, quieter | Access to public transportation, more amenities, more job opportunities | More privacy, more space, typically a lower cost of living |
| Cons | May have a longer commute, can have fewer amenities | Can have higher crime rates, louder, higher insurance premiums | Lack of medical and emergency services, fewer amenities |
Most urban areas are associated with higher real estate prices, so it may be tempting to move to a more affordable community. Smaller communities allow you to purchase a larger property or space in today’s real estate market. But is that the right choice for your lifestyle? Let’s consider the following factors to help you decide whether that transition is worth the change.
#3. Your Current and Future Work Situation
Many Canadians were able to take advantage of remote work during the pandemic, and you might have found yourself in the same position. Remote work lets you have more freedom over where you live, but keep in mind that you may not be in this situation permanently. When buying a home, it’s vital to consider your five and 10-year plans.
For instance, if you switch jobs and suddenly have to commute further than when you moved, would this be a dealbreaker for securing a new job or a new home? Alternatively, would you be able to afford more gas and the time you spend driving?
Don’t be afraid to weigh the pros and cons of each of these answers. You don’t need a firm solution, as this is a hypothetical situation. But, you should have a plan.
#4. Where Does Your Community Live?
Your community is an essential part of what makes a home, so it’s important to ask yourself how you’ll be able to stay connected with your community in various neighbourhoods or even provinces.
Although it may be easy to justify a different area because it’s affordable, you should also be honest with how often you’ll drive or travel to visit with those people and whether having that type of support is necessary to own a property.
For example, if you have kids and need childcare support or aren’t able-bodied and require some help with home maintenance, considering living closer to relatives and family would be beneficial.
#5. Safety and Crime Statistics
A reasonable consideration for anyone is to look at whether you feel safe and secure in the community or neighbourhood you choose. Whether you’re considering crime statistics or going on gut feeling, ensuring that you’re confident to go for a walk by yourself or with your family is important. Although the property itself is a big decision, you also want to consider whether you can leave home and still enjoy your surroundings.
A great way to assess the safety of a potential area is to walk around (safely, with friends or family) at night. Take note of who you see out walking at night, and ask residents how they feel about the area’s safety.
How To Decide Where to Live in Canada
Knowing the four factors to consider when choosing where to live, you may realize that a few several areas or neighbourhoods are suitable. In this case, do a deep dive into what requirements will make or break the place you choose to live.
- Make a Pros and Cons List
Make a pro and con list for each location. We already did this when comparing the suburbs to other areas, and it does a great job of helping you determine what matters most to you. From there, it’s time to narrow your choice down.
- Narrow it Down to Your Top Options (3-5)
Sometimes, the decision isn’t always in our hands alone, and factors like employment or affordability come into play For that reason, make a list of three to five neighbourhoods or communities in which you’d be happy to live. Giving yourself three to five options gives you the flexibility to find the best home without limiting yourself to one specific area.
- Be Honest With Yourself
The final word of advice when deciding on your choice location is, to be honest with yourself. If commuting might be okay for a while, but you know it will eventually weigh on you and eat into your time, perhaps the suburbs aren’t worth giving up inner-city. A home is a long-term commitment, and selling has serious financial implications. Don’t buy a home unless you can see yourself happy in that neighbourhood for at least five years.
What to Do When You’re Priced Out of Your Ideal Market
Choosing your ideal neighbourhood based on your needs, support system, and crime rates are all well and good, but the price will always be the primary driver of where you decide to live. Your budget will be the biggest dictator of where you live, and you might find yourself priced out of your ideal (or even not so ideal) neighbourhoods. In this case, it’s important to avoid overspending, which will stretch your budget too thin and could give you homebuyers remorse. Instead:
If you are priced out of your ideal market:
- You may need to change your expectations based on your income and affordability
- Consider saving more money before you start making offers
- Perhaps you may need to extend your search to different cities or communities
- Hire real estate experts who can help you determine your options
Lastly, if you’re priced out of the real estate market, remember that today’s market is not forever. Things shift, and the market works in cycles, which means some years and some seasons are more expensive and hotter than others. The best thing you can do is practice patience, continue to monitor the market, and grow your down payment.
Bottom Line
Choosing where to live in Canada can feel like a big decision as to which home you buy. But, if you do your best to compare all of your options, get your financial situation sorted to the best of your ability, and think logically about your five and ten-year plans, you should be confident that your decision is the best one for you.
