Pandemic dulls shine of city life for buyers

COVID-19 has boosted interest in suburban or rural housing, Nanos survey finds

The pandemic appears to have taken some of the shine off downtown living, long the favoured destination of young professionals eager to reside close to their jobs.

Newly released Nanos research for the Ontario Real Estate Association (OREA) suggests home buyers are more attracted to the space and lower-density populations outside the city since COVID-19.

Among those considering a home purchase in the next two years, 61per cent of online survey respondents agreed or somewhat agreed that COVID-19 has increased their interest in suburban or rural housing.

Only 34 per cent said they were more drawn to downtown living since the public health crisis hit.

Younger people showed slightly more interest in living in the suburbs with about 63 per cent of those18 to 54 agreeing or somewhat agreeing, compared with about 58 per cent of those 55 and older.

“The level of appeal when it comes to living in a downtown, high-density urban area right now is not as strong as the suburban and rural,” pollster Nik Nanos said Tuesday in an online presentation of consumer perceptions of the real estate market.

The findings could suggest a disconnect between reality and perception, he said.

“If people are in downtown Toronto they know that it’s OK. For people that are living in other parts of the province perhaps there’s a little more anxiety on that front,” Nanos said.

The research shows the pandemic has boosted the desire among renters to become homeowners, with 25 per cent of respondents saying they are more interested in owning a home now than before. Only 13 per cent of renters were less interested in buying a home as a result of COVID-19. Fifty-four per cent said their interest in buying hadn’t changed.

Those renting consumers are under the most “personal pressure” because they may not have the space they want to work from home, he said.

“People are now looking at places where they live as places that they work and places they spend more time. This has put a significant level of pressure on renters. When we ask respondents what they want in a new space, it’s space to work, a back yard. “That might explain why there’s a significant level of appeal right now for suburban properties and properties in rural areas,” Nanos said.

He said other research has shown that people are looking for a simpler life with more connection to family and friends.

Realtor Melanie Piche said the pandemic has accelerated everything from technology to virtual business practices by five or 10 years.

The same is true with real estate. People who were thinking about moving out of the city or into the city are choosing to do it sooner rather than later, accelerating their lifestyle choices.

“I don’t think there is going to be a mass exodus from the city, but I think people will make faster lifestyle choices than they might have made if it wasn’t for this new way of living that we’ve all gone through,” she said.

OREA president Sean Morrison said affordability has been prompting consumers to consider housing outside the city for some time.

But, he said, “This has definitely accelerated people’s plans of moving out.”

Nanos surveyed 1,005 Ontario residents between June 23 and June 30. Respondents expected to be buying or selling a home within two years.