Talked about for decades, remote work has finally gotten its big start with the Covid emergency. Lockdowns and quarantines have forced just about any who can to work from home to do so. Commercial office space has emptied, while spare rooms have taken on the look of command centers or Zoom broadcast studios. With little point to living near the old office and little charm to urban life in a state of quarantine, city residents have decamped for the suburbs. Real estate development and pricing have adjusted accordingly. But as remote work arrangements become more permanent, today’s immediate patterns may change yet again. Suburbs may lose out to a shift in the direction of small towns and exurbs. Indeed, evidence of just such a shift has already begun to emerge.
Business leaders are certainly planning to continue the work-from-home pattern even after the pandemic lifts. To be sure, the economy’s partial re-opening has already brought some who had gone home last spring back to commercial office space. A more thorough re-opening will doubtless bring more back into the old, daily office routine. But much of the pandemic-inspired arrangements will persist on a more permanent basis. Of the 46% of workers who worked from home during the worst of the lockdowns and quarantines last spring, a Gallup survey finds that fully one third of them want to stay there and many have already made arrangements with their employers to do so even as anti-virus strictures lift. A PWC survey found that 30% of workers would prefer to work from home indefinitely and that a mere 20% of executives planned to return to pre-pandemic work arrangements. Some 80% of executives claim that work-from-home has improved productivity and as many as 70% are investing in tools to facilitate remote work. Some 13% of executives report that they are considering ways to abandon centralized office arrangements altogether.
To date, the pain of this shift has fallen on the cities. Vacancy rates in urban commercial real estate have jumped in every region of the country. New York City and San Francisco have seen vacancy rates jump by half from 10% a year ago to 15% at last measure. Other cities report similar or greater erosions so that vacancy rates nationally run close to 30%. As leases run to term, likelihoods suggest that vacancies will more likely rise than fall.
Residential patterns have moved in tandem, and perhaps with even greater drama. Many former urbanites have left the city, because there is no advantage to living near a closed office and because the anti-virus quarantines and lockdowns have dulled the allure of urban living altogether. These people have set themselves up in the suburbs. And because the suburbanites have stayed put, the relative supply and demand for housing has skewed. Data are spotty and not as current as one would like, but the picture is clear, nonetheless. Suburban properties listed for sale have been snapped up by the urban refugees. An industry source, Realtor.com, notes that the inventory of suburban dwellings for sale has fallen by some 40% from year-ago levels, and those houses on the market are spending 20% less time waiting for a buyer than previously. Suburban home prices are rising at about twice the pace of their urban equivalents.
While established suburbanites might well revel in this trend, a more permanent move to remote work promises still additional shifts that may not be as much to suburbanites’ liking. Suburbs originally gained popularity because they combined room and relative peace with more or less easy access to urban work centers and did so at a lower price point than comparable space in town. But if that urban work center no longer matters as much as it once did, there would seem to be little need to locate within commuting range. People might be attracted to space farther out, where they might get more for their money and enjoy an even better lifestyle. The better-established remote work becomes, the more people are likely to shift yet again, out of the suburbs to exurbs or small towns. Those attractions will likely improve over time as the pioneers of such a shift draw the shops and restaurants that can entice still more people.
And, as documented in a recent City Journal article, “Remotely Competitive”by Steven Malanga, smaller towns and cities are already betting on such a trend. The Shoals metro area of Alabama has begun to offer remote workers $10,000 each to relocate there. The somewhat bigger town of Tulsa, Oklahoma has made a similar offer to 250 tech workers, while Savannah, Georgia offers money toward moving expenses for those who will relocate. Topeka, Kansas and Hamilton, Ohio offer similar inducements. A real estate developer, Commons, has jumped onto the trend as well. It is already building what it calls “remote work hubs” in five smaller cities around the country. One of these combined residential-workspace complexes is in Bentonville, Arkansas, home of Walmart but otherwise still a smallish city. Others are going up in Rochester, New York and New Orleans, as well as Ogden, Utah and Rocky Mount, North Carolina.
The suburbs may have gained permanently on the cities, though a complete economic re-opening may in time restore the allure of urban life and bring residents back despite widespread remote work arrangements. At the same time, straws in the wind suggest that work at home will ultimately take many now in the suburbs farther away from the cities and restore the prosperity of small towns after more than 100 years of decline. Real estate prices and activity will reflect that trend as it has the recent urban flight to the suburbs. The wheel, as the saying goes, is still in spin.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
