Larger homes are top moving motivator amid economic uncertainty: Survey

The past four years have been anything but stable for Canadians.  

Amid the rocky final stages of a pandemic, turbulent inflation, rollercoaster interest rates, many have been forced to reevaluate their priorities.  

Throw in declining housing starts and a brewing trade war, and it’s no wonder the housing market feels more unpredictable than ever.  

According to a recent survey by LowestRates.ca, 61% of the Canadians who responded reported having moved recently stayed in their current city or town, up from 58% who reported so last year. 

Our fourth annual moving survey asked Canadians about their recent moves and near future ones, why they’re moving and where they’re headed – and what’s holding others back.  

One third of people who are either moving or have moved did so within their province

As mentioned, one of the biggest commonalities among people who are either planning to move or recently moved is sticking close to home.  

In Ontario, for example, where the majority of survey respondents are located, there has been a pronounced migration towards mid-sized cities such as London, Guelph, Barrie, Kingston, and Kitchener-Waterloo, says John Zinati, a Canadian real estate lawyer at Zinati Kay Barristers & Solicitors. 

“These places offer a good balance among the three key factors of affordability, job opportunities, and quality of life. The cost of living is much lower than in the Greater Toronto Area (GTA), allowing buyers to afford larger homes for the same price as small condos in downtown Toronto,” he continues. 

Lifestyle buoying peoples’ moves; employment, not so much

It’s notable that relatively few people who have moved recently (8%) or are planning to move (5%) are doing so for work. This is a continued trend from last year.  

This is likely due to laxer hybrid and remote workplace arrangements.  

Since early 2023, the percentage of new fully in-office job postings has fallen from 84% to 69% by year-end, stabilizing between 61% and 63% throughout 2024.  

“For many professionals who no longer commute to work every day, affordability and lifestyle are now more important than being close to a downtown Toronto office,” suggests Zinati. 

The hybrid work model, now common in many sectors, gives workers more flexibility to choose where they want to live. For instance, he says, “cities like Milton, Hamilton, and Oshawa continue to see an influx of residents due to their unique mix of affordable price points and reasonable geographical access to Toronto.” 

Learn more: The newcomer’s guide to home ownership 

The desire for larger homes continues to grow: 39% of movers upsized in 2025

Most can't afford to buy their "forever home" right away.  Instead, they start with "entry-level" homes, according to Steve Garganis, lead mortgage planner at Mortgage Architects. 

Five to six years ago, no one would have imagined a townhouse costing $1 million, he says. 

“Today, even in smaller markets, a 1,000 sq. ft. detached home sets you back at least $700,000,” he adds. “This is simply the reality of the current housing market.”  

Instead, homeowners may decide to grow the size of their homes incrementally through a series of moves.  

Zinati sees this frequently in his work.  

"Many newly married homeowners purchased smaller houses or condos over the past decade,” he says. “They built substantial equity from home price leaps over the last few years, which now allows them to move into larger homes.” 

This is especially true for growing families needing extra rooms or remote workers looking for a dedicated home office.  

For families who plan to upsize, he recommends future-proofing their purchase by choosing homes with flexible layouts that can adapt to changing needs. 

Downsizing: A niche choice

Downsizing remains a less popular option, with 10% of recent movers and 8% of planned movers citing it as their primary reason.  

Zinati suggests older homeowners are likely to stay in their homes longer instead of downsizing to condos or retirement communities.  

Typically, he says, this is due to high living costs, limited housing options, and a preference for 'aging in place' surrounded by familiar surroundings and community ties.  

 “Many retirees find that selling their homes and downsizing doesn’t provide the financial windfall they once expected—especially when factoring in condo fees, property taxes, and the steep costs of retirement communities." 

Instead, more families are opting to form multigenerational households.  

Zinati is seeing an increasing number of adult children and grandchildren moving in with older relatives to share expenses. This helps younger families manage childcare and housing costs while providing care for both aging parents and young children. 

Read more: What are the closing costs on a new condo? 

19% cite home affordability as the reason for moving

Despite recent interest rate cuts and a slight dip in home prices, affordability challenges persist.  

The ongoing economic uncertainty isn’t helping matters, says Garganis.  

“There’s no sitting parliament in Canada and the threat of President Trump’s imposed tariffs still exists,” he says. “Plus, before all this, we already had a slow economy. Uncertainty about jobs is real. I hear it from my clients daily.”   

In Toronto, new listings in February 2025 rose 5.4% year-over-year but the sales-to-new-listings ratio dropped by 16%, signaling a growing gap between supply and demand. 

While the average selling price decreased by only 2%, properties are taking 16% longer to sell. 

More listings mean more homeowners who have decided to sell, says Zinati.  

"They were waiting for market stability or can no longer afford their mortgage payments after last year’s rate increases,” he explains. “Some sellers may also be looking to cash out their equity, particularly if they purchased several years ago at lower prices.” 

Garganis offers a more optimistic outlook for buyers, acknowledging that while consumer confidence is currently low, the market is resilient and will (eventually) rebound. In fact, he suggests that now may be a good time to buy, with softened prices and mortgage interest rates down nearly 2% from two years ago.  

His advice to buyers: Purchase with a long-term plan and aim to hold for at least seven years. 

Related: All the different ways to access equity in your home 

With affordability tighter for some, families are rethinking their options, whether it’s staying put, upsizing for more space, or chasing a better lifestyle. These decisions are about finding alternative ways to build the life you want with the limitations you have. 

*Survey conducted by LowestRates.ca, polling 605 Canadians – with the majority of respondents being from Ontario – between March 8 and 9, 2025 who used LowestRates.ca’s mortgage quoter.