Location, location, location? Price eclipses previous buyer priority
- sasha540
- Jun 26
- 3 min read
Updated: Jun 29
The Canadian real estate market has seen a big change. Now, price is more important than
location The economy and what people want have changed in housing.
For a long time, "location, location, location" was key in buying homes. Buyers were ready to pay more for being close to things like public transport, shops, and schools. But now, price is becomingmore important than location for many buyers.
This change is due to many reasons. Housing costs are going up, there's economic uncertainty,
and people's lifestyles are changing. Knowing these changes is key for both buyers and those in
the real estate business to make smart choices.
Key Takeaways
Price has surpassed location as the top priority for many Canadian home buyers.
Economic conditions and changing consumer preferences are driving this shift in priorities.
Proximity to amenities, once a crucial factor, is now secondary to price considerations.
Real estate investment decisions are becoming more financially driven than emotionally driven.
Understanding these market trends is crucial for both buyers and industry professionals.
The Shifting Landscape of Home Buying Priorities
The Canadian real estate market is changing rapidly. While location has always been a top priority for homebuyers, affordability has become an increasingly important factor in recent times. This shift is largely due to economic factors, such as rising interest rates, increasing costs, and changing buyer preferences across the country. However, location still plays a crucial role, as people continue to consider factors like proximity to work, amenities, and lifestyle when making purchasing decisions.
Traditional vs Modern Buyer Preferences
Before, where a home was located was key. But now, it's all about the price. A recent survey
found that 40% of people aged 25 to 44 who bought homes in the last year plan to live there for 16 years or more. Also, 48% of buyers aged 18 to 24 want to stay in their homes for the same
amount of time. This shows that people are planning more for the longer term, and may be more focused on getting a good deal than just the location.
Economic Factors Driving Change
Economic things like inflation and interest rates are making people think differently about homes.
Homeowners who locked in a good mortgage rate previously are more likely to hold onto their home for longer, and buyers who may want to purchase, are often waiting, or saving up for longer prior to making a leap. When ordinary people are thinking about selling or making a purchase they are taking more time now to weigh the costs.
Remote work and wanting bigger homes are also changing what people want in a home.
Now, things like energy-saving features, smart home tech, and being close to cities are important for some. People also want homes in walkable areas, with offices and health-focused features. Despite these more common wants, the flexibility generated by remote work is causing more people to broaden their horizons and move to smaller more affordable communities. Here on the island that often means buyers are moving further north on the island, often from Victoria to places like Duncan, the Cowichan Valley, Nanaimo, or the Comox Valley.
Generations are also playing a big role in how homes are bought and sold. About 56% of Gen Z and millennials plan to buy a home in the next two years. For the first time, more millennials own
homes than rent. This younger group is helping shape what people want in a home.
"The real estate market is undergoing a significant transformation, with price becoming the primary consideration for homebuyers across Canada. This shift is driven by a complex interplay of economic factors and evolving consumer behaviors, reshaping the landscape of homeownership in the years to come."
As the Canadian housing market keeps changing, it's key to understand what buyers want.
Real estate pros, policymakers, and buyers need to keep up with these changes. This way, they can make smart choices that meet the needs of today's homebuyers.
Why Price Has Become the Leading Factor
In Canada, homebuyers now focus most on price, not location or amenities. This change is due to affordability worries and economic uncertainty.
Housing costs keep going up, so buyers look for homes that won't break the bank. Affordability is now the key factor in their choices.
Generation | Prioritize Price |
Silent Generation | Top Priority |
Baby Boomers | Top Priority |
Millennials | 62% |
Studies show price is key for both baby boomers and millennials. Older buyers value it even more than younger ones. This shows today's buyers are looking for the best financial deal, not just their dream home.
As the economy affects housing, buyers choose affordability over other things. This change means real estate pros need to adapt to meet new market demands.
"Pricing of the product plays an essential role in customer satisfaction, and product information available on labels plays a significant role in customer satisfaction as well."
Coldwell Banker Survey Reveals New Trends
A recent Coldwell Banker survey shows changes in the luxury real estate market. The study found that more people now value price above all else when buying a luxury home.
Key Survey Findings
The survey found that 56% of people now see price as key when choosing a luxury home. This is
up from 50% in previous years. Of course, different regions show different market conditions and
changing buyer needs.
Consumer Sentiment Analysis
The survey also talks about the "High Earners Not Rich Yet" (HENRYs) group. This group has grown to nearly 9 million in 2024, with a 13% growth rate. They are shaping the luxury real estate marketwith their unique tastes and spending power.
Regional Variations in Priority Shifts
While price is now top for many, location, condition, and design still matter in some areas.
International buyers in the top 5% of the market rose by about 25% in 2023.
Priority Factor | Percentage of Consumers |
Price | 56% |
Location | 27% |
Home Condition | 10% |
Design | 7% |
"The shifting priorities of luxury consumers underscore the need for real estate professionals to stay attuned to the changing market dynamics and tailor their approach accordingly."
Impact of Interest Rates on Buyer Priorities
Mortgage rates play a big role in home buying decisions. Mortgage rates affect how affordable homes are. An increase in rates means Canadian homeowners were expected to pay an extra
$15 billion a year from 2023 forward.
Going from 1.94% to 5.45% on a $500,000 mortgage means a $1,000 more monthly payment.
The Bank of Canada's rate changes affect financing options for buyers. The Bank has been gradually reducing it's bank rate which is now down to 3% and these has been allowing banks and lenders to gradually reduce mortgage rates for borrowers. Although this is getting close to historical averages, the slowing economy and trade based economic uncertainty have keep Canadian real estate sales slow in 2025. Additionally, with local prices remaining relatively high, the combination of price and current interest rates continues to put an affordability strain on home owners and buyers a like.
Changes in interest rates impact how affordable homes are and what buyers want. Delinquency
rates have gone up for many credit products, including mortgages. For example Half of mortgage
holders struggled with payments in 2023.
Buyer Priorities in Canadian Real Estate Market
The Canadian housing market shows different priorities in urban and suburban areas. Prices vary by province, showing local economic and housing supply differences. Urban and suburban areas have unique preferences and property values.
Urban vs. Suburban Preferences
In cities, buyers now value neighborhood safety and older homes more. The need for close work locations has decreased with more remote work. Now, many want walkable communities and less crowded areas, valuing neighborhood quality over work proximity.
Suburban areas focus on commute times and access to amenities. Buyers here aim for a mix of affordability and lifestyle.
Price Point Considerations Across Provinces
Prices differ across provinces in the Canadian housing market. Despite hopes, 58% of buyers need at leas two years to save for a home. High mortgage rates and prices worry 85% of all buyers, with 95% concerned about the home-buying process.
Some are looking at co-ownership or cutting expenses to buy a home. Yet, 69% lack a personal
financial plan for buying a home, and 72% haven't sought advice. However, a significant portion of prospective buyers, approximately 69%, do not have a personalized financial plan for
homeownership, and 72% have not sought advice from professionals or online resources.
The Role of Location in Modern Home Selection
In today's real estate world, location is still key in choosing a home, even when price is a big factor for many. The Canadian housing market has seen a shift, with price now being the top priority for buyers. Yet, the importance of location cannot be ignored.
Being close to amenities, work, and quality-of-life aspects is crucial in buying a home. The proximity to schools, public transport, and recreational areas greatly affects a property's value and appeal. Also, the presence of well-kept homes, low crime rates, and easy access to daily
needs make a neighborhood more desirable.
The balance between price and location varies by individual priorities and regional market conditions in Canada. In cities like Vancouver or Toronto, where land is scarce, prices are higher due to limited expansion. On the other hand, areas with more land for growth see home values influenced by land availability and development potential.
Conclusion
In conclusion, location is still vital in choosing a home today. Buyers must weigh the benefits of a good neighborhood against the cost of their purchase. Understanding community features, infrastructure, and accessibility helps buyers make choices that fit their lifestyle and goals.
"A good neighborhood can be judged by how quickly homes in that area sell."
Neighborhood Indicator | Importance to Buyers |
Well-kept Homes | Significant |
Convenience to Amenities | High |
Low Crime Rates | Very Important |
Public Transportation | Crucial |
Public Schools | Highly Valued |
Well Paved Roads | Desirable |
The pandemic has made outdoor living spaces, home offices, and reliable internet more important. As buyers' needs change, the role of location in home selection evolves. Now, there's a focus on functionality and flexibility, alongside traditional neighborhood factors.
Choosing a location for a home is a complex decision. It balances individual or family needs with
the housing market realities. By focusing on what matters most, buyers can find a home that fits theirbudget and lifestyle goals.
As the market keeps evolving, it's important for all to adjust their plans. Buyers should look at price, availability, and service when choosing a property. Sellers and agents must also change how they market to meet each buyer's needs.
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I am a Victoria-based local realtor with eXp Realty. My commitment to honesty, integrity, loyalty, and hard work have been essential pillars for me because they drive a high standard of excellent service for my clients. Helping you realize your dream is my goal!
I service Vancouver Island, but my focus is on Victoria, Sooke, Saanich, Malahat, Shawnigan Lake, Cobble Hill, Duncan, and the rest of the Cowichan Valley.
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