Canadians Investing in Rural Property Market Seeking More for Less

Many property developers who normally focus on Canadian small town markets are finding that their markets aren’t quite so small anymore. The national real estate boom has made the cost of buying property in Canada’s big cities prohibitive for buyers on a budget and the selection has been reduced even for those who aren’t as limited financially. As a result, small towns and rural areas are attracting more local and international buyers. Investors and property developers, take note!

Canadian rural property developments offer quality on a budget

Rather than saving every dollar for the years and years it takes to get a deposit together for an urban home, many Canadian first-time buyers are trading their city-dwelling plans in for affordable homes in smaller areas.

Rural properties are especially attractive to singles and young families because the lower prices help stretch each dollar further. In fact, a recent Statistics Canada study reported that 71% of rural-dwelling adults aged between 25 and 39 owned their own home; by contrast, only 48% to 54% of their urban counterparts were homeowners.

Lower costs are a definite factor, but the large difference in rural versus urban ownership is also due to the fact that the availability of rental housing in rural areas is often sparse. Adults who no longer live with their parents are faced with the choice of renting or buying and rural adults, with few rental options and low housing prices, are logically more likely to buy. Urbanites, on the other hand, take a little longer to get into their first home because high costs and more rental properties make delaying their first home purchase a little easier.

Small town property markets also appeal to more expensive tastes

Smaller real estate markets also have something to offer buyers with a little more disposable income. Many homeowners choose to buy in towns close to the cities in which they work in the interest of a more serene commute and the ability to escape the city when the workday is through. They also usually enjoy bigger lots and a much larger selection of properties.

The most prosperous property developers are building custom homes with unique floor plans, luxurious amenities, and dazzling views - and yes, they are building in Canada’s smaller markets. The evidence is in the numbers; most of Canada’s top selling regions are in small towns and rural developments, not in the cities. Many of these are properties that can - and often do - double as vacation or retirement homes for those who are not faint of wallet.

Canada’s rural areas grow to accommodate demand

It may come as a surprise that many of Canada’s rural real estate markets are doing so well. However, the reality is that these areas have appealing characteristics for diverse groups of buyers. With cities getting bigger and costlier, property developers are taking the opportunity to attract buyers of all shapes and sizes to Canada’s smaller developments.