It’s no secret that most people want to live, work, and play in the same area, and it has caused more individuals and families to move into cities. But what the trend doesn’t show that there is a rise in these same groups moving to the suburbs looking for the same thing. The suburbs are becoming some of the most extensive metro areas across North America, with over 60% of the population in both the United States and Canada making a move out of the city.
Suburban hubs, also known as areas outside of cities, have seen rapid growth and development in the last five years. Suburban living is evolving and including a more urban blend. Over time, these areas will become denser and will start to take on characteristics that will be identified as “urban-like.” While investors alike have seen the process gradually increase over time, it is beginning to change the perception of individuals living in the areas.
The suburbs are no longer just for living. Work-life has blended into them, with more companies moving out of larger metropolitan areas and into more urban settings. Between 2005 and 2010, employment in suburban areas slowly climbed by 8%. The economy has played a considerable role in this trend as well, with employment steadily increasing over the last ten years.
It’s no secret that the average home price in the Toronto area is sitting right above $800,000, but that number does vary based on location. With home sales climbing, the price index has been up to over 4.4%. With more people moving out of the city and into these hub areas, the number of properties has increased to 8,595, which is a double-digit increase. The competition in the market has resulted in a substantial price growth above inflation for semi-detached, townhomes, condos, and apartments.
Types of Hubs
The desire to live in single-family homes has also pushed many first-time buyers into areas outside of the city. Each major metropolitan city contains different ages of development, with location playing into how each segment contributes to the entire region.
The well-established suburbs typically have higher home values and well-established development patterns.
These areas include wide ranges of home values and attribute to a vast majority of the population. The neighborhoods also include a wide range of household incomes and are located in areas where most of the housing was constructed decades ago. These areas are often areas that become gentrified and later become more high-end.
These areas tend to have some of the lowest home values and tend to see little to no population growth. They include aging infrastructure and city services that make them less attractive to new development.
The biggest reason for the shift to more suburban living and the growth of suburban hubs is affordability. Homebuyers are looking to get the “most bang for their buck,” and if that means giving up city living, then buyers are willing to make that move.
If you are looking to make a move from the city, Mehran Redjvani can help you find your new home in the suburbs!