In recent years, a significant number of Gen Z and Millennials have been leaving major Canadian cities like Toronto and Vancouver. High living costs, housing affordability issues, and the rise of remote work opportunities are driving these younger generations to seek more sustainable lifestyles in other regions.
Factors Driving the Exodus
Skyrocketing Cost of Living
The cost of living in Toronto and Vancouver has reached unprecedented levels. In January 2025, the average home price was $1,070,100 in Toronto and $1,173,000 in Vancouver, requiring annual incomes of $223,290 and $243,300, respectively, to afford a home. This financial strain has made homeownership unattainable for many young Canadians. STOREYS
Housing Affordability Crisis
Beyond high home prices, rental costs have also surged. In 2019, the average rent for a two-bedroom apartment was $1,748 in Vancouver and $1,547 in Toronto, with vacancy rates at 1.1% and 1.5%, respectively. These figures have only increased since, exacerbating the affordability crisis.
Limited Job Opportunities and Wage Stagnation
Despite being economic hubs, Toronto and Vancouver have experienced job market saturation in certain sectors, leading to increased competition and limited opportunities for young professionals. Wage stagnation further compounds the issue, making it challenging for Millennials and Gen Z to keep up with the rising cost of living. Immigration News Canada
Rise of Remote Work
The COVID-19 pandemic accelerated the adoption of remote work, allowing many professionals to work from anywhere. This flexibility has enabled younger generations to relocate to more affordable regions without sacrificing career opportunities.
Destinations of Choice
As Gen Z and Millennials leave Toronto and Vancouver, several Canadian cities have emerged as attractive alternatives due to their affordability, job opportunities, and quality of life.
Ottawa, Ontario
Ottawa has become a magnet for young professionals, offering a strong labor market and a comparatively lower cost of living. A study by Ryerson University highlighted Ottawa’s appeal to Millennials seeking better affordability without compromising on urban amenities.
Calgary and Edmonton, Alberta
Alberta’s major cities, Calgary and Edmonton, provide affordable housing options and have been attracting young Canadians seeking a balance between urban living and financial sustainability.
Halifax, Nova Scotia
Halifax offers a vibrant cultural scene and a growing economy, making it an appealing destination for those looking to escape the high costs of larger metropolitan areas.
Implications and Future Outlook
The migration of Gen Z and Millennials from Toronto and Vancouver has significant implications for both the departing and receiving cities. While smaller cities benefit from an influx of young talent and economic stimulation, major urban centers face challenges related to demographic shifts and potential labor shortages.
Addressing housing affordability and cost of living concerns is crucial for retaining young populations in Canada’s largest cities. Policymakers must implement strategies to make urban centers more accessible and livable for future generations.
References
Better Dwelling. (2018). See Ya! Local Millennials Are Abandoning Toronto and Vancouver. Retrieved from https://betterdwelling.com/see-ya-local-millennials-are-abandoning-toronto-and-vancouver/
Immigration News Canada. (2025). Avoid Moving To Canada In 2025 | Here Are Top 10 Reasons Why. Retrieved from https://immigrationnewscanada.ca/avoid-moving-to-canada-in-2025/
Storeys. (2025). Trending: How To Get In On 2025’s ‘Living Legacy’ Movement. Retrieved from https://storeys.com/homebridge-early-inheritance-living-legacy/
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