Return-to-office mandates: An ominous sign for out-of-province homebuying?

Plenty of Canada’s top banks and financial institutions have been quietly ramping up return-to-office efforts this year – and a continued swing away from remote-working arrangements across the country could have big implications for regional housing markets.

During the COVID-19 pandemic, the work-from-home revolution heralded a so-called “urban exodus” from Toronto and Vancouver as scores of Canadians packed up their tiny, cramped city apartments and flocked to roomier accommodation in more affordable markets.

In many cases, workers were able to keep their job in a full-time remote role, with the trend helping spur a surge in homebuying activity in cities like Calgary where average property values are far lower than in Canada’s priciest markets.

But if companies start requiring their employees to spend at least some of their week in the office, that could potentially weigh against out-of-province homebuying.

Max Singh (pictured top), a Calgary-based broker with TMG The Mortgage Group, told Canadian Mortgage Professional that flexible remote and hybrid work arrangements were a “key driver” of migration to Alberta in recent years – and that he was already having active discussions with clients about the possible impact of stricter return-to-office policies.

“As more employers push for employees to return to the office, whether fully or in a more structured hybrid format, it’s reasonable to expect that some potential buyers may rethink a permanent move out of province if they need to be closer to their workplace,” he said.

Still, that’s not to say Alberta’s status as a prime homebuying option for Canadians in more expensive markets is under huge threat.

Singh said he believes a shift away from remote-working arrangements by major employers will have a “nuanced” impact on the province’s housing outlook.

“Many companies have embraced flexible policies for the long term, especially in sectors like tech and professional services,” he said. “For these individuals, Calgary and Alberta still offer excellent value, a lower cost of living, and an opportunity to balance work and lifestyle in a way that larger cities can’t always provide.

“Second: Alberta’s appeal isn’t only about remote work. We continue to see buyers motivated by the province’s strong economic fundamentals, lower taxes, lifestyle advantages, and opportunities for investment and new development.”

Moving back to a pricier market: not so appealing for some

For those Canadians who purchased homes in Alberta but are now being called back to their offices in Toronto or Vancouver, meanwhile, simply packing a suitcase and selling their home could be easier said than done.

Plenty of those people have now laid down roots in the province, Singh pointed out, by starting families and becoming active members of their new communities. “This momentum can’t be unwound overnight by shifts in corporate policy,” he said.

Kingsley Ma, Area Vice President at RE/MAX Canada, suggests now is an opportune time for first-time buyers due to moderate interest rates and increased choice, allowing for negotiation. https://t.co/CteuGetMHx

— Canadian Mortgage Professional Magazine (@CMPmagazine) July 23, 2025

The reality remains that purchase prices in Alberta’s most expensive housing markets pale in comparison to the eyewatering costs seen in Ontario and British Columbia – and staying in those provinces, or moving back, may hold little appeal for workers who’ll never be able to afford a home there.

Affordability concerns likely to remain top of mind for workers

Home prices have been on the wane in major markets, but they still remain well out of reach for plenty of Toronto and Vancouver buyers – not least those purchasing for the first time or looking to snag a move-up property.

Ratehub.ca’s latest housing affordability study showed that in June, the average household required an income of $125,620 to afford a standard home in Calgary, and $97,570 in Edmonton. By contrast, Toronto homebuyers needed to earn a combined $204,840, while in Vancouver the amount was even higher at $238,820.

That’s part of the reason Singh can’t see efforts to bring workers back to the office dulling the appeal of Alberta – or other more affordable housing markets – as an ideal place to purchase a home anytime soon.

“In my view, return-to-office trends may moderate the pace of out-of-province demand to some degree, but they won’t reverse it entirely,” he said. “Instead, we’ll likely see buyers more carefully weighing commuting realities and hybrid work flexibility when deciding how far they can live from major cities.”

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