By Julie Gordon

OTTAWA (Reuters), Canada’s urban exodus continued into the second-year of the COVID-19 pandemic. Tens of thousands left Toronto and Montreal in search of smaller towns or rural locations, according to official data on Thursday.

Statistics Canada estimates that 64,000 more people fled Toronto to seek out other parts of Ontario in the 12 months between February 2020 and March 2021. That’s an increase of 14% over the prior 12-month period.

Montreal, Canada’s second-largest city, has lost almost 40,000 residents in other Quebec areas, up 60% from the previous year.

COVID-19 and remote work have prompted thousands of Canadians and others to leave large, expensive Canadian cities. They are looking for more space and less costly real estate in smaller towns, coastal areas, or cottage towns.

The result has been a housing boom across the country, with prices increasing more rapidly in suburban and small-town areas than in major cities. This raises concerns about local residents being priced out, and puts strain on municipal services.

Canada’s average house now sells for C$780,000. This represents a 34% increase or nearly C$200,000 in just three years.

Atlantic Canada did well in this exodus. Halifax, Nova Scotia saw an increase of more than 6000 people between June 30th, 2021 and now, the majority coming from outside the province.

Rural Quebec is experiencing a boom, with more than 250,000 people moving from the urban centres of this predominantly French-speaking province.

Strong inflows are also being seen in Toronto’s so-called Golden Horseshoe. Oshawa saw an increase of 8,000 residents as they moved out Toronto. Hamilton and St. Catharines also experienced significant inflows.

Some of Toronto’s population declines were offset by immigration.

($1 = 1.2489 Canadian dollars)