Population surge in rural Canada highlights urban affordability challenges

Anne McLellan and Lisa Raitt

The Coalition for a Better Future looks closely at how rural Canada is faring because we believe the development of these more remote communities is an economic imperative for all of us. This is especially true today when economic resiliency – from food security to supply chains - is becoming increasingly important.

This is why we welcome recent data that suggests Canada’s rural communities continued to grow at historically elevated rates.

According to detailed population estimates released in May by Statistics Canada, the number of people living outside of areas with large population centres totalled 6.29 million last year. That’s up 1.1 per cent from 2022, the third straight year with gains of above one per cent and four times the average pace of the previous 20 years.

This increase in population has even put a pause on the aging demographics of rural Canada. The median age of people living outside of metropolitan or higher density areas dropped to 45.7 years last year, from 45.8 years in 2022.  That’s the first decline in decades.

The influx of people should give a bit of impetus to rural economies that continue to struggle with a lack of resources for infrastructure and basic services.

The bad news is that the increased population reflects deteriorating conditions for Canadians in urban areas. The influx of people into rural communities is being driven by a spillover of people leaving cities that are becoming increasingly unaffordable.

Metropolitan or higher-density areas are growing at a pace of more than three per cent, which is unsustainable.

These findings underscore the urgent need for balanced development strategies that address urban affordability while bolstering rural communities, ensuring sustainable growth across Canada.