I think this is definitely the case. My wife and I work in tech and we left Vancouver in large part due to real estate prices. We went to Toronto in 2015 and unfortunately couldn't buy right away and prices went nuts there too. My company has an office in Halifax with job openings for similar roles that will pay about the same so it is a consideration. However, my wife is doing really well in her career so there is the risk of walking away plus our family being in Vancouver, Halifax makes it even harder to see them.  Any increases we get in pay moving forward are wiped out multiple times by the increase in housing prices in Toronto. The average house in Toronto went up 300K. That would require an income increase of $40,000 plus an extra $60,000 saved to just keep pace, never mind save and get ahead. To be honest I can't see how anyone not dependent on a job who owns in Vancouver or Toronto would not be cashing out and living on off the riches of their home lottery ticket.