Canada Residential Real Estate Market Size (2024 - 2029)

The Canada Residential Real Estate Market is anticipated to experience growth over the forecast period, driven by increasing home prices and changing consumer preferences. The market's expansion is influenced by factors such as the shift to virtual tours and a heightened demand for larger homes due to remote work. Despite a decline in sales and new listings, the market has seen a reduction in property inventories, creating limited options for buyers. The Bank of Canada's monetary policies and the impact of COVID-19 have also played significant roles in shaping the market dynamics.

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Market Size of Canada Residential Real Estate Industry

Canada Residential Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 3.20 %
Market Concentration Low

Major Players

Canada Residential Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Canada Residential Real Estate Market Analysis

The Canada Residential Real Estate Market size is expected to grow from USD 59.30 billion in 2023 to USD 69.41 billion by 2028, at a CAGR of 3.20% during the forecast period (2023-2028).

  • As Canadian home prices continue to grow across the country, the national average home price broke an all-time high in January 2022. The average home price in Canada's housing market in January 2022 was CAD 748,439 (USD 587,487), up by 20% from 2021. That is the biggest year-over-year price gain in the history of the Canadian housing market. Price patterns for four different types of properties are investigated: new houses, new condominiums, resale houses, and resale condominiums. Before 2020, condominium units grew in value faster than single-family, semi-detached, and row residences. Many changes have occurred in the real estate sector since the outbreak, ranging from virtual tours to a preference for larger homes in the suburbs.
  • New Brunswick led the country in terms of the highest Y-o-Y price growth among the provinces, with home prices in New Brunswick up 32% Y-o-Y to CAD 275,000 (USD 215,861) for January 2022. The other Atlantic Provinces trailed behind, with Nova Scotia seeing prices increase by 23% Y-o-Y to CAD 392,828 (USD 308,350), Prince Edward Island with an 18% annual gain to CAD 351,890 (USD 276,216), and Newfoundland & Labrador with a 12% annual gain to CAD 324,800 (USD 254,951). Nationally, sales during January 2022 were down 11% Y-o-Y, while new home listings were down 11% month-over-month.
  • As a result, inventories of properties for sale have dropped to historic lows, leaving purchasers with few options. The Bank of Canada kept its overnight rate at 0.25%, where it has been since the beginning of the pandemic, in its January 2022 monetary policy review and said that it expects to keep it there through the middle quarters of 2022.
  • Due to COVID-19, builders, and buyers have mostly shifted to virtual tours and digital contract signings. The demand for larger houses has grown as working from home becomes more prevalent. According to the Bank of Canada (BoC), the housing affordability index declined by 15.3% in 2, reflecting less restrictive conditions for homeownership. Since then, it has gradually risen to exceed its pre-pandemic level in Q2 2021. The consumer house-buying power increased at the outset of the pandemic because of lower mortgage rates and higher Household Disposable Income (HDI).

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Canada Residential Real Estate Industry Segmentation

Real estate (land and any buildings on it) used for residential purposes is commonly referred to as residential real estate; single-family dwellings are the most prevalent type of residential real estate.

A complete background analysis of the Canada Residential Real Estate Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report. The Canada Residential Real Estate Market is segmented by Type (Apartments and Condominiums and Villas and Landed Houses) and City (Toronto, Montreal, Vancouver, Ottawa, Calgary, Hamilton, and Other Cities). The report offers market size and forecasts for the Canada Residential Real Estate market in value (USD billion) for all the above segments.

Type
Apartments and Condominiums
Villas and Landed Houses
City
Toronto
Montreal
Vancouver
Ottawa
Cagalry
Hamilton
Other Cities
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Canada Residential Real Estate Market Size Summary

The Canadian residential real estate market is experiencing a notable expansion, driven by a combination of factors including rising home prices, increased immigration, and evolving consumer preferences. The market has seen a significant surge in home prices, with the national average reaching unprecedented levels. This growth is particularly evident in the demand for larger homes in suburban areas, a trend accelerated by the shift towards remote work. The market is characterized by a diverse range of property types, including new and resale houses and condominiums, each exhibiting distinct price patterns. The influx of immigrants, particularly in major urban centers like Toronto and Vancouver, is further intensifying the demand for housing, both owned and rented, contributing to the market's dynamic nature.

The market landscape is fragmented, with numerous global, regional, and local players actively participating. Companies such as Amacon, Aquilini Development, and Century 21 Canada are prominent in this space, capitalizing on the opportunities presented by infrastructure development and demographic shifts. The ongoing integration of technology in real estate transactions, such as virtual tours and digital contract signings, reflects the industry's adaptation to contemporary consumer needs. Despite challenges like low inventory and high housing costs, the market is poised for continued growth, supported by favorable economic conditions and strategic government policies aimed at attracting skilled immigrants. This growth trajectory is expected to sustain the market's expansion, offering lucrative prospects for investors and stakeholders.

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Canada Residential Real Estate Market Size - Table of Contents

  1. 1. Market Insights

    1. 1.1 Current Economic Scenario and Consumer Sentiment

    2. 1.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights

    3. 1.3 Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector

    4. 1.4 Insights into Size of Real Estate Lending and Loan to Value Trends

    5. 1.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending

    6. 1.6 Insights into Rental Yields in the Residential Real Estate Segment

    7. 1.7 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate

    8. 1.8 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships

    9. 1.9 Insights into Real Estate Technology and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)

    10. 1.10 Impact of COVID-19 on the Market

  2. 2. Market Segmentation

    1. 2.1 Type

      1. 2.1.1 Apartments and Condominiums

      2. 2.1.2 Villas and Landed Houses

    2. 2.2 City

      1. 2.2.1 Toronto

      2. 2.2.2 Montreal

      3. 2.2.3 Vancouver

      4. 2.2.4 Ottawa

      5. 2.2.5 Cagalry

      6. 2.2.6 Hamilton

      7. 2.2.7 Other Cities

Canada Residential Real Estate Market Size FAQs

The Canada Residential Real Estate Market is projected to register a CAGR of 3.20% during the forecast period (2024-2029)

Concert Properties Ltd, Aquilini Development, Bosa Properties, Century 21 Canada and Amacon are the major companies operating in the Canada Residential Real Estate Market.

Canada Residential Real Estate Market Report Snapshots

Canada Residential Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)