Canadian Real Estate Market

Residential real estate refers to land predominately used for housing, rather than commercial or industrial purposes. It includes both new properties and already existing ones.?House prices in Canada?have been steadily rising since the beginning of the 21st century. However,?income levels?have not increased at the same rate.

• Housing price index in Canada: 291.2
• Home ownership rate in Canada: 66.5%
• Number of housing units sold in Canada: 552.4k

HOUSE PRICES

• Average house price in Canada in British Columbia: 781.6k CAD
• Home price in Vancouver: 810.6k CAD
• Average house price in Alberta: 392.4k CAD
• House price to income ratio in Ontario: 5.8

The most expensive Canadian rental markets are Toronto and Vancouver. Most of the other pricey markets are also located in Ontario and British Columbia. Since the second half of 2020, the house price to rent ratio has surged, indicating that house price growth still outpaces rental growth.

RENTAL MARKET

• Rental price index in Canada: 109.2
• Rental vacancy rate in Nova Scotia: 2.1%
• Most expensive city to rent 1-bedroom apartment in Canada: Vancouver, BC

The Vancouver housing market has become overheated in the past few years and is one of the world's least affordable markets. In 2016, the city council approved a one percent tax on non-principal homes which are empty for more than six months a year, in order to increase the city's supply of rental properties. According to a 2018 survey, 59 percent of the respondents believed that investment by foreigners is the biggest reason for high housing prices in Vancouver. The future of the real estate market in Vancouver is unclear, but home prices are estimated to have increased by 11.4 percent in 2020.

AFFORDABILITY

• Least affordable housing market in Canada: Vancouver
• Biggest reason for high housing prices in Vancouver according to locals: Investment by foreigners

Canada is home to some of the biggest and most successful companies in the world, so naturally there is high demand for office space. Offices are also one of the asset classes that enjoys high popularity among investors. After taking a hit during the coronavirus (COVID-19) pandemic, the Canadian office sector has headed for recovery. In 2021, the value of office real estate investment in Canada is expected to reach 7.4 billion Canadian dollars, which is an improvement from 2020 but still much below 2019 levels.

• North American city with the lowest vacancy rate for office space: Toronto
• Share of real estate experts who believed buying medical office was good investment Canada: 38.5%
• Office vacancy rates in downtown Montreal: 13.2%
• Vacancy rates of office units in Canada: 15.5%
• Net absorption of office space in Canada: -0.7m sq. feet
• Volume of office space under construction in Canada: 17.32m sf

The overall office unit vacancy in Canada decreased from 13.2 percent to 10.9 percent between 2016 and 2019, but under the effects of the coronavirus (COVID-19) pandemic, vacancies spiked to record high levels. The Canadian office space net asking rent per square foot also increased from the overall stable rate of 20 Canadian dollars in previous years to over 23 Canadian dollars in 2020. Demand for prime for office space remains strong and in 2020 there was about four million square feet of new office space supplied in Canada, with about 17.3 million square feet under construction in 2021.

TORONTO

• Size of available suburban office space in Toronto: 88.83m sq. feet
• Vacancy rate of downtown office space in Toronto: 7.2%
• Asking rent per square foot of downtown office space in Toronto: 39.24 CAD

Toronto, the most populous city in Canada, has an abundance of major corporations such as Capital One, IBM, and Unilever to name a few. The majority of the office space in the city is located in the suburbs. The vacancy rates in suburban office buildings are significantly higher than the vacancy rates in the downtown office buildings, showing that the downtown offices are in higher demand.

VANCOUVER

• Size of available office space in Downtown Vancouver: 27.15m sq. feet
• Vacancy rate of downtown Vancouver office space: 5.2%
• Asking rent per square foot of office space in suburban Vancouver: 22.89 CAD

Unlike Toronto, Vancouver has most of its office space located downtown. Although Vancouver is much less populous than Toronto, it is known for being a very dense city with a thriving downtown area. Perhaps unsurprisingly, the downtown office space in Vancouver is much more expensive than the national average, at about 34 Canadian dollars per square foot.

MONTREAL

• Size of available office space in downtown Montreal: 53.34m sq. feet
• Vacancy rate of office space in Midtown Montreal: 10.6%
• Asking rent per square foot for office space in suburban Montreal: 15.09 CAD

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