Residential Real Estate - Canada | Statista Market Forecast

In Canada, the Residential Real Estate market market is forecasted to reach a staggering value of US$6.55tn by 2024.
This projection is based on the anticipated annual growth rate of 4.25% from 2024 to 2029, which would result in a market volume of US$8.07tn by 2029.
When comparing the global market, it is noteworthy that China is expected to generate the highest value in the Real Estate sector, with an estimated worth of US$112.9tn by 2024.
The Canadian residential real estate market is experiencing a surge in demand due to low interest rates and an influx of foreign investment.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Canada is experiencing significant growth and development.

Customer preferences: Customers in Canada are increasingly looking for properties that offer both affordability and value for money. They are also seeking properties that are located in desirable neighborhoods with access to amenities such as schools, parks, and shopping centers. Additionally, there is a growing demand for properties that offer energy efficiency and sustainable features.

Trends in the market: One of the key trends in the Canadian Residential Real Estate market is the increasing popularity of condominiums. Condos are becoming a preferred choice for many homebuyers, especially in urban areas, due to their affordability and low maintenance requirements. This trend is driven by the rising prices of single-family homes and the desire for a more convenient lifestyle. Another trend is the growing interest in real estate investment. Many Canadians are investing in residential properties as a means of generating passive income or as a long-term investment strategy. This trend is fueled by low interest rates, favorable tax policies, and the stability of the Canadian housing market.

Local special circumstances: One of the unique factors influencing the Residential Real Estate market in Canada is the impact of immigration. Canada has a strong immigration policy and attracts a significant number of immigrants each year. This influx of new residents contributes to the demand for housing, especially in major cities like Toronto and Vancouver. As a result, the market is experiencing increased competition and rising prices in these areas. Another special circumstance is the influence of government policies and regulations. The Canadian government has implemented measures to cool down the housing market and prevent a housing bubble. These policies include stricter mortgage stress tests, foreign buyer taxes, and limitations on speculative investments. While these measures have had some impact on the market, the demand for housing continues to remain strong.

Underlying macroeconomic factors: The Residential Real Estate market in Canada is influenced by several macroeconomic factors. One of the key factors is the overall strength of the Canadian economy. When the economy is performing well, with low unemployment rates and stable economic growth, there is increased demand for housing. Conversely, during economic downturns, the demand may decrease. Interest rates also play a significant role in the Residential Real Estate market. Low interest rates make borrowing more affordable, which encourages homebuyers to enter the market. Conversely, high interest rates can deter potential buyers and slow down the market. In conclusion, the Residential Real Estate market in Canada is experiencing growth and development driven by customer preferences for affordability, value for money, and desirable locations. The market is also influenced by trends such as the popularity of condominiums and real estate investment. Special circumstances such as immigration and government policies further shape the market. Finally, macroeconomic factors like the strength of the economy and interest rates play a significant role in the market's performance.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Canada

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Community Size Split

Living Space

Methodology

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