Canada Real Estate Market Size, Growth & Industry Forecast 2025-2033

Market Overview 2025-2033

The Canada real estate market size reached USD 183.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 231.5 Billion by 2033, exhibiting a growth rate (CAGR) of 2.60% during 2025-2033. The market is growing due to increased homebuying activity, supportive policy changes, and sustained immigration. Growth is driven by affordability measures, suburban migration, and digital transaction platforms, making the industry more accessible, resilient, and competitive.

Key Market Highlights:

✔️ Strong market activity driven by population growth and urban development in major cities
✔️ Increasing demand for affordable housing and sustainable building practices
✔️ Expanding investments in smart infrastructure and mixed-use developments across residential and commercial sectors

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Canada Real Estate Market Trends and Drivers:

The Canada real estate market experienced significant disruption in 2024 as the Bank of Canada raised interest rates to 5.0%. Higher borrowing costs created a divided market: many first-time buyers failed to meet stricter mortgage stress tests, excluding more than 30% from qualifying for home purchases. Meanwhile, cash-ready investors capitalized on falling prices. This growing divide pushed rental demand to record levels, with vacancy rates dropping below 1% in major cities such as Toronto.

Home sales slowed across the country. Average listing times rose to 45 days, more than double the 18-day average in 2022. To attract buyers, some sellers turned to vendor take-back mortgages. Financing for new developments also became more difficult, causing delays for over 60,000 housing units that had been in the planning pipeline. In contrast, the luxury segment held steady. Property prices in waterfront and ski resort locations rose by 12%, as high-net-worth buyers benefited from favorable exchange rates.

The Canada real estate market growth remains closely tied to central bank decisions. A single rate cut in 2025 could reignite demand, but also raises concerns about inflation. Policy responses vary. While the federal government extended the foreign buyer ban through 2026, the move has had limited effect on prices and is seen as a deterrent to foreign investment in new developments Provinces have taken their own actions to increase housing supply. British Columbia's Homes for People plan amended zoning regulations to allow more multi-unit buildings. Ontario introduced new taxes targeting landowners who delay development. In Calgary, municipal authorities are speeding up approval timelines, with some projects now clearing within 90 days.

Population growth is adding pressure. Canada welcomed 500,000 immigrants in 2024, further straining housing and rental availability. Modular construction is gaining traction as a faster alternative, with Quebec's $1.2 billion modular housing initiative reducing build times by 40%. However, the sector faces persistent labor shortages, with over 100,000 vacancies in skilled trades. Rising material costs also pose challenges-lumber prices alone have climbed 22% year-over-year. The Canada real estate market size is expanding, but affordability remains a critical issue. The average home now costs 62% of a household's median income-more than double the 30% affordability benchmark.

These challenges stem from long-standing structural issues, including underinvestment in mid-density housing and public transit infrastructure. Some younger buyers are turning to co-ownership models; by 2024, 17% of homes were purchased through shared ownership. Older homeowners are supporting multi-generational living by leveraging home equity. Commercial real estate is also under pressure. Office vacancy rates remain near 18%, prompting several cities to offer incentives for office-to-residential conversions. Environmental risks are influencing property values as well.

In flood-prone areas like B.C.'s Fraser Valley, insurance premiums have risen by 300%, pushing homebuyers to seek safer ground. Overall, the Canada real estate market continues to face a mix of economic, demographic, and environmental pressures. Growth remains uneven across regions, and without coordinated action from federal and provincial governments, development gaps are likely to persist. Meeting long-term housing needs will require cooperation between policymakers, builders, and financial institutions to expand both ownership and rental options in a sustainable manner.

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Canada Real Estate Market Segmentation:

The market report segments the market based on product type, distribution channel, and region:

Study Period:

Base Year: 2024
Historical Year: 2019-2024
Forecast Year: 2025-2033

Breakup by Property Type:

• Residential Buildings and Dwellings
• Commercial Complexes
• Industrial Infrastructure
• Government Infrastructure

Breakup by Business:

• Sales
• Rental
• Lease

Breakup by Region:

• Ontario
• Quebec
• Alberta
• British Columbia
• Others
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Competitive Landscape:

The market research report offers an in-depth analysis of the competitive landscape, covering market structure, key player positioning, top winning strategies, a competitive dashboard, and a company evaluation quadrant. Additionally, detailed profiles of all major companies are included.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services.

IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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This release was published on openPR.