Canada Real Estate Market Size, Prices, Growth & Report 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 saw major shifts in 2024 after the Bank of Canada raised interest rates to 5.0%. With higher borrowing costs, many first-time buyers struggled to qualify under the tougher mortgage stress tests. In fact, over 30% were shut out of the buying process altogether. On the other hand, buyers with cash on hand took advantage of falling prices, widening the gap between investors and average home seekers. As more people were priced out of ownership, the rental market felt the pressure-vacancy rates in cities like Toronto dropped below 1%, hitting record lows.

Across the country, home sales slowed down. Properties sat on the market much longer, with average listing times rising to 45 days, compared to just 18 days in 2022. To attract buyers, some sellers turned to vendor take-back mortgages-where the seller helps finance the deal. At the same time, financing for new housing projects got harder to secure, causing delays for more than 60,000 planned units. Still, the luxury real estate market held its ground. Prices in high-demand areas like waterfront and ski resort towns went up by 12%, as wealthy buyers benefited from strong foreign exchange conditions.

The Canada real estate market continues to closely follow central bank policies. Many are watching for even a small rate cut in 2025, which could boost demand again-but that also raises concerns about inflation. Meanwhile, policy efforts are mixed. The federal government extended its foreign buyer ban until 2026, though it hasn't had much impact on prices and has made foreign investment in new builds more complicated. Provinces are taking their own steps: B.C.'s Homes for People plan changed zoning laws to allow more multi-unit homes, Ontario introduced taxes for landowners who sit on undeveloped land, and Calgary sped up its approval process-some projects now get the green light in under 90 days.

Immigration is also adding to the housing crunch. Canada welcomed 500,000 newcomers in 2024, increasing demand for both homes and rentals. To help meet the need, modular housing is picking up pace. Quebec, for example, launched a $1.2 billion modular building program that's cutting construction times by 40%. But builders are still dealing with a labor shortage-over 100,000 skilled trade positions remain unfilled-and material prices keep rising. Lumber alone jumped 22% in the past year. While the Canada real estate market size is growing, affordability is still a huge challenge. On average, a home now costs 62% of a household's income-far above the 30% level that's considered affordable.

These problems aren't new and reflect deeper issues, like a lack of investment in mid-density housing and reliable public transit. Younger buyers are finding creative solutions, such as co-ownership arrangements. By the end of 2024, 17% of home purchases involved shared ownership. Meanwhile, older homeowners are helping family members by tapping into their home equity and creating multi-generational living spaces. Commercial real estate is struggling too. Office vacancy rates are stuck around 18%, pushing some cities to offer incentives for converting office buildings into housing. Climate risks are another concern.

In flood-prone regions like the Fraser Valley in B.C., insurance premiums have tripled, making homeownership more difficult and pushing buyers to safer areas Overall, the Canada real estate market is dealing with a mix of economic, population, and climate pressures. Growth is happening, but unevenly. Without stronger coordination between federal, provincial, and local governments, it will be tough to keep up with long-term housing needs. Moving forward, builders, policymakers, and lenders will need to work together to make both buying and renting more accessible for Canadians across the board.

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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.