The Canadian residential real estate market is steadily skewing towards the higher end of the spectrum as the would-be buyer is now getting far less house for their money, according to a new Point2 Homes report.
The new study – which analysed the country’s 50 largest metropolitan markets to find out the number of bedrooms the national average home price ($495,100) can buy in each – found that in half of the markets studied, the price tag is worth less than 3 bedrooms.
More importantly, in the 6 most expensive cities in Canada, the national average doesn’t even secure 2 bedrooms. The price gets only 1.9 rooms in Vaughan and Richmond Hill, both in Ontario; 1.7 rooms in Coquitlam, BC; 1.6 rooms in Richmond and Burnaby, both in British Columbia as well; and just 1 bedroom in red-hot Vancouver, where the average price is now sitting at $1,480,712.
“It’s also worth noting that in a thoroughly unaffordable market such as Vancouver, $495,100 will most likely buy one bedroom that is part of a larger condo or home, meaning buyers need to spend significantly more to own a full residence, be that a detached house or a condo,” the Point2 Homes analysis added.
Read more: Accelerated price growth evident in 75% of Toronto markets – study
The best bang for a home buyer’s buck is Windsor, ON, which offers 4.3 rooms for the national average price. Quebec also has three markets that offer 4 bedrooms and above: Terrebonne (4.2 rooms), Sherbrooke (4.1 rooms), and Levis (4 rooms).
This trend has pushed condos towards being the top choice for Canadian households, Point2 Homes stated.
“The accelerated price growth, paired with Boomers’ downsizing and Millennials’ preference for 24/7 urban living, has contributed to a significant shift in home building trends. Two out of three new homes built today are multifamily properties – by comparison, fewer than half of new developments were condos in the mid-2000s,” according to the analysis.
“This shift means that multifamily buildings are now the new norm in cities and developers are making efforts not to compromise on space and comfort, while also transitioning towards stacked living.”
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