IMARC Group has recently released a new research study titled “Canada Real Estate Market Report by Property Type (Residential Buildings and Dwellings, Commercial Complexes, Industrial Infrastructure, Government Infrastructure), Business (Sales, Rental, Lease), and Region 2025-2033,” which offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends, and competitive landscape to understand the current and future market scenarios.
Canada Real Estate Market Overview
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.
Market Size and Growth
Base Year: 2024
Forecast Years: 2025-2033
Historical Years: 2019-2024
Market Size in 2024: USD 183.8 Billion
Market Forecast in 2033: USD 231.5 Billion
Market Growth Rate 2025-2033: 2.60%
Request for a sample copy of the report: https://www.imarcgroup.com/canada-real-estate-market/requestsample
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
Canada Real Estate Market Trends
In 2024, the Canada Real Estate Market experienced a dramatic shift when the Bank of Canada raised its benchmark interest rate to 5.0%. This sharp increase made mortgage qualification significantly harder, particularly for first-time buyers. Stricter stress tests pushed more than 30% of potential new homeowners out of the market, widening the gap between individual buyers and institutional investors.
With homeownership becoming increasingly unattainable, rental demand surged. Major urban hubs such as Toronto and Vancouver saw vacancy rates drop below 1%, reaching historic lows. At the same time, home sales slowed, and the average listing period lengthened from 18 days in 2022 to 45 days in 2024. To close deals, some sellers turned to vendor take-back (VTB) mortgages as an alternative financing method.
Construction Delays and Luxury Market Resilience
Higher borrowing costs also stalled new housing projects, with over 60,000 planned units either delayed or canceled. However, luxury real estate bucked the trend—waterfront estates and resort-area homes appreciated by 12%, fueled by high-net-worth buyers and favorable exchange rates. This contrast underscores evolving Canada Real Estate Market Trends, where the premium segment remains strong despite overall market cooling.
Governments at all levels introduced measures to stabilize the market. The federal ban on foreign buyers was extended to 2026, though its direct impact on pricing has been limited. British Columbia implemented the Homes for People initiative to expand multi-unit housing, Ontario rolled out a land speculation tax, and Calgary reduced permitting times to under 90 days for select developments.
Population Growth and Supply Pressures
Strong immigration continues to expand the Canada Real Estate Market Size. In 2024 alone, approximately 500,000 new immigrants arrived, increasing demand for both ownership and rental properties. Provinces are testing innovative solutions—Quebec invested $1.2 billion in modular construction, cutting build times by 40%. Still, shortages in skilled labor (over 100,000 vacancies) and rising material costs—such as a 22% year-over-year jump in lumber prices—continue to strain supply.
Affordability Challenges and New Ownership Models
Affordability has reached record lows, with the average homeowner now spending around 62% of their income on housing—more than double the standard 30% threshold. As a result, alternative ownership models are emerging. Co-ownership agreements are gaining popularity among younger buyers, while intergenerational living arrangements, supported by parental equity transfers, are on the rise. These shifts are reshaping the Canada Real Estate Market Outlook, challenging traditional ownership norms.
The commercial sector is also evolving. Office vacancy rates remain high at roughly 18%, prompting municipalities to incentivize office-to-residential conversions. Climate-related risks are becoming a key factor in buyer decisions, with flood-prone regions like the Fraser Valley seeing insurance premiums soar, prompting relocation to safer zones.
Outlook: Building a Sustainable Future
While certain regions are still experiencing growth, the Canada Real Estate Market is becoming increasingly segmented. Addressing affordability challenges, supply shortages, and climate resilience will require coordinated action between governments, developers, and financial institutions. If these issues are tackled effectively, the market can sustain Canada Real Estate Market Growth and deliver more accessible housing options for Canadians across all income levels.
Canada Real Estate Market Segmentation:
The market report segments the market based on product type, distribution channel, and region:
Breakup by Property Type:
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Residential Buildings and Dwellings
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Commercial Complexes
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Industrial Infrastructure
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Government Infrastructure
Breakup by Business:
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Sales
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Rental
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Lease
Breakup by Region:
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Ontario
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Quebec
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Alberta
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British Columbia
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Others
Ask Analyst & Browse Full Report with TOC & List of Figures: https://www.imarcgroup.com/request?type=report&id=25484&flag=C
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.
Key Highlights of the Report
1. Market Performance (2019-2024)
2. Market Outlook (2025-2033)
3. COVID-19 Impact on the Market
4. Porter’s Five Forces Analysis
5. Strategic Recommendations
6. Historical, Current and Future Market Trends
7. Market Drivers and Success Factors
8. SWOT Analysis
9. Structure of the Market
10. Value Chain Analysis
11. Comprehensive Mapping of the Competitive Landscape
About Us:
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.
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