Canadian home values have soared over the past three decades, with major urban centres experiencing triple-digit gains driven by population growth and shifting policy levers, according to a new REMAX Canada report.
Halifax, the Greater Toronto Area (GTA) and Saskatoon led the nation, with average prices rising between 377% and 460% since 1994. But as equity gains reward existing owners, new buyers face some of the toughest market headwinds in recent memory.
“Home ownership continues to be the greatest driver of wealth, especially at the middle-class level,” Don Kottick, president of REMAX Canada, said.
“Each generation of Canadian homeowners—from Baby Boomers to Gen Z—has faced its challenges and obstacles. Today’s trade barriers, high interest rates and stringent lending policies may be overwhelming, but this too shall pass.” Kottick added that market cycles have historically rebounded, with periods of contraction giving way to renewed growth.
Price appreciation outpaces wage growth
The global real estate franchisor’s analysis of nine major Canadian markets found that Halifax posted the highest 30-year increase, with prices up 460% (from $103,481 to $579,521, CAGR 5.91%).
The GTA followed at 436.2% (from $208,921 to $1,120,250, CAGR 5.76%), while Saskatoon saw a 377% rise (from $90,583 to $384,611, CAGR 5.35%).
In contrast, Newfoundland and Labrador trailed with a 244% gain (from $92,799 to $319,619).
Across the board, average price escalation has far outpaced wage growth, making it increasingly difficult for first-time buyers to enter the market. In the GTA, for example, average family income rose just 34.6% from $97,300 in 1994 to $131,000 in 2023, while home prices surged more than fourfold.
“Affordability, population growth and supply shortages are the recurring themes shaping residential housing in Canada,” Kottick said.
“While each market exhibits local nuances—Vancouver’s looming condo shortage, Edmonton’s affordability and Halifax’s steep climb in values—the shared pressures unite all major regions.”
Population growth strains supply
Canada’s population growth has consistently outstripped housing supply, especially during the pandemic years. Calgary and Edmonton saw population increases of 121% (from 805,810 to 1,778,881) and 87% (from 873,222 to 1,631,614) respectively from 1994 to 2024, fueled by immigration and targeted provincial campaigns.
Nationally, the country crossed the 40 million mark in 2023, but housing starts have lagged, with the Canada Mortgage and Housing Corporation warning that construction slowdowns threaten future affordability.
A chronic undersupply of homes has left Canada with the lowest number of housing units per 1,000 residents among G7 nations, according to Scotiabank.
“Supply gaps are worsening, and the pace of new construction does not bode well for the future of Canada’s housing markets,” Kottick said.
“The chronic undersupply will lock a growing number of potential buyers out of the housing market for longer and perpetuate the affordability crisis.”
Policy levers and the path forward
Government interventions, ranging from foreign buyer taxes to mortgage stress tests, have shaped market cycles, sometimes cooling overheated segments but also constraining access for new buyers.
Recent federal initiatives, such as the planned Build Canada Homes agency and $13 billion in funding for modular housing, aim to address the supply gap, but industry leaders warn that more comprehensive reforms are needed.
Despite these challenges, Canadians remain committed to home ownership. The national home-ownership rate stood at 66% in 2021, with cities like Calgary and St. John’s outperforming the average.
“Given the importance of home ownership, governments should be working to assist would-be homebuyers in the quest to realize the dream,” Kottick said.
CMP
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