A Look at Canada's New Housing Market 🏠
Statistics Canada's latest report explores the prices and trends for new homes across the country in 2024, from Vancouver to St. John's.
We're diving into a topic that affects nearly every Canadian: housing. Statistics Canada has just released a detailed report on the new housing market, looking at data collected throughout 2024. Instead of price indexes, which can be a bit abstract, this report looks at the average list prices for new homes in various cities. It gives us a snapshot of what it costs to buy a new home and what types of homes are being built.
Here’s a straightforward summary of the key findings from their report.
The Big Picture: More People, Higher Costs
The report highlights that recent population growth across Canada has added pressure to the new housing market. According to the Canada Mortgage and Housing Corporation (CMHC), housing construction needs to increase significantly to meet the projected demand.
At the same time, the cost to build has risen sharply. The report notes:
The cost to construct a residential building in Canada (CMA composite) rose 86.7% from the first quarter of 2017 to the fourth quarter of 2024.
This combination of high demand and rising costs has had a clear impact on the price of new homes across the country.
A Shift in What's Being Built
Builders are responding to affordability challenges by changing the types of homes they construct. There's a clear trend towards more density.
Condominium apartments have become the most common type of new home. They made up 45.1% of completed homes in 2024, an increase from 38.6% a decade ago in 2014.
The popularity of row houses has also grown, accounting for 18.3% of new homes in 2024, up from 13.6% in 2014.
Meanwhile, single-detached houses, while still popular, have seen their share of new builds decrease from 39.4% in 2014 to 30.4% in 2024.
How Much for a New Home? A City-by-City Snapshot
The report provides a detailed look at average new home prices in the fourth quarter of 2024. British Columbia's cities were consistently the most expensive markets surveyed. Here’s a sample of the findings:
New Single-Detached Houses:
Vancouver, BC: $1,980,000
Kelowna, BC: $1,640,000
Victoria, BC: $1,250,000
Halifax, NS: $737,200
Winnipeg, MB: $595,500
St. John's, NL: $448,200
New Row Houses:
Vancouver, BC: $1,220,000
Kelowna, BC: $1,190,000
Saskatoon, SK: $476,300
Winnipeg, MB: $433,100
Fredericton and Moncton, NB (composite): $393,000
New Condominium Apartments:
Vancouver, BC: $1,000,000
Kelowna, BC: $773,000
Halifax, NS: $597,700
Winnipeg, MB: $350,000
A Closer Look at Local Markets
The report also dives into what's happening in specific cities.
In Vancouver, high development charges and construction costs contribute to prices. Pre-sales, where units are sold long before construction is finished, are a major part of the market. Condominium apartments made up 70% of all new home completions in 2024 in the city.
In Victoria, development cost charges (DCCs) collected from developers saw a significant, non-inflationary increase in 2024. For a low-density unit, this meant an increase from $6,900 to $24,600.
Cities like Regina and Saskatoon have also seen rising construction costs. Both cities have moved to approve bylaw changes to allow for more housing density in an effort to address inventory and affordability.
An Alternative: Modular Homes
The report briefly touches on modular construction, where homes are built in a factory and assembled on-site, noting it is "gaining traction". This method can be faster than traditional on-site building.
In New Brunswick, the majority of single-detached modular homes sold in 2024 were priced between $100,000 and $200,000. These prices exclude the cost of land and site preparation.
In Nova Scotia, the most reported price range for modular homes was also $100,000 to $200,000.
This report provides a comprehensive, data-driven look at the challenges and realities of Canada's new housing market.
Which of these findings stands out the most to you? Let us know your thoughts in the comments below. 🇨🇦