The Average Home Prices in Canada 2024

Large cities and surrounding towns predominantly located within a short distance tend to have higher housing prices. Smaller towns still tend to be the most affordable, even though the annual increase has occurred everywhere. Let’s take a look at the average cost of residential properties in Canada and how this compares to other years. 

Average Canadian Home Prices Throughout the Years

As we head into 2024, we can see that the cost of housing has increased significantly within the last 10 years. While every year has increased influxes due to inflation, there are other factors, such as supply and demand, that also affect the cost of housing. This has caused prices to increase even more than normal in the last few years. Let’s take a look at the national average home prices and see the differences from year to year. 

As you can see, in the last 10 years, there’s been a pretty steady increase in the real estate market. That said, in some years, the average price decreases slightly. This is the case in 2015 and 2023. 

That said, though, just because the average Canadian home prices dropped in 2023 doesn’t mean that they’re going to drop again in 2024.  The Canada Mortgage and Housing Corporation (CMHC) actually predicts that the average cost of housing will start rising again. It’s predicted that the average housing price will be $694,196 in 2024 and go up to $746,410 in 2025, although we won’t know for a few more months how the trends are actually looking in 2024. You can find this information from month to month on the MLS home price index. It will show price declines, price trends, new listings, as well as national home sales.

It’s also important to note, though, that just because the cost of homes has increased, that doesn’t mean that home listings have. In 2023, the number of newly listed homes dropped every month by about 5.1%, according to national sales activity. However, home sales increased every month by around 8.7%.

Average Price of Housing Based on Province in 2024

Now that we’ve gone over the average cost of housing in Canada, it’s time to look at the average per province. This is important because each province is going to have a different average. As we break down the numbers further, they are going to be more accurate, giving you a realistic idea of what it could cost to purchase in each province in 2024. 

As you can see, BC has the highest housing cost average in all of Canada, with Ontario coming in second. The province with the lowest average cost of housing is New Brunswick. However, these numbers don’t include the entire cost of living, just the cost of housing. They also differ a lot from the latest average calculated on a national basis. 

Average Cost Based on Type of Housing

In Canada, there are different types of housing available. Each type of housing comes with its own average cost. These different types are:

• Detached houses
• Townhouses
• Bungalows
• Condos
• Apartments
• Semi-detached homes
• Manufactured homes

Let’s take a look at the average prices of each of these. 

Average Housing Price in Large Canadian Cities

Just by looking at the average housing costs per province, we can see what the most expensive Canadian provinces to live in are. That said, the major cities in these provinces tend to have much higher averages than the provincial average. Let’s take a look. 

Toronto

As of January 2024, the average housing cost in Toronto is $917,706. By the end of 2024, these prices are forecasted to go up another 6%. That said, this isn’t the case for all Ontario markets. In the greater golden horseshoe, housing prices are declining at a rate that lines up with the current firming market conditions, according to CREA. 

Vancouver

In Vancouver, the average cost of housing depends on the type of housing. The benchmark price starts at $1,185,000. That said, the average cost of a detached house is $2,123,678. The average cost of an attached home is $1,219,306, and the average cost of an apartment is $$794,211.

Edmonton

For 2024, the average cost of housing in Edmonton is expected to increase by around 4.4%. That would make the average cost $417,000. That said, though, home sales numbers are predicted to be 5% lower. 

Calgary 

In Calgary, the current average home price sits around $559,000, with a median price of $505,000. As the year continues, the benchmark home price is predicted to jump 6.5%.

Halifax

In the Halifax housing market, the prices are predicted to stay around the same as they are now. The current average price of a home in Halifax is $500,000. That said, this is a bit of a different trend for Halifax since their average price usually increases every year. 

Previous Average Housing Prices

As we’ve mentioned, housing prices in Canada vary every year, but they currently seem to be on a steady incline on an annual basis. When we looked at the increase over the last 10 years, we noticed this. However, what did the national housing market average look like before this? Well, let’s find out. 

5 Year Real Estate Forecast

In Canada, the national real estate market can fluctuate based on supply, demand and other economic factors. That said, it’s predicted that the real estate market is going to stabilize in the next 5 years. 

In 2024 alone, it’s predicted that national average rates are going to increase by 5.5%. Another increase is expected in 2025 by another 4%. One of the most significant factors that will influence the real estate market in Canada is interest rates.

Mortgage Interest Rates for 2024

Right now, in Canada, the Bank of Canada is holding their interest rate at 5%. That said, though, it is supposed to start decreasing again at some point. Inflation has fallen back down to around 3%, and housing prices aren’t increasing as rapidly as they were during the pandemic peak. 

According to economists, the Bank of Canada’s interest rate should start decreasing closer to the end of 2024 and reduce more into 2024. Once this happens, it’s predicted there will be a surge in the housing market again. This surge will be different from the one in December 2023, according to the Canadian Real Estate Association. Crea’s senior economist says the current trends in the real estate market that are starting to dwindle are from those waiting for the rates to change from the fall finally coming to terms with the fact they aren’t changing and purchasing. 

At this point in the market, though, if you’re looking to purchase, mortgage interest rates sit around 7% to 7.5%. While this is predicted to drop by the end of 2024, there are no guarantees that any drop in rates will assist in the housing market's expected recovery.

2024 Property Tax Rates

In Canada, every municipality sets their own property tax rates. In 2023, these rates increased, and they’re expected to do so again in 2024. For some municipalities this year, property tax increases will be some of the largest that they’ve ever seen. Let’s take a look at some of the proposed increases and regional differences. 

What you end up paying for your property taxes is based on home values. Your home will be assessed every year, and the total amount you owe is calculated based on that number. 

Is 2024 a Good Time to Purchase a Home?

It’s always hard to determine when the best time to purchase a home is due to the fact that the real estate market is constantly changing. That said, when we start to take a look at the market habits for the upcoming year, we can see 2024 is becoming more of a buyer's market than a seller's market, making it a more balanced market, but what does that mean exactly?

Well this means that there is less competition for potential buyers, so houses tend to stay on the market longer, and sellers are more likely to agree to buyers' conditions, according to real estate professionals. 

Another reason that 2024 could be an excellent time to buy is that mortgage rates are expected to drop. Even just .25% can be a significant savings when it comes to mortgage rates. That said, though, it isn’t predicted that rates will fall as low as they were during the pandemic, but they will start to lower. With that in mind, though, it is predicted that housing prices will increase through 2024 and 2025. 

Canada’s Housing Bubble

Have you heard of the Canadian housing bubble or the Canadian property bubble? What exactly is this? Well, this term refers to the large increase in home prices since 2022. That said, though, the long-term average housing prices in Canada have been on the increase since 2003.

However, there have been some breaks in this increase that occurred in 2008, 2017 and 2022. This is why the bubble is stated to have started in 2022. 

Housing Prices in Canada Compared to the US,

Canada is one of the most expensive countries in the world. If we compare Canadian housing prices to the US prices, prices in Canada are 40% higher, and they’re predicted to continue rising. 

While housing prices in the US have also increased in the period that Canadian housing prices have, they’ve only increased around 27%. These price increases have also seeped into the rental market in both Canada and the US. However, with that in mind, rental prices are still much higher in Canada than they are in the US. 

The Cheapest Places in Canada to Purchase a Home

If you’re looking to purchase a home in Canada, the cheapest province to purchase a home is in New Brunswick. Specifically, the cheapest place in New Brunswick is Northern New Brunswick. While the average house price in New Brunswick is $285,607, the average price of homes as of the end of 2023 is $194,862. As of December 2023, the average selling price of a home in Northern New Brunswick was $184,397. While the housing prices in New Brunswick increased, the prices in Northern New Brunswick actually decreased.

In a close second, though, for the cheapest place to purchase a home in Canada, we have Saskatchewan. The average price of a home there, as of the end of 2023, was $287,294. In Regina, though, the average cost of a home was $275,416, with housing prices still decreasing. They’re actually trending down by an average of 2.8% per month. 

In the spot for the third cheapest province to purchase a home in Canada, we have Newfoundland and Labrador. The average cost of a home as of the end of 2023 was $305,383. However, in Campbellton, NB, the median list price by the end of 2023 was $213,738. The average list price was $218,276. That said, though, prices here can go as high as $3.2 million. 

Renting in Canada

Because of the increasing cost of housing, there are many Canadians who can’t afford to purchase a home and end up renting. That said, though, rent is also quite expensive in Canada. As the housing prices increase, so does the cost of rent. 

The average cost of rent as of December was $2,178, whereas in December 2022, the average cost of rent was $2,005. However, this is the average for all types of housing. This changes a bit once we look at the breakdown of the different types of housing. 

Looking at these numbers, it’s really no surprise that a house is the most expensive. Depending on the size of your family, the cost of rent can even be much higher than these averages, and they just keep rising. 

Just in the last two years, rent prices have increased by a total of 22%. It’s not just housing prices that affect the cost of rentals, though; it’s also the demand. The current housing demand for rentals is much higher than the availability, which also continues to drive up the prices. Since the Canadian housing markets are supposed to remain strong for 2024, the cost of rent isn’t supposed to decrease and may even increase more than it already has. 

The Cost of Rent in Canada per Province

In Canada, just like housing prices, the cost of rent varies based on where you live and the size of the place you’re renting. In major cities, the cost is much higher than that in more rural areas and other cities, since these are major markets. Let’s take a look at these prices based on some well-known places throughout the country as of January 2024. 

Is it Better to Rent or Buy?

No matter what the Canadian housing market is like, whether you choose to rent or buy is based on your individual situation and preference. There are downsides to both and positives to both. That said, it used to be that at some point, everyone's goal was to purchase a home with today’s prices that isn’t always an option for everyone. However, it can be a great goal, depending on your situation and needs. 

Positives and Negatives of Purchasing

When it comes to purchasing a home, the main attraction is that you build equity and are investing in yourself. With every payment, you’re putting money into your own investment until you eventually own the whole thing. That said, though, the return on your investment can take a while to accumulate. 

When it comes to investing in a home, the longer you keep it, the higher your return is going to be, generally. It also gives you more stability and flexibility than renting. It also allows you more privacy since you can make more of your own decisions and not have to deal with a landlord. However, it can be more expensive in the short term. With ongoing maintenance costs, the cost of your mortgage and insurance costs that you usually wouldn’t pay as a renter. This leaves you with less disposable income. 

Positives and Negatives of Renting 

When it comes to renting in Canada, it can often be cheaper since a lot of the services provided and their costs are included with rent. The landlord is responsible for all maintenance costs, and you have more flexibility depending on your lease agreement. When you own, you’re committed to a place until you decide to sell. With renting, you can put in your notice and leave as long as your lease agreement allows.

However, there are some downsides to renting as well. When you pay rent, the money is going to the landlord, not yourself, so you aren’t building any equity; your landlord is. This means that the landlord is the boss. It’s a gamble as to whether or not you get a good landlord, and this can result in issues, even eviction. If you own, you don’t have to risk this. 

While you do have to consider interest rates when it comes to your mortgage payments, when renting, landlords can hike your rent, which can also affect your budget. While there are laws they have to follow, it can be daunting to go through tenancy boards to invoke your rights. 

Purchasing Your First Home in Canada

If purchasing a home in Canada in 2024 is on your mind, there are ways you can make it more affordable. However, you still have to be approved for a mortgage. Banks and lenders will do this using insured and uninsured stress tests. However, if you’re a first-time homeowner, lenders usually want you to be insured by the Canada Mortgage and Housing Corporation. 

The reason that CMHC insurance is not just an advantage to lenders but also to purchasers is that, as a first-time home buyer, it allows you to purchase a home with as little as 5% down. How CMHC insurance works is if your home is less than $500,000, then you only need 5% down. If the purchase price is over $500,000, then you pay 5% on the amount under $500,000 and 10% on the amount that’s over. If the purchase price of the home exceeds $1,000,000, then you aren’t able to get CMHC insurance and have to pay the required 20% down payment. 

That said, there is a cost with CMHC insurance. The cost is given to your lender to pay, but they usually pass that on to the buyer. As the buyer, you can add it to your mortgage amount, or you can pay it in total upfront. It’s important to remember, though, that the cost of the home isn’t the only qualification required to get approved for CMHC insurance. You must also meet the credit score requirement of 680. If more than one person is purchasing the home, then it’s only required that one buyer meets this credit score requirement. 

Overview

In Canada, the recent surge in housing prices has made it more difficult than ever for Canadians to purchase a home. That said, though, not all areas in Canada are as expensive as you may think. At the same time, Vancouver and other parts of Canada are unaffordable for many. Other parts of Canada, like New Brunswick and Newfoundland, are much more affordable. However, it’s important to remember that we have to consider not only the cost of housing but also the cost of living. 

Even if you can’t afford to purchase a home in Canada, rent prices are also costly. Currently, there is more rental demand than housing available, which is also causing an influx in rental prices. While more rental housing is being built, it can take time for it to be available. 

Whether or not you buy or rent in Canada, the cost of housing is expensive. This isn’t predicted to let up anytime soon, so it’s important to know your options. There are programs out there to help renters as well as first-time home buyers, and with mortgage interest rates predicted to lower in 2024, it may be a good time for you to consider getting in the market and speak to your local real estate agents to get an idea of your local property prices.