Canada Condominiums and Apartments Market Size

Canada Condominiums and Apartments Market Analysis

The Canada Condominiums and Apartments Market is currently valued at around USD 100 billion and is anticipated to register a CAGR of more than 8% during the forecast period. The rising demand for affordable housing is driving the market. Furthermore, the market is propelled by first-time buyers looking for different types of properties in the country.

• Condominium market share increased in major urban areas across the country this year, reflecting new market realities and the changing path of entry-level buyers. Condominium sales fell in four markets in the first eight months of 2022: Greater Vancouver/Fraser Valley, Greater Toronto, Ottawa, and Nova Scotia, while Calgary and Edmonton saw double-digit sales increases over the same period in 2021. Condo values are up year over year in almost all markets, with many boosted by a strong first quarter of 2022. The key issue in today's housing market is affordability. Rising interest rates gradually eroded purchasing power, and despite lower housing values and cooling market conditions, purchasing a home is now more difficult than ever.
• Given sharp double-digit increases in rental rates across the major markets, particularly in BC and Ontario, the cost of carrying a mortgage versus renting is now more comparable for those who adjusted expectations with each rate hike. As a result, while there were fewer sales in 2022, condominiums accounted for a higher proportion of total sales, as buyers sought more affordable options to achieve home ownership. In most major urban areas, condominium prices remained stable or increased yearly. Overall, conditions are balanced, so buyers and sellers with realistic expectations should be able to meet their goals. Buyers can take a breather in Canada's active condominium market for the most part, as the heated momentum of recent years cooled with inflationary pressures, shifting conditions into more balanced territory. This equilibrium created a once-in-a-lifetime opportunity for those willing and able to act. It ranges from first-time buyers looking to establish a foothold in the market to move-up buyers and empty nesters. It is being seen all over the place.
• Condominiums in suburban areas are the most popular among today's buyers. Over the last eight months, areas such as Saddle Ridge, Panorama Hills, Currie Barracks, and McKenzie Town saw strong demand, with condominium apartment sales doubling year on year. Saddle Ridge, Panorama Hills, Currie Barracks, Garrison Woods, and Killarney/Glengary increased double-digit values. However, as people continued to work from home, the demand for condominium apartments in the city's downtown core remained lukewarm. It changed in the following months as more people returned to work in the downtown core. Out-of-province buyers from British Columbia and Ontario continued to pour into Calgary and invest in the city's housing stock.
• While buyers are aware of the Bank of Canada's interest rate increase, they are also acutely aware of market conditions changing. The transition from a seller's market to a more balanced environment gave many buyers plenty of breathing room. It is at a time when there is a good selection of condominium products available in various price points and neighborhoods, sellers are more willing to negotiate, and overall market conditions are favorable. Three months' worth of inventory is currently available for sale, and sellers discovered that days on the market are increasing. Most buyers believe the worst is over, and with some minor adjustments on the way, volatility should be kept to a minimum.