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%
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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
The Canada real estate market went through one of its most challenging years in 2024. With the Bank of Canada raising its key interest rate to 5.0%, mortgage borrowing costs surged, pricing out many first-time homebuyers. Tighter stress tests meant nearly one in three applicants couldn’t qualify for a mortgage, opening the door for institutional and large-scale investors to dominate certain regions.
Home sales slowed considerably, and the average property stayed on the market for around 45 days—up from just 18 days in 2022. To keep deals moving, some sellers turned to creative solutions like vendor take-back mortgages, reflecting how affordability and financing pressures continue to shape Canada real estate market trends.
Rental Market Demand Outpacing Supply
While buying a home became harder, the rental market saw unprecedented pressure. Vacancy rates in cities such as Toronto, Vancouver, and Montreal dropped below 1%, sparking intense competition for available units. Rising construction costs forced more than 60,000 housing projects to be delayed or canceled, deepening the housing shortage.
Interestingly, the luxury housing market told a different story. High-end homes—including penthouses, lakefront estates, and urban condos—rose in value by nearly 12% in 2024, supported by affluent Canadians and international buyers. This split illustrates how Canada real estate market growth remains uneven across income levels and regions.
Government initiatives are playing a major role in shaping the Canada real estate market share. The federal ban on foreign homebuyers was extended until 2026, while provinces introduced housing-focused programs to ease the supply crisis.
British Columbia’s Homes for People program is pushing new multi-unit developments.
Ontario’s expansion of the land speculation tax aims to cool investor activity.
Calgary is streamlining approvals to speed up affordable housing construction.
Immigration remains a strong growth driver. Nearly 500,000 newcomers arrived in 2024, increasing both rental and ownership demand. To respond, Quebec allocated $1.2 billion toward modular housing to cut construction timelines and expand capacity.
Affordability Challenges and New Housing Models
Housing affordability continues to be the biggest concern in the Canada real estate market outlook. Canadians are now spending an average of 62% of their income on housing—well above recommended levels. As a result, many are exploring new ownership structures like co-buying among friends, intergenerational homes, and family-backed purchases.
In the commercial real estate segment, office vacancy rates have climbed to about 18%, leading several cities to convert office towers into residential units. Climate-related factors are also shaping decisions, with some families leaving high-risk flood zones in the Fraser Valley and Atlantic Canada due to insurance and infrastructure challenges.
Canada Real Estate Market Trends and Key Players
Key developers and brokerages continue to define Canada real estate market trends. Companies such as Brookfield Asset Management, Tridel, Mattamy Homes, RE/MAX Canada, Royal LePage, and Colliers International remain central to shaping new projects, urban planning, and housing accessibility. These firms are focusing on mixed-use communities, energy-efficient designs, and rental housing development to adapt to shifting consumer needs and sustainability goals.
Canada Real Estate Market Report & Outlook 2025-2033
Looking ahead, the Canada real estate market report shows a mixed yet resilient picture. While affordability issues and construction delays will continue to challenge buyers, demand in the rental and luxury sectors remains robust. Developers and policymakers are prioritizing sustainable growth, housing innovation, and climate adaptation to meet national housing goals.
Despite short-term uncertainty, the long-term Canada real estate market growth outlook remains positive. As affordability reforms take shape and immigration-driven demand continues, Canada’s real estate sector is expected to gradually stabilize—positioning it for steady, balanced growth in the years ahead.
Canada Real Estate Market Segmentation:
The market report segments the market based on product type, distribution channel, and region:
Breakup by Property Type:
Residential Buildings and Dwellings
Commercial Complexes
Industrial Infrastructure
Government Infrastructure
Breakup by Business:
Sales
Rental
Lease
Breakup by Region:
Ontario
Quebec
Alberta
British Columbia
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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