Canada Real Estate Market Size, Growth & Report 2033
Market Overview 2025-2033
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. The market is growing due to increased homebuying activity, supportive policy changes, and sustained immigration. Growth is driven by affordability measures, suburban migration, and digital transaction platforms, making the industry more accessible, resilient, and competitive.
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
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Canada Real Estate Market Trends and Drivers:
The Canada real estate market saw major changes in 2024 after the Bank of Canada raised interest rates to 5.0%. This increase made it much harder for first-time buyers to qualify for mortgages due to stricter stress tests. In fact, more than 30% of potential new buyers were pushed out of the market altogether. As homeownership became less affordable, those with cash on hand used the opportunity to buy at lower prices—widening the gap between investors and average buyers.
With fewer people able to buy homes, demand shifted toward the rental market. In major cities like Toronto and Vancouver, vacancy rates dropped to record lows—falling below 1%. At the same time, national home sales slowed down significantly. Properties stayed on the market much longer, with average listing times increasing from 18 days in 2022 to 45 days in 2024. To encourage deals, some sellers began offering vendor take-back mortgages.
New housing construction also took a hit, as higher interest rates made financing more expensive. Over 60,000 planned housing units were delayed or put on hold. Despite this, the luxury real estate segment remained strong. Waterfront and resort areas saw home prices jump by 12%, driven by wealthy buyers and favorable exchange rates.
Policy changes are also shaping the market. The federal government extended the foreign buyer ban to 2026, though it hasn’t had much impact on overall pricing. Provinces are stepping in with their own solutions. British Columbia’s “Homes for People” plan changed zoning laws to allow more multi-unit housing. Ontario added a tax on land banking to discourage speculation, while Calgary fast-tracked approvals, cutting wait times to under 90 days for some projects.
Canada’s fast-growing population is adding pressure. In 2024, the country welcomed 500,000 new immigrants, increasing demand for both ownership and rentals. To ease the strain, some provinces are turning to modular housing. Quebec’s $1.2 billion program has shortened construction timelines by 40%. Still, the sector faces hurdles—over 100,000 skilled trades positions remain unfilled, and material costs continue to climb. Lumber prices alone rose by 22% over the past year.
Affordability remains a serious concern. The average home now costs around 62% of a household’s income, far beyond the 30% affordability benchmark. To cope, some younger buyers are choosing co-ownership arrangements, while older homeowners are helping family members buy or creating multi-generational living spaces.
Commercial real estate faces its own set of challenges. Office vacancies remain at 18%, prompting some cities to offer incentives for converting offices into residential units. Environmental risks are also influencing buying decisions. In flood-prone regions like British Columbia’s Fraser Valley, insurance premiums have tripled, pushing buyers toward safer areas. Overall, the Canada real estate market growth continues to grow—but unevenly. Solving the housing crisis will require stronger cooperation among governments, developers, and lenders to create affordable, accessible options for all Canadians.
Canada Real Estate Market Segmentation:
The market report segments the market based on product type, distribution channel, and region:
Study Period:
Base Year: 2024
Historical Year: 2019-2024
Forecast Year: 2025-2033
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
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.
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