Very few people could have predicted this time last year that a pandemic would change just about everything about our lives. One thing it didn’t change is the need for housing and contrary to what some predicted, the Canadian housing bubble didn’t burst. On the contrary. So what does the coming year have in store for us? One thing we’ve learned from 2020 is that nothing is certain. However, we scoured the many different market forecasts and compiled a list of the key takeaways. Here’s what to expect for the Canadian real estate market in 2021.
Real Estate
What to Expect for the Canadian Real Estate Market in 2021
February 8, 2021
Very few people could have predicted this time last year that a pandemic would change just about everything about our lives. One thing it didn’t change is the need for housing and contrary to what some predicted, the Canadian housing bubble didn’t burst. On the contrary. So what does the coming year have in store for us? One thing we’ve learned from 2020 is that nothing is certain. However, we scoured the many different market forecasts and compiled a list of the key takeaways. Here’s what to expect for the Canadian real estate market in 2021.
-
Prices Will Generally Continue to Rise
1/10Prices Will Generally Continue to Rise
1/10Photo Credit: Getty Images
The Canada housing bubble is not about to burst just yet. Towards the end of 2020, real estate agents in many parts of the country saw unprecedented sales and record-breaking prices. The experts expect the trend to continue and housing prices will keep on rising, especially if the economy continues to recover and interest rates remain low. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/what-500k-can-buy-in-canada-1927050/" rel="noopener" target="_blank">Here's What $500K Can Buy Throughout Canada</a>Real EstateWhat to Expect for the Canadian Real Estate Market in 2021Prices Will Generally Continue to Rise
PHOTO 1 of 10READ LESS -The Canada housing bubble is not about to burst just yet. Towards the end of 2020, real estate agents in many parts of the country saw unprecedented sales and record-breaking prices. The experts expect the trend to continue and housing prices will keep on rising, especially if the economy continues to recover and interest rates remain low. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/what-500k-can-buy-in-canada-1927050/" rel="noopener" target="_blank">Here's What $500K Can Buy Throughout Canada</a>Photo Credit: Getty Images
-
Canadians Will Keep Driving the Market
2/10Canadians Will Keep Driving the Market
2/10Photo Credit: Getty Images
While some experts thought that closing Canada’s borders would lead to a crash in the real estate market, especially in cities like Vancouver, the drop in foreign buyers didn’t have a huge impact on the market overall. Canadians filled the gap and <a href="https://www.hgtv.ca/real-estate/photos/bought-home-during-covid-19-pandemic-lessons-1940377/" rel="noopener" target="_blank">bought homes during the Covid-19 pandemic</a>. They will continue to do so in 2021: many have built up their savings by not going on vacations or spending money on clothing, eating out and the like.Real EstateWhat to Expect for the Canadian Real Estate Market in 2021Canadians Will Keep Driving the Market
PHOTO 2 of 10READ LESS -While some experts thought that closing Canada’s borders would lead to a crash in the real estate market, especially in cities like Vancouver, the drop in foreign buyers didn’t have a huge impact on the market overall. Canadians filled the gap and <a href="https://www.hgtv.ca/real-estate/photos/bought-home-during-covid-19-pandemic-lessons-1940377/" rel="noopener" target="_blank">bought homes during the Covid-19 pandemic</a>. They will continue to do so in 2021: many have built up their savings by not going on vacations or spending money on clothing, eating out and the like.Photo Credit: Getty Images
-
More People Are Buying Outside of the Big Cities
3/10More People Are Buying Outside of the Big Cities
3/10Photo Credit: Getty Images
According to real estate statistics Canada saw more people starting to move out of the big cities to the more affordable suburbs and smaller towns even before the pandemic hit. With many companies opting to stick with the work-from-home model for their employees, this trend will become stronger.Real EstateWhat to Expect for the Canadian Real Estate Market in 2021More People Are Buying Outside of the Big Cities
PHOTO 3 of 10READ LESS -According to real estate statistics Canada saw more people starting to move out of the big cities to the more affordable suburbs and smaller towns even before the pandemic hit. With many companies opting to stick with the work-from-home model for their employees, this trend will become stronger.Photo Credit: Getty Images
-
Prices Will Rise in Traditionally More Affordable Areas
4/10Prices Will Rise in Traditionally More Affordable Areas
4/10Photo Credit: Getty Images
The Toronto housing crisis has already driven people <a href="https://www.hgtv.ca/real-estate/blog/pandemic-people-leaving-cities-for-suburbs-and-rural-areas-1943457/" rel="noopener" target="_blank">to start considering smaller cities and towns</a> in Southern Ontario. In other housing markets, such as Vancouver and Montreal, there is a similar trend towards leaving the cities for suburbs and rural areas, that’s expected to continue. If you thought that only the big cities will continue to experience a housing bubble, Canada has many smaller markets that may just prove you wrong, with prices now rising in areas that have traditionally been more affordable.Real EstateWhat to Expect for the Canadian Real Estate Market in 2021Prices Will Rise in Traditionally More Affordable Areas
PHOTO 4 of 10READ LESS -The Toronto housing crisis has already driven people <a href="https://www.hgtv.ca/real-estate/blog/pandemic-people-leaving-cities-for-suburbs-and-rural-areas-1943457/" rel="noopener" target="_blank">to start considering smaller cities and towns</a> in Southern Ontario. In other housing markets, such as Vancouver and Montreal, there is a similar trend towards leaving the cities for suburbs and rural areas, that’s expected to continue. If you thought that only the big cities will continue to experience a housing bubble, Canada has many smaller markets that may just prove you wrong, with prices now rising in areas that have traditionally been more affordable.Photo Credit: Getty Images
-
Atlantic Canada is a Hot Real Estate Market; The Prairies Are Not
5/10Atlantic Canada is a Hot Real Estate Market; The Prairies Are Not
5/10Photo Credit: Getty Images
Canadians have not only been moving to more affordable suburbs but have also been moving to more affordable provinces. Atlantic Canada is now a hot real estate market, especially Greater Moncton, Halifax, Saint John and Charlottetown. The Prairies, however, have been struggling, partly because of the economic woes of the oil and gas industry. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/how-much-down-payment-buy-home-canadian-cities-1933810/" rel="noopener" target="_blank">Do You Have Enough of a Down Payment to Buy a Home in These 15 Canadian Cities?</a>Real EstateWhat to Expect for the Canadian Real Estate Market in 2021Atlantic Canada is a Hot Real Estate Market; The Prairies Are Not
PHOTO 5 of 10READ LESS -Canadians have not only been moving to more affordable suburbs but have also been moving to more affordable provinces. Atlantic Canada is now a hot real estate market, especially Greater Moncton, Halifax, Saint John and Charlottetown. The Prairies, however, have been struggling, partly because of the economic woes of the oil and gas industry. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/how-much-down-payment-buy-home-canadian-cities-1933810/" rel="noopener" target="_blank">Do You Have Enough of a Down Payment to Buy a Home in These 15 Canadian Cities?</a>Photo Credit: Getty Images
-
People Want Detached Homes
6/10People Want Detached Homes
6/10Photo Credit: Getty Images
A definite trend in the Canadian real estate market is that more buyers are looking for detached homes. One of the reasons for this is that with the move towards working from home, more people are looking for rooms that they can <a href="https://www.hgtv.ca/decorating/photos/home-office-next-level-1940501/" rel="noopener" target="_blank">convert into home offices</a>. They also want backyards where they can garden and enjoy some fresh air.Real EstateWhat to Expect for the Canadian Real Estate Market in 2021People Want Detached Homes
PHOTO 6 of 10READ LESS -A definite trend in the Canadian real estate market is that more buyers are looking for detached homes. One of the reasons for this is that with the move towards working from home, more people are looking for rooms that they can <a href="https://www.hgtv.ca/decorating/photos/home-office-next-level-1940501/" rel="noopener" target="_blank">convert into home offices</a>. They also want backyards where they can garden and enjoy some fresh air.Photo Credit: Getty Images
-
Downtown Condos Are Not Popular Anymore
7/10Downtown Condos Are Not Popular Anymore
7/10Photo Credit: Getty Images
One corner of the Canada housing market that isn’t expected to see growth is the market for one-bedroom condos downtown. In fact, prices for condos have seen a decline and now isn’t the time to sell. If you have some money to spare and want to speculate, though, this is a good year to buy a condo before the Toronto housing bubble makes downtown real estate unaffordable again. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/toronto-condos-400k-looks-like-1945605/" rel="noopener" target="_blank">This is What Toronto Condos Priced at $400K or Less Look Like</a>Real EstateWhat to Expect for the Canadian Real Estate Market in 2021Downtown Condos Are Not Popular Anymore
PHOTO 7 of 10READ LESS -One corner of the Canada housing market that isn’t expected to see growth is the market for one-bedroom condos downtown. In fact, prices for condos have seen a decline and now isn’t the time to sell. If you have some money to spare and want to speculate, though, this is a good year to buy a condo before the Toronto housing bubble makes downtown real estate unaffordable again. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/toronto-condos-400k-looks-like-1945605/" rel="noopener" target="_blank">This is What Toronto Condos Priced at $400K or Less Look Like</a>Photo Credit: Getty Images
-
Inventory Will Drop
8/10Inventory Will Drop
8/10Photo Credit: Getty Images
With a booming real estate industry, Canada will see a rise in housing prices partly because inventory will drop. Condo owners may prefer to hold out until the nightlife returns to downtown areas and their properties become more valuable again, while owners of detached family homes may decide not to sell because they’re happy with what they have. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/sell-home-summer-best-outdoor-investments-1938888/" rel="noopener" target="_blank">Listing Your Home This Summer? Here Are the Best Investments to Make Outdoors</a>Real EstateWhat to Expect for the Canadian Real Estate Market in 2021Inventory Will Drop
PHOTO 8 of 10READ LESS -With a booming real estate industry, Canada will see a rise in housing prices partly because inventory will drop. Condo owners may prefer to hold out until the nightlife returns to downtown areas and their properties become more valuable again, while owners of detached family homes may decide not to sell because they’re happy with what they have. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/sell-home-summer-best-outdoor-investments-1938888/" rel="noopener" target="_blank">Listing Your Home This Summer? Here Are the Best Investments to Make Outdoors</a>Photo Credit: Getty Images
-
Purpose-built Rental Housing is a Good Long-term Option
9/10Purpose-built Rental Housing is a Good Long-term Option
9/10Photo Credit: Getty Images
Purpose-built rental housing is not an option that is guaranteed to bring in money right away, as it has been in the past. However, it’s a good long-term investment because when universities reopen and immigration picks up again, the demand for rental accommodation will increase. <br><br> Related: <a href="https://www.hgtv.ca/scott-mcgillivray/photos/airbnb-vs-renting-income-property-scott-mcgillivray-1928888/" rel="noopener" target="_blank">Airbnb vs. Renting for an Income Property: Scott McGillivray Weighs In</a>Real EstateWhat to Expect for the Canadian Real Estate Market in 2021Purpose-built Rental Housing is a Good Long-term Option
PHOTO 9 of 10READ LESS -Purpose-built rental housing is not an option that is guaranteed to bring in money right away, as it has been in the past. However, it’s a good long-term investment because when universities reopen and immigration picks up again, the demand for rental accommodation will increase. <br><br> Related: <a href="https://www.hgtv.ca/scott-mcgillivray/photos/airbnb-vs-renting-income-property-scott-mcgillivray-1928888/" rel="noopener" target="_blank">Airbnb vs. Renting for an Income Property: Scott McGillivray Weighs In</a>Photo Credit: Getty Images
-
Commercial and Industrial Property Will Focus On e-Commerce
10/10Commercial and Industrial Property Will Focus On e-Commerce
10/10Photo Credit: Getty Images
The Canadian real estate market forecast for commercial and industrial property is that rental prices will continue to rise sharply as retailers are trying to find high-quality spaces for facilitating e-commerce. With many retailers closing their brick-and-mortar outlets and moving online, malls may have to convert some of their retail space into warehousing, distribution and fulfillment spaces to stay afloat. The demand for suitable spaces means that multi-level industrial properties may become more prevalent throughout Canada too.Real EstateWhat to Expect for the Canadian Real Estate Market in 2021Commercial and Industrial Property Will Focus On e-Commerce
PHOTO 10 of 10READ LESS -The Canadian real estate market forecast for commercial and industrial property is that rental prices will continue to rise sharply as retailers are trying to find high-quality spaces for facilitating e-commerce. With many retailers closing their brick-and-mortar outlets and moving online, malls may have to convert some of their retail space into warehousing, distribution and fulfillment spaces to stay afloat. The demand for suitable spaces means that multi-level industrial properties may become more prevalent throughout Canada too.Photo Credit: Getty Images
