Canada Real Estate Market Report: Competitive Landscape & Forecast

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

In 2024, the Canada Real Estate Market underwent a major shift when the Bank of Canada raised its benchmark interest rate to 5.0%. This sharp increase made mortgages harder to qualify for, especially for first-time buyers. Stricter stress tests eliminated over 30% of potential new homeowners, creating a deeper divide between individual buyers and institutional investors.

With homeownership slipping further out of reach, rental demand surged. Major urban centers like Toronto and Vancouver saw vacancy rates fall below 1%—among the lowest levels ever recorded. Meanwhile, sales slowed, and properties lingered on the market longer, with the average listing period stretching from 18 days in 2022 to 45 days in 2024. To close deals, some sellers turned to vendor take-back (VTB) mortgages as an alternative financing method.

Construction Slowdowns and Luxury Market Resilience

High borrowing costs also slowed new housing construction, with more than 60,000 planned units delayed or canceled. Despite this, luxury real estate defied broader trends. Waterfront estates and resort-area homes appreciated by 12%, driven by high-net-worth buyers and favorable currency exchange rates. This divergence highlights emerging Canada Real Estate Market Trends, where the high-end segment thrives despite overall market cooling.

Policy Shifts and Regional Responses

Governments across Canada introduced new regulations to stabilize the market. The federal ban on foreign buyers was extended to 2026, though its effect on pricing has been modest. British Columbia rolled out the “Homes for People” initiative to boost multi-unit housing, Ontario introduced a land speculation tax, and Calgary streamlined permitting, cutting timelines to under 90 days for select housing projects.

Strong population growth continues to fuel Canada Real Estate Market Growth. In 2024 alone, Canada welcomed approximately 500,000 new immigrants, intensifying demand for both rental and ownership housing. Provinces are testing innovative solutions—Quebec invested $1.2 billion into modular construction, reducing build times by 40%. However, supply remains constrained by more than 100,000 skilled labor vacancies and material cost increases, including a 22% year-over-year rise in lumber prices.

Affordability Challenges and New Ownership Models

Affordability is at its lowest point in decades, with homeowners now spending about 62% of their income on housing—more than twice the traditional 30% threshold. In response, alternative models are emerging. Co-ownership agreements are gaining traction among younger buyers, while intergenerational living, backed by parental equity, is on the rise. These changes are reshaping the Canada Real Estate Market Outlook in ways that challenge traditional ownership patterns.

The commercial property sector is also evolving. Office vacancy rates hover around 18%, prompting municipal governments to incentivize office-to-residential conversions. Climate-related risks are now influencing buyer preferences as well. In flood-prone regions like the Fraser Valley, soaring insurance premiums are prompting relocations to safer zones.

While certain regions still experience growth, the Canada Real Estate Market is becoming increasingly segmented. Addressing affordability, supply shortages, and climate resilience will require coordinated action from governments, developers, and financial institutions. If these challenges are met head-on, the industry can achieve sustainable Canada Real Estate Market Growth and deliver more accessible housing for all Canadians.

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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