Canadian Real Estate Market Overview (2025)
- The Canadian real estate sector is estimated to generate US$200–195 billion in total market revenue for 2024–2025.
- Forecasts expect the industry to grow to about US$260–265 billion by 2030, reflecting a healthy growth rate of around 5% annually.
- The residential component represents the bulk of activity, with a total market value projected around US$6.8 trillion in 2025 (largely based on estimated valuation across all properties).
- Estimated value in 2025: ~US$6.8 trillion
- Forecast CAGR: around 4–5% through 2029
- Residential units account for 60–70% of overall market activity, with condominiums and apartments growing fastest.
- Commercial real estate expected at approximately US$83 billion in 2025, with projected growth to over US$100 billion by 2030.
- Revenue from brokerage, property sales, and related services is forecast to be around US$31 billion in 2025, rising to nearly US$39–40 billion by 2030.
- Historical immigration-led population growth has driven strong housing demand across major urban centres.
- With government caps starting in early 2025, demand remains elevated but may moderate slightly going forward.
- Ongoing housing undersupply continues to fuel price appreciation—though a near-term glut from recently completed condos is easing pressure in some markets.
- Housing starts are expected to decline modestly in 2025, after surging in provinces like Alberta.
- National average home price expected to rise by around 4–5% in 2025, reaching approximately CAD 720,000 (approx. US$530–540K).
- In hot markets like Toronto, prices may climb up to 5% to around CAD 1,225,770, while condos in some regions may see flat or even decreasing values.
- Governments are encouraging housing development through zoning reforms, rental incentives, new tax breaks, and support for first-time buyers.
- A two-year ban on foreign buyers expired in 2025, but foreign ownership had already declined to around 1%, limiting its effect on prices.
- Home resales rebounded around 9% in 2024, with roughly 484,000 residential sales across the country. Projections indicate these could rise another 8.5% in 2025.
- Investment activity surged in late 2024, with quarterly transaction volumes rising over 60% year-on-year to reach record levels—especially in urban and resort regions.