The 2024 RE/MAX Canada Changing Landscapes Report, published today (Sept. 24), highlights the rise in renovation and repair spending nationwide between 2019 & 2023 to almost $300 billion, an 8% increase on the previous five-year period.
Statistics Canada data shows that the total value of building permits issued for the Toronto and Vancouver CMAs was $27 billion over 2019-2023 period, down 24% from the previous five-year period, exacerbating supply issues for new homes. This contrasts with a 60% increase for permits issued for multi-family construction.
With densification in the markets also impacting home size, including the impact of infill construction, the increasing scarcity of single-detached homes is having an oversized impact on home value.
The average price of a detached home climbed by almost 35% in the Greater Toronto Area between December 2019 and December 2023, rising from $1,052,081 to $1,418,323, while the benchmark value of a detached home in Metro Vancouver increased almost 38%, from $1,423,500 in December 2019 to $1,964,400 in December 2023.
“We expect this trend will strengthen in the years to come and serve to drive price growth in single-detached housing even further,” added Alexander. “There are a variety of variables at play, but renovation and revitalization is having significant implications for housing supply and affordability.”
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Publish date : 2024-09-24 00:11:00
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