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Is The Canadian Real Estate Market Safe To Invest?


Canada is full of some of the most beautiful places on earth and some of the most impressive homes. It’s one of the best places to find houses and properties ready for building. If you’ve ever questioned whether or not the real estate market is safe in this beautiful country, keep reading to find out the answer!

What makes a safe real estate market?

A safe real estate market is a market that has diversity, longevity, and availability. These are some of the most important things that make up a well-rounded market that is safe for investing in. Let’s take a look at what these terms mean for real estate. 

Diversity: You need to have a wide range of homes and people in your market to consider it diverse. You want people from every income level so you can sell luxury homes and have an excellent rental market. You also want a wide range of home styles, so people have more options to choose from instead of an apartment or a basic planned home build. 

Longevity: Some housing markets end up being short-lived for many reasons. You want a market that has seen an upward or steady trend over the last few decades for it to be considered a healthy market you can rely on. Studying numbers from the last few years will give you an idea of the current market, but you need to look further back to see if the city has remained that way.

Availability: If the homes are not there for people to buy, the market will stall. Some places have found it challenging to maintain the construction and provide their residents with new homes. Canada has one of the best sources of lumber and building supplies in the world, so the country has been able to handle the high demand for housing. 

Canada has had a steady market with record sales in 2020 and 2021, and it keeps getting better and better. Housing costs are up 25%, and experts predict that the market will likely cool down in the next year with the rising inflation rates. The rental market has also risen, with the rental price coming up about 6% in the last year, and this is also expected to continue rising with the extra costs Canadians have been facing. 

What is the best investment option?

The country has seen a decrease in commercial real estate and luxury homes, but they have seen a significant jump in people looking for affordable homes. “One of the best options you have to get a steady return is to look into multi-family real estate or single-family homes,” says Vancouver real estate agent Greg Covell.

These two markets are in extremely high demand in most of the country. With increased mortgage rates and a lack of affordable housing, a large number of Canadians have had to downgrade to renting or switch from a larger unit to a smaller one in order to save money. Those people are looking for smaller homes and apartments, and they will pay a higher rental fee if the market is in demand. 

Homeownership has started to become a dream more than a reality for people who are on lower income levels, but the mortgage rates will likely be adjusting slowly over time to help with that. Townhouses are also on the rise, with residents choosing to live in a more affordable unit, and overpaying a large mortgage for a home with smaller square footage. Additionally, many cities have started adjusting their building regulations to allow companies to buy and repurpose space into residential homes much easier than before. 

What does the future look like for Canada’s real estate market?

The housing market in Canada is ever-changing, but all the experts are predicting a slow shift into lower-priced homes. For investors that are looking to buy multiple properties, this is precisely what you want to hear. If you are looking to invest now, look for low-cost multi-family homes or buildings and invest some funds into upgrading them so you can reach a large pool of renters. 

One important thing to remember is that the number shown regarding home sales and prices is based on the national average. Canada has some large metro cities like Vancouver and Toronto that have very high prices, and their numbers skew the national average slightly. If you want to invest, look for mid-sized cities or small towns for the best prices and the most options. 

If you are asking yourself, “does Canada have a safe real estate market for investors?” the answer is a resounding, Yes. They are only getting bigger and better every year, so you should start looking as soon as possible at some of the fantastic homes and properties that are available in Canada.



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