A standard house price in Canada costs twice as much as it does in the US
According to the Canadian Real Estate Association, the average home price in Canada reached a record $816,720 in February—or $638,144 USD—more than nine times the average household income (via Fortune). According to the National Association of Realtors, home prices in the United States increased by 27% over the same period, reaching a record average of US$375,300 ($480,168 CAD)—a 15% increase year on year.
Shocked? Many Canadians just don’t know what to do with this trend! Canadian laid-back living is long gone! Canadians seem to disperse all over Canada and abroad in order to afford a living these days! While Calgary and PEI are the most desirable destinations for Torontonians and other expansive to live in cities in Ontario, also many Canadians migrate more south due to a better housing climate.
Average house prices in Texas for instance are about 3-4 times lower that the average house price in the GTA and still the average income is at the same level in both places. But why is that? What went wrong in Canada? Why is it impossible for young Canadians or new immigrants in Canada to buy a property?
Previously, the prices of homes in Canada and the United States were the same. But that began to change about a decade ago. The pandemic widened the housing price disparity between the two countries.
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Foreign investors have taken an interest in the Canadian real estate market in recent years, making it difficult for residents who want to buy homes in the country to do so. These investors simply buy homes to rent or sell for a profit later, making the market more competitive because they have enough capital to purchase properties and outbid residential homebuyers.
According to one report, investors have financed one-fifth of all home purchases since the pandemic began. Toronto and Hamilton were the most popular destinations for investors. Investors will account for 22.7% of home purchases in these cities in February 2021. Now that it is next to impossible for foreign investors to purchase a property in Canada it leaves us only with glimpse of a hope that the house prices in Canada will come down to reasonable prices again!
Simply, I can’t believe that any fellow Canadian leaves Canada due to disliking their beloved homeland, instead it is the high cost of living that brings people to leave or think about starting a new life somewhere else. A mew life more affordable!
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