Strong equity gains over the past 30 years have left few regretting the leap to home ownership, but obstacles are dimming the dream for future generations, as home-ownership rates decline nationally and in major markets, according to a report released by REMAX Canada.
In its analysis of data and market conditions, the REMAX Housing Market Drivers Report found that, although each generation has faced significant economic challenges, the current cohort of property purchasers is facing among the most formidable headwinds yet. To date, each generation has bounced back — and fared exceptionally well — as history has shown that major Canadian centres rebound sharply once economic stability returns to the market. Although the journey remains complex and affordability is a significant barrier, reason for optimism remains given the real estate cycle and practical solutions that offer potential to change the current trajectory for young buyers and ease the path to home ownership — providing governments and the private sector act in lockstep.
REMAX said it examined nine major Canadian urban centres over a 30-year period and found population growth, coupled with policy levers and market events, have long underpinned the Canadian housing market, creating periods of extended growth and contractions in the country’s largest cities. Halifax Regional Municipality reported the greatest increase in price percentage growth, rising 460 per cent between 1994 and 2024 for a compounded annual growth rate (CAGR) of 5.91 per cent. The Greater Toronto Area was a close second with a percentage increase of 436.2 per cent and a CAGR of 5.76 per cent, while Saskatoon rounded out the top three, with a percentage increase of 377 per cent and a compounded annual rate of return of 5.35 per cent.
Don Kottick
“The findings confirm that home ownership continues to be the greatest driver of wealth, especially at the middle-class level,” says Don Kottick, President, REMAX Canada. “Each generation of Canadian homeowners — from Baby Boomers to Gen Z — has faced its challenges and obstacles. Today’s trade barriers, high interest rates and stringent lending policies may be overwhelming, but this too shall pass. Historically, dynamics evolve from recovery to expansion, peak to contraction, trough to recovery. Cyclically, the trough is short and gives way to renewed growth. In retrospect, buyers may look back and realize that this period represented the best opportunity in recent years to get into the market at a reduced price point.”
At present, REMAX said its brokers reported balanced/moderating conditions in most markets, with affordability being an ongoing issue, despite more favourable conditions including rising inventory levels. Average price escalation continues to outpace wage growth, making it exceedingly difficult for first-time buyers across all regions to enter the market. Many would-be purchasers are challenged by the mortgage stress test, debt burdens, downpayment requirements and carrying costs. Chronic supply shortages at lower price points are driving values higher, while the cancellation of new construction projects have set the stage for tight market conditions in the future. A notable trend in the market includes aging empty-nesters and retirees now competing with first-time buyers for smaller homes, particularly bungalows, in many areas of the country. This competition makes winning a bid even harder for first-timers who are up against better-positioned buyers.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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