Why is the price of homes so costly in Canada?

[nec209]

Why is the price of homes so costly in Canada?

I can see Vancouver, Toronto and Montreal but why are homes so costly in Canada?

In Edmonton, Calgary, Winnipeg or Regina the price of home should be $200,000 if it was American city.

In Windsor, London and Hamilton and Ottawa would be $300,000 if it was an American city.

Well Vancouver, Toronto and Montreal would be million starting price if it was American city.

Small towns or smaller cities should be $100,000 has they hardly growing.

Note these cities would be so small in the US you would not find them on map yet large mentro cities with 6 million people are going for $400,000

[James Bond Agent 007]

Canada is like a ski resort. Everybody wants to live there because it's so nice.

[Nite]

Originally Posted by nec209

Why is the price of homes so costly in Canada?

I can see Vancouver, Toronto and Montreal but why are homes so costly in Canada?

In Edmonton, Calgary, Winnipeg or Regina the price of home should be $200,000 if it was American city.

In Windsor, London and Hamilton and Ottawa would be $300,000 if it was an American city.

Well Vancouver, Toronto and Montreal would be million starting price if it was American city.

Small towns or smaller cities should be $100,000 has they hardly growing.

Note these cities would be so small in the US you would not find them on map yet large mentro cities with 6 million people are going for $400,000

If you are talking in USD, then average home price is under 1 million USD in Vancouver (900k USD), Toronto (750k USD) and Montreal (500K USD) though.
I suspect if Vancouver was in the US home prices would be much higher than it is in Canada with much fewer highrises.

I also don't see why you are grouping Edmonton, Calgary, Winnipeg or Regina in the same category as they very different cities and growth trajectories.

https://wowa.ca/reports/canada-housing-market

[Architype]

Originally Posted by James Bond Agent 007

Canada is like a ski resort. Everybody wants to live there because it's so nice.

Tell that to the millions who cannot afford their rent, or have any hope of buying a home.

However, if you take land value out of the equation, houses often can sell for what they would cost to build, minus depreciation.

Development is also over regulated, and regulated with high fees, and it's been geared to real estate investors' profits, rather than actual homes for people.

[Changing City]

Originally Posted by nec209

Why is the price of homes so costly in Canada?

I can see Vancouver, Toronto and Montreal but why are homes so costly in Canada?

In Edmonton, Calgary, Winnipeg or Regina the price of home should be $200,000 if it was American city.

You mistaken about the relative difference of reasonably equivalent US and Canadian cities. Regina is the provincial capital, and had a population of around 226,400 in 2021. For a reasonable comparison, consider the US city of Sioux Falls in South Dakota, with a 2020 census population of 192,500. Both were created in the late 19th century, so have similar housing stock.

In Regina, according to Royal LePage, the aggregate home price was $396,500 in Q3 2025. In Sioux Falls, according to Zillow, The average Sioux Falls, SD home value is $323,783US. That would be $450,000 in Canadian dollars.

Winnipeg could be compared with Minneapolis - in Winnipeg, the aggregate home price was $411,800 in Q3 2025, and in Minneapolis the average home value is $316,531US ($440,000 Canadian). (Same sources of values).

There was a period in the 2000s when Canadian prices rose, and US prices dropped significantly, due to the 2008 housing market meltdown in the US, caused by the subprime mortgage crisis which depressed the US economy and house prices. But that was years ago, and today, comparing in US dollars, there's very little difference between the two countries (overall - obviously there's huge variation in individual markets).

Here's a chart from the econeye blog showing average Canadian and US prices over the past 30 years (in US dollars).

[Nite]

Originally Posted by Changing City

You mistaken about the relative difference of reasonably equivalent US and Canadian cities. Regina is the provincial capital, and had a population of around 226,400 in 2021. For a reasonable comparison, consider the US city of Sioux Falls in South Dakota, with a 2020 census population of 192,500. Both were created in the late 19th century, so have similar housing stock.

In Regina, according to Royal LePage, the aggregate home price was $396,500 in Q3 2025. In Sioux Falls, according to Zillow, The average Sioux Falls, SD home value is $323,783US. That would be $450,000 in Canadian dollars.

Winnipeg could be compared with Minneapolis - in Winnipeg, the aggregate home price was $411,800 in Q3 2025, and in Minneapolis the average home value is $316,531US ($440,000 Canadian). (Same sources of values).

There was a period in the 2000s when Canadian prices rose, and US prices dropped significantly, due to the 2008 housing market meltdown in the US, caused by the subprime mortgage crisis which depressed the US economy and house prices. But that was years ago, and today, comparing in US dollars, there's very little difference between the two countries (overall - obviously there's huge variation in individual markets).

Here's a chart from the econeye blog showing average Canadian and US prices over the past 30 years (in US dollars).

Echoing this graph here are the December 2025 average house price for Canada vs the US.

National Average Home Prices (As of December 2025)

Canada[/TD]
$490,611 USD
-1.4% 12-Month Change

United States
$534,100 USD
+2.0%12-Month Change

[EnvisionSaintJohn]

Originally Posted by Nite

Echoing this graph here are the December 2025 average house price for Canada vs the US.

National Average Home Prices (As of December 2025)

Canada[/TD]
$490,611 USD
-1.4% 12-Month Change

United States
$534,100 USD
+2.0%12-Month Change

Wow, I thought Canada was still ahead. If only our dollar was worth more again.

[SignalHillHiker]

Growing demand with limited supply, I suppose.

I wish we'd provide some means for renters who wish to own other than a down payment. If you can demonstrate you've paid $1,300/month on time for a couple of years, that should be sufficient to get a mortgage for the same amount or less.

I'm fortunate here that my preferences are not desirable to the vast majority of buyers. Downtown homes are typically much cheaper here than suburban ones, with the exception of the finest ones, or the largest with multiple units. My house, for example, would've easily cost twice as much if it was out in Mount Pearl or Paradise.

[MolsonExport]

Development charges (fees, levies, taxes, etc.) add very significantly to the base price of most new homes. Especially in Toronto.

High-Cost Areas: Toronto ($180,600), Markham ($180,303).
Mid-Range: Brampton ($154,655), Newmarket ($146,019), Mississauga ($135,770).
Lower (But Still Significant): Pickering ($124,714), Burlington ($111,629).

I think about these numbers, against the total cost of the first new home I bought, back in late 2005, at $259,000 (3+1 bedrooms, detached, London, Ontario).

[Surrealplaces]

Originally Posted by nec209

Why is the price of homes so costly in Canada?

I can see Vancouver, Toronto and Montreal but why are homes so costly in Canada?

In Edmonton, Calgary, Winnipeg or Regina the price of home should be $200,000 if it was American city.

In Windsor, London and Hamilton and Ottawa would be $300,000 if it was an American city.

Well Vancouver, Toronto and Montreal would be million starting price if it was American city.

Small towns or smaller cities should be $100,000 has they hardly growing.

Note these cities would be so small in the US you would not find them on map yet large metro cities with 6 million people are going for $400,000

I'm not sure Canada is actually more expensive. It depends what you're comparing, but the most expensive places in the US are as expensive or more expensive than Toronto or Vancouver, the most expensive cities in Canada. A place like Calgary (in terms of relative comparison to other metros within Canada) might be compared to a city like Seattle, Dallas or Boston, and those cities are more expensive than Calgary after the dollar conversion.
Same on down the line for mid sized or smaller cities.
The one area where larger US Metros can be cheaper are the rustbelt cities like Cleveland or Detroit,, or weird cases like Baltimore which is far cheaper than neighboring Washington DC but generally after doing the dollar conversion, the US isn't necessarily cheaper.

[whatnext]

Originally Posted by James Bond Agent 007

Canada is like a ski resort. Everybody wants to live there because it's so nice.

Haha, I know you’re moving here (and welcome) but Canadian winter weather is generally pretty miserable compared to a lot of comparable American cities, and there’s so many fewer cities to choose from. Even mild Vancouver is wet and grey for much of October through March.

[James Bond Agent 007]

Originally Posted by whatnext

Haha, I know you’re moving here (and welcome) but Canadian winter weather is generally pretty miserable compared to a lot of comparable American cities, and there’s so many fewer cities to choose from. Even mild Vancouver is wet and grey for much of October through March.

Well, ski resorts are cold too, but they're still popular and expensive.

[James Bond Agent 007]

Originally Posted by Surrealplaces

I'm not sure Canada is actually more expensive. It depends what you're comparing, but the most expensive places in the US are as expensive or more expensive than Toronto or Vancouver, the most expensive cities in Canada. A place like Calgary (in terms of relative comparison to other metros within Canada) might be compared to a city like Seattle, Dallas or Boston, and those cities are more expensive than Calgary after the dollar conversion.
Same on down the line for mid sized or smaller cities.
The one area where larger US Metros can be cheaper are the rustbelt cities like Cleveland or Detroit,, or weird cases like Baltimore which is far cheaper than neighboring Washington DC but generally after doing the dollar conversion, the US isn't necessarily cheaper.

This.

For example, I just Googled "average housing cost winnipeg vs average housing cost minneapolis" and got the following AI answer:

Winnipeg generally offers significantly lower housing costs than Minneapolis, with Winnipeg being known as an affordable Canadian city compared to larger markets, while Minneapolis sits closer to the national average, with median home prices around $348k USD (late 2024 data) but higher living expenses overall, making Winnipeg the more budget-friendly choice for housing.

Minneapolis Housing (U.S. Dollars - USD)

Median Home Price: Around $348,250 (as of late 2024/early 2025).
Cost of Living: Higher than the national average, but with higher median incomes.

Winnipeg Housing (Canadian Dollars - CAD)

Affordability: Known as one of Canada's more affordable mid-sized cities, with lower living expenses than major Canadian hubs.
General Costs: A single person might expect around $2,000-$2,500 CAD monthly for basic living, including housing.

Key Difference
Winnipeg's housing market is considerably more accessible and cheaper relative to Minneapolis, where housing costs are higher, though offset somewhat by higher potential earnings in the U.S. market

[James Bond Agent 007]

Originally Posted by Architype

Tell that to the millions who cannot afford their rent, or have any hope of buying a home....

No doubt that's true of most ski areas as well.

[WhipperSnapper]

Converting to USD is misleading. The median household income for Seattle and Toronto are about the same however, only in their own currencies.

[nec209]

That is news for me the average housing cost in Calgary and Edmonton is over $600,000?

[WhipperSnapper]

The millions that can't afford housing typically aren't those new to Canada. Refugees by international standards must be given housing. Students coming for better education and healthcare can afford housing although there are a number of federal programs that ease the high costs. Immigrants, again, have available federal programs offering cash incentives and housing although even a six figure one time payout will only go so far. There are, of course, sustainable programs that pay out annually too.

[kwoldtimer]

Originally Posted by WhipperSnapper

The millions that can't afford housing typically aren't those new to Canada. Refugees by international standards must be given housing. Students coming for better education and healthcare can afford housing although there are a number of federal programs that ease the high costs. Immigrants, again, have available federal programs offering cash incentives and housing although even a six figure one time payout will only go so far. There are, of course, sustainable programs that pay out annually too.

Refugees are placed in temporary accomodation but are not "given housing". They may receive some housing support for a period of time once they find permanent housing. I don't know what "six figure" payout for immigrants you are speaking of - it seems most unlikely.

[Architype]

Originally Posted by James Bond Agent 007

No doubt that's true of most ski areas as well.

Yes, Vancouver is a ski area, we live in chalets. Here's a house for sale at the far edge of my area, about 5 km from the centre of downtown. I'd consider the price is not bad for here, and it has restorable charm. This includes the whole building, it's divided into two addresses.

[James Bond Agent 007]

Every time I used to go to Vancouver, it always struck me as some sort of modernistic ski resort writ large. Not one bit surprised there are dumps there going for over a million.

I realize it's tough for people who want to live there, but the reality is, probably more than any other Canadian city, Vancouver's destiny is to be a sort of northerly Monaco.