Canada Real Estate Market Size, Trends & Industry Report 2033

IMARC Group has recently released a new research study titled “Canada Real Estate Market Report by Property Type (Residential Buildings and Dwellings, Commercial Complexes, Industrial Infrastructure, Government Infrastructure), Business (Sales, Rental, Lease), and Region 2025-2033,” which offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends, and competitive landscape to understand the current and future market scenarios.

Canada Real Estate Market Overview

The Canada real estate market size reached USD 183.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 231.5 Billion by 2033, exhibiting a growth rate (CAGR) of 2.60% during 2025-2033.

Market Size and Growth

Base Year: 2024

Forecast Years: 2025-2033

Historical Years: 2019-2024

​Market Size in 2024: USD 183.8 Billion

​Market Forecast in 2033: USD 231.5 Billion

Market Growth Rate 2025-2033: 2.60%

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Key Market Highlights:

✔️ Strong market activity driven by population growth and urban development in major cities

✔️ Increasing demand for affordable housing and sustainable building practices

✔️ Expanding investments in smart infrastructure and mixed-use developments across residential and commercial sectors

Canada Real Estate Market Trends

The Canada Real Estate Market underwent substantial adjustments in 2024 following the Bank of Canada’s decision to raise the benchmark interest rate to 5.0%. This monetary policy shift led to tighter mortgage qualification criteria, particularly affecting first-time buyers. Over 30% of prospective new entrants were excluded from the market due to stricter stress tests. As homeownership affordability declined, liquidity-rich investors capitalized on market softening, further widening the disparity between institutional purchasers and individual buyers.

Reduced purchasing activity redirected demand toward the rental sector. In urban centres such as Toronto and Vancouver, residential vacancy rates fell below 1%, reaching historical lows. Concurrently, national home sales declined, and market absorption slowed. Average listing durations increased from 18 days in 2022 to 45 days by 2024. In response, some sellers implemented vendor take-back (VTB) mortgage structures to facilitate transactions.

Housing development activity also contracted. Elevated borrowing costs made project financing less feasible, resulting in the postponement or suspension of over 60,000 planned units. Despite the broader slowdown, the luxury segment of the Real Estate Market in Canada remained resilient. Properties in waterfront and resort-adjacent regions experienced a 12% price appreciation, supported by high-net-worth individuals and favorable currency exchange dynamics.

Policy interventions continued to shape market behavior. The federal foreign buyer ban was extended to 2026, though its impact on pricing has remained limited. Several provinces enacted their own regulatory measures. British Columbia’s “Homes for People” initiative revised zoning codes to permit higher-density, multi-unit developments. Ontario introduced a land speculation tax to deter land banking, while Calgary expedited development approvals, reducing permitting timeframes to under 90 days for certain applications.

Demographic growth exerted additional pressure on the Real Estate Market Canada. Canada admitted approximately 500,000 immigrants in 2024, contributing to increased demand in both ownership and rental segments. In response, some jurisdictions implemented alternative housing models. Quebec allocated $1.2 billion toward modular construction, achieving a 40% reduction in build timelines. Nevertheless, structural challenges persist. Labour shortages exceed 100,000 vacancies in skilled trades, and material inputs remain elevated, with lumber prices rising by 22% year-over-year.

Affordability indicators have deteriorated. The average home now consumes approximately 62% of household income—more than double the 30% benchmark for housing affordability. Alternative ownership models are emerging. Younger buyers are pursuing co-ownership strategies, while intergenerational living arrangements are increasing, supported by equity transfers from older family members.

The commercial segment of the Canada Real Estate Market Size is also undergoing transformation. Office vacancy rates remain elevated at 18%, prompting municipal programs that incentivize residential conversions. Environmental considerations are beginning to influence buyer behavior. In flood-prone zones such as British Columbia’s Fraser Valley, insurance costs have tripled, pushing migration toward less exposed areas.

Overall, while the Real Estate Market Canada continues to expand in select areas, market performance is highly segmented. Resolving affordability and supply constraints will require coordinated action from government entities, private developers, and financial institutions to ensure accessible housing options across all income levels.

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Canada Real Estate Market Segmentation:

The market report segments the market based on product type, distribution channel, and region:

Breakup by Property Type:

• Residential Buildings and Dwellings
• Commercial Complexes
• Industrial Infrastructure
• Government Infrastructure

Breakup by Business:

• Sales
• Rental
• Lease

Breakup by Region:

• Ontario
• Quebec
• Alberta
• British Columbia
• Others

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Competitive Landscape:

The market research report offers an in-depth analysis of the competitive landscape, covering market structure, key player positioning, top winning strategies, a competitive dashboard, and a company evaluation quadrant. Additionally, detailed profiles of all major companies are included.

Key Highlights of the Report

1. Market Performance (2019-2024)

2. Market Outlook (2025-2033)

3. COVID-19 Impact on the Market

4. Porter’s Five Forces Analysis

5. Strategic Recommendations

6. Historical, Current and Future Market Trends

7. Market Drivers and Success Factors

8. SWOT Analysis

9. Structure of the Market

10. Value Chain Analysis

11. Comprehensive Mapping of the Competitive Landscape

About Us:

IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

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