Comparing the housing markets of different cities, regions, and provinces in Canada reveals that a $1 million home can vary significantly. With Canada facing a continuous shortage in housing supply and buyers battling with affordability, the characteristics of a $1-million home differ substantially across key markets.
A recent study by Royal LePage® has shown that, as of December 2023, the typical Canadian home priced between $950,000 and $1,050,000 features 3.2 bedrooms, 2.1 bathrooms, and spans 1,760 square feet, encompassing a variety of property types.
Despite a significant downturn in market activity and only slight increases in property values, the purchasing power of $1 million in Canada’s real estate scene has stayed relatively stable from one year to the next. For instance, in December 2022, a home valued around $1 million would typically offer 3.2 bedrooms, 2.6 bathrooms, and 1,763 square feet of space.
Karen Yolevski, COO of Royal LePage Real Estate Services Ltd., explains, “The value of a $1-million home varies greatly depending on the city. For example, in Calgary, $1 million might allow homeowners to upgrade, whereas in Vancouver, it’s more likely to represent the minimum investment for first-time buyers. The buying power of $1 million has diverged significantly among cities over time. What once could secure a spacious, desirable home in almost any market now might only afford a luxury standalone house in one city or a modest two-bedroom condo in another.”
The disparity in what $1 million can achieve across Canada is stark, with buyers in larger urban centers often having to compromise more on their home preferences, even with a budget in the seven figures, compared to those in smaller, more affordable areas.
A Royal LePage survey by Leger reveals that 64% of Canadians believe $1 million is a realistic budget for a home that meets their needs, including 22% who find it ‘adequate’ and 41% who think it’s ‘more than sufficient’. However, 22% feel it’s ‘insufficient’.
Yolevski adds, “As buyers return to the market with the anticipated decrease in interest rates, we expect a rise in property prices, further complicating affordability despite lower monthly costs. Without a boost in housing supply, particularly in cities like Toronto and Vancouver, the expectations for what $1 million can buy will continue to shift towards smaller properties.”
Key findings from the Royal LePage 2024 Million-Dollar Properties Report include:
Edmonton features the largest average home size within the $1-million range at 2,675 square feet, while Vancouver has the smallest at 900 square feet.
Toronto and Vancouver have below-average square footage for $1-million homes, whereas the Greater Montreal Area exceeds the national average by 466 square feet.
In the $2-million price bracket, Winnipeg and Halifax offer the largest average home sizes at nearly 4,000 square feet.
Generally, a $2 million budget secures significantly more, with homes in this price range averaging 3.7 bedrooms, 2.6 bathrooms, and 2,501 square feet, inclusive of all property types as of December 2023.