The house price for Ontario is forecast to increase slightly in 2024, after declining by six percent in 2023. From roughly 872,312 Canadian dollars, the average house price in Canada's second most expensive province for housing is expected to rise to 876,410 Canadian dollars in 2024. After British Columbia, Ontario is Canada's most expensive province for housing. Ontario Ontario is the most populated province in Canada, located on the eastern-central side of the country. It is an English speaking province. To the south, it borders American states Minnesota, Michigan, Ohio, Pennsylvania, and New York. Its provincial capital and largest city is Toronto. It is also home to Canada’s national capital, Ottawa. Furthermore, a large part of Ontario’s economy comes from manufacturing, as it is the leading manufacturing province in Canada. The population of Ontario has been steadily increasing since 2000. The population in 2018 was an estimated 14.3 million people. The median total family income in 2021 came to 100,000 Canadian dollars. Ontario housing market The number of housing units sold in Ontario is projected to rise until 2024. Additionally, the average home prices in Ontario have significantly increased since 2007.

The Report Covers Canada Commercial Real Estate Industry Outlook for the Next 5 Years and is Segmented by Type (office, Retail, Industrial, Multi-Family, and Hospitality) and by City (Toronto, Vancouver, Calgary, Ottawa, Montreal, Edmonton, and the Rest of Canada). The Report Offers Market Size and Forecasts for the Commercial Real Estate Market in Canada in Terms of Value (USD) for all the Above Segments.

The average sales price in Greater Toronto, Canada, increased for all property types except condos in 2023. Buying a condo in December 2023 would cost a home buyer about 680,000 Canadian dollars. Toronto is Canada's most populous city and the country's most important economic center. It consists of 25 municipalities, including Toronto City, Mississauga, Brampton, and others.

The average Canadian house price declined slightly in 2023, after four years of consecutive growth. The average house price stood at 678,282 Canadian dollars in 2023 and was forecast to reach 746,379 Canadian dollars by 2026. Home sales on the rise The number of housing units sold is also set to increase over the two-year period. From 443,511 units sold, the annual number of home sales in the country is expected to rise to 453,704 in 2025. British Columbia and Ontario have traditionally been housing markets with prices above the Canadian average, and both are set to witness an increase in sales in 2025. How did Canadians feel about the future development of house prices? When it comes to consumer confidence in the performance of the real estate market in the next six months, Canadian consumers in 2024 mostly expected that the market would go up. A slightly lower share of the respondents believed real estate prices would remain the same.

Home sales in Ontario, Canada, soared in 2021, before dipping sharply in the following two years. In 2023, about 161,696 home sales took place in Ontario and this figure is expected to slightly increase to 196,611 in 2024. This was in line with the forecast number of housing transaction in Canada until 2025. Ontario is one of the most expensive provinces for housing, ranking second after British Columbia in 2023.

Vancouver had the lowest cap rate for industrial and logistics real estate across different Canadian markets in 2023. The capitalization rate measures the rate of return on commercial properties and is calculated by dividing the net operating income of a property by its asset value. While a higher rate might promise higher return, it is also an indication of a riskier asset. In the first quarter of the year, the average cap rate for class A and B industrial and logistics properties in Vancouver was 4.4 percent, while in Toronto, it stood at 5.06 percent.

The average asking rent of industrial and logistics real estate in Canada was between 10 and 22 Canadian dollars per square foot in the first quarter of 2023. Toronto, which was the market with most inventory, had monthly rent of 18.45 Canadian dollars per square foot, making it the third most expensive market.

The average mortgage payment across all Canadian metros declined in 2023. In the third quarter of the year, Vancouver and Toronto topped the ranking of highest mortgage payment costs. Homebuyers in Vancouver had to pay, on average, 2,410 Canadian dollars monthly, while in Toronto, the average monthly scheduled mortgage payment was 2,318 Canadian dollars. Canada’s housing market House prices in Canada vary widely across the country. In 2023, the average sales price of detached single-family homes in Vancouver was nearly three times as expensive as the national average. Vancouver is undoubtedly considered the least affordable housing market: In 2021, the cost of buying a home with a 25-year mortgage in Canada was approximately 45 percent of the median household income, whereas in Vancouver, it was nearly 64 percent. Development of house prices The development of house prices depends on multiple factors, such as availability on the market and demand. Since 2005, house prices in Canada have been continuously growing. According to the MSL composite house price index, 2021 measured the highest house price increase.

Prospective homebuyers in Vancouver, British Columbia, and Toronto, Ontario, needed an annual income of over 200,000 Canadian dollars in 2023 to qualify for the average priced home. In Vancouver, this figure was approximately 237,000 Canadian dollars. British Columbia and Ontario, are Canada's most expensive provinces for housing. According to a January 2023 forecast by the Canadian Real Estate Association (CREA), the housing market is expected to cool down in the next two years, which is likely to improve home affordability.

In 2024, the net asking rent for office space in Downtown Toronto amounted to 37.2 Canadian dollars per square foot. The most expensive submarket in the city was the Financial Core - a location concentrating a major share of the office inventory, with a rapidly developing new stock.Toronto’s office market Toronto is the capital of Ontario and a global financial center. Ontario generates a large portion of Canada’s GDP, which means that office real estate is vital for the region. Downtown Toronto had significantly more office space inventory than Midtown Toronto, and also a lower vacancy rate. Comparison with other leading cities Offices in Toronto have a higher vacancy rate than the national average. Overall, vacancy rates were the lowest in Vancouver and Montreal.

In Toronto, the gross rental yields amounted to 3.8 percent in the city center as of January 2024, whereas rental yields outside the city center were higher at 4.12 percent. Rental yield is the amount a property investor is likely to earn through renting a property. It’s calculated by dividing the total amount invested into the property by the annual rental income of the property. Vancouver vs TorontoRental yields are very important to potential investors and are an important factor they look at when deciding where to invest. City center properties generally command higher rents than those outside the center, though not in this case. Vancouver has higher rents for both two-bedroom apartment and one-bedroom apartments. Vancouver rents increasingMonthly rents for residential units in Vancouver have steadily risen over the past decade. The share of rental units which were unoccupied was low across all unit sizes. This bodes well for rental yields in the market in the future.

In 2023, there were approximately 354,730 housing units under construction in population centers of over 10,000 people in Canada. Those numbers for 2023 were lower than the figures a year earlier. However, during most of the period considered the number of homes under construction generally increased, as there were less than 145,000 homes under construction in 2009.

Development of residential construction in Canada The number of housing starts overall has developed similarly, but it was somewhat more volatile. Generally, the cities with the largest populations, like Toronto and Montreal experience the highest number of construction starts. The construction industry remains vital to Canada’s economy, providing employment to people across the country and billions in economic output. Types of housing Although many Canadians were living in single-detached houses, their cities have started to embrace multifamily starts quite early and are moving away from single family residential construction. The younger demographics in Canada, including new Canadians and young families are often striving towards homeownership but are also aware of climate change. High energy performance housing often comes with a higher price tag, but efforts are being made nationally in order to enshrine affordability as a core objective within national building codes.

Ambulatory healthcare was the type of building with the highest construction costs in Ontario (Canada) in 2023. The cost of that type of building ranged from 7,110 to 8,750 Canadian dollars per square meter. Townhouses with mid-end specifications were, along with warehouses, among the cheapest buildings to construct, even though the townhouse sale price in Canada was much higher in 2023 than in a decade earlier. On the other side of the residential spectrum, the construction cost of high-rise buildings with mid-end specifications could reach up to 5,370 Canadian dollars per square meter. The housing sector in Ontario The fast population growth in Toronto, the main city in Ontario, has put pressure on its housing market. From 2001 to 2022, the number of people living in Canada’s largest city increased by over 37 percent. During the past years, house prices in Ontario rose at a similarly fast pace. Combined, these elements signal a strong demand for homes in Toronto and Ontario as a whole. The construction sector has responded to this trend: In 2022, most housing starts in Canada took place in the province of Ontario. That same year, EllisDon Corporation, with headquarters in Mississauga (Ontario), was the second-largest contractor in Canada. One of its largest residential/mixed-use projects under development is the 489-539 King St. West Development, in Toronto. Construction cost in North America Building construction costs in Quebec, the second most populous province in Canada after Ontario, had a similar cost range: Ambulatory healthcare buildings were the most expensive, and warehouses were the cheapest to build. However, enclosed malls and higher education buildings were significantly more expensive in Quebec than in Ontario. Across the border, the cities with the highest residential construction costs in the U.S. were San Francisco for multi-family housing, and New York City for single-family housing. Meanwhile, Los Angeles, San Francisco, and New York had the highest hotel construction costs in the U.S.