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Canada Mortgage and Housing Corporation today released a new study – Examining Escalating House Prices in Large Canadian Metropolitan Centres. The analysis shows that strong economic and population growth, together with low mortgage rates, have been important drivers of house price growth in Canada. As well, it also shows that the supply response has been weaker in Toronto and Vancouver, than in other Canadian metropolitan areas.

The report looked at data from Toronto, Vancouver, Montreal, Calgary and Edmonton from 2010 to 2016. These cities show marked differences in the growth of their prices. While Toronto and Vancouver showed large and persistent increases in prices, there was only modest price growth in Montréal. Despite softer local economic conditions, home prices rose slightly in oil-dependent Calgary and Edmonton. 

Additional key findings:

  • House prices increased by 48% in Vancouver from 2010 to 2016 with conventional economic factors such as growth in population and disposal income, as well as low mortgage rates accounting for nearly 75% of that rise.
  • House prices increased by 40% in Toronto over the same time period with 40% of the rise being explained by conventional economic factors.
  • Price increases have tended to be greater for more expensive single-detached housing, rather than for condominium apartments.
  • Supply responses have been proportionately greater for condominium apartments than for single-detached housing.
  • Investor demand for condominium apartments has increased. In turn, this increase lifts the supply of rental properties, but these units tend to be more expensive than units from existing purpose-built rentals. There appears to be a wider prevalence of mortgage helpers as well.
  • Measures targeted at alleviating supply challenges are more likely to have positive impacts on high-priced markets than measures focused on the demand sideThe report represents one of the most thorough examination of house price patterns ever completed in Canada and is the result of advanced, data-driven analyses and engagement with stakeholders and government partners. Models and data sets that support the study’s conclusions will be made available on CMHC’s website in the coming weeks.

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry

“While it is true that the supply response in Toronto and Vancouver has been significantly weaker than in other Canadian metropolitan areas, we do not fully know why this is the case. There continues to be data gaps and we need to work more closely with jurisdictions at all levels to fully understand what is happening.”

— Evan Siddall, President and Chief Executive Officer, Canada Mortgage and Housing Corporation

“Large Canadian centres like Toronto and Vancouver are increasingly behaving like world-class cities. Their strong local economies and historically low interest rates make them attractive to both people and industry which drives up demand for housing. When you have weak supply responses, as you do in these markets, prices have nowhere to go but up. Alleviating these pressures lies in finding ways to increase supply and that is a shared job for jurisdictions at all levels.”

— Aled ab Iorwerth, Deputy Chief Economist, Canada Mortgage and Housing Corporation

Provided by: CMHC

Simon Fraser
Market Update

Simon Fraser Condos

Altaire by Polygon

Altaire built in 2008/2009 reaches higher then any other condo building in Metro Vancouver offering panoramic views.

Novo I by Intergulf

Novo I built in 2007 known for the amazing sight lines and views from most units and balconies up to 1000 sq ft.

Novo II by Intergulf

Novo II built in 2007 known for the amazing sight lines and views from most units and balconies up to 1000 sq ft.

Aurora by Polygon

Aurora built in 2006 with 103 condos featuring 36 unique floor plans ranging from 715 sq ft to 1500 sq ft.

One University by Millennium

One University built in 2005 is UniverCity's flagship building with luxury homes featuring semi private elevators.

Harmony by Polygon

Harmony built in 2005 was the first condo development at Univercity & as a result offers a unique setting & views.

Serenity Townhomes by Polygon

Serenity is a collection of 2 bedroom townhomes of 1100 sq ft ranging to 4 bedroom 2000+ sq ft townhomes.

The Hub by Liberty Homes

The Hub built in 2009 is set atop Nester's Grocery and steps from High Street giving these homes an urban feel.

Verdant by VanCity Enterprises

Verdant is a two storey town home building built with environmental design and stylish living spaces which complement the modern exterior of these SFU homes.

Origin by Porte Development

Origin is designed by GBL Architect & BYU Interior Designs, developed by Porte Development Corp. and marketed by Red Dot Real Estate.

Nest by Mosaic

Located on UniverCity High Street across from the new University Highlands elementary schools this refreshing building will add further depth to a growing community.

Highland House by Liberty Homes

A 12-storey concrete high-rise development and targeted towards Rental Investors and First-Time Condo Buyers.

Lift by Porte Development

Lift will be a wood frame building comprising of 56 homes. Building technologies, environmental features, and price points should be similar to Origin.

Altitude by Hungerford Group

Altitude will be a 2 tower development comprising of a 12 and 14 story building with a total of 210 strata units.

CentreBlock by Liberty Homes

CentreBlock at UniverCity atop Burnaby Mountain is the latest condo project with sales commencing early 2014. .

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