Canada Housing Market

A 63% price jump in just over a decade? That’s the reality we’re staring down- unless we act fast.

According to recent projections, Canadian home prices are on track to increase by 63% between 2024 and 2035, which breaks down to an average annual growth rate of 5%. To put that in perspective, that’s more than double the pace of wage growth and inflation– a trend that spells disaster for affordability.

What Does 63% Price Growth Really Mean?

Let’s say the average home price in 2024 is $700,000. A 63% jump would bring that to over $1.14 million by 2035. This level of price growth isn’t just a problem for first-time buyers- it could lock out entire generations from homeownership.

Affordability is already stretched thin across Ontario and the rest of Canada. With rising interest rates, stagnant wages, and inflation hitting essentials like food and gas, this kind of price acceleration is completely unsustainable.

Why Are Prices Rising So Quickly?

Simple economics: demand is far outpacing supply. Immigration is booming, urban populations are growing, and the construction pipeline isn’t keeping up.

The CMHC and other housing experts have said it repeatedly: Canada needs more homes- fast.

The 32,000 Homes-a-Year Solution

Here’s the kicker: if Canada builds an additional 32,000 homes per year, we could actually cool the market and bring prices closer to sustainable growth levels.

This means:

• Boosting housing starts beyond current targets
• Accelerating approvals and permits
• Increasing density in key urban areas
• Encouraging purpose-built rentals and affordable units

Without this extra supply, the 5% annual price increase will continue, leaving affordability in the dust and making it harder for everyday Canadians to enter or stay in the housing market.

Why This Matters for Everyone

Even if you’re already a homeowner, this issue affects you. Skyrocketing prices mean:

• Fewer buyers in the market (which could hurt resale value long-term)
• Higher property taxes and carrying costs
• More pressure on rental markets
• Bigger wealth gaps across generations

If we don’t address this now, housing affordability won’t just be a millennial and Gen Z issue– it’ll be a national crisis.

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Source: Canada’s Housing Supply Shortages: Moving to a New Framework

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