Canada’s job market hasn’t kept up with its population growth, and that’s bad news for major real estate markets. Statistics Canada (Stat Can) data shows unemployment continued to rise in June. A deep dive shows the weakness is concentrating in some of the country’s most important real estate markets. Just five cities represent most of the unemployment growth in the past year, half of which was located in Toronto.
Canadian Unemployment Is Rising, Now 1.4 Million Jobseekers
Canadian unemployment has generally been on the rise. The unemployed population grew 0.2 points (+29k people) to 6.3% (1.37 million people) in June. Since last year, the rate has added 1 point (+250.4k people), hitting the highest level since 2022. It also happens to be the highest non-pandemic unemployment rate since October 2017, with one key difference—there’s a lot more people this time around.
As mentioned last week, Canada’s unemployment story is less about job losses and more about population growth. Immigration is rising much faster than the country’s economic capacity to create jobs, leading to much higher unemployment for new immigrants and young adults competing for similar roles. On that note, it’s no surprise that most (60%) of the unemployment growth in the past year was concentrated in major real estate markets—Toronto, Vancouver, Calgary, Montreal, and Halifax. Half of the collective growth in those markets was located in Toronto.
Canadian Unemployment Rate On The Rise
The unemployment rate for Canada and selected cities, seasonally adjusted 3-month moving average.
Source: Statistics Canada; Better Dwelling.
Toronto Is Home To Over 1 In 5 Unemployed People In Canada
Toronto is Canada’s largest city, and one of the most popular spots for people looking to start a career. That might be a mistake. The unemployment rate made some progress by falling 0.1 points (-2.3k people) to 7.8% (314.9k people) in June. Over the past year, the region’s unemployment rate added 1.7 points (+73.4k people). Take a moment to appreciate just how many people that is.
In just 1 year, its unemployed population increased by more than the equivalent of Fredricton or Ft. McMurray’s total population. That’s just the growth, not the total unemployed population. There are so many unemployed people concentrated in Toronto that if they got together and formed their own city, it would be Canada’s 14th largest—right behind Halifax.
Canada’s Unemployed Population Is Increasingly Located In Toronto
The share of Canada’s unemployed population located in selected cities.
Source: Statistics Canada; Better Dwelling.
Over 1 in 5 (23%) people unemployed in Canada are concentrated in Toronto. The region’s growth over the past year was also 29% of total growth, meaning its overweight in its contribution.
Vancouver’s Job Market Remains Much Stronger Than Average
Vancouver proves that not all big cities are experiencing problems—it’s doing better than average. Its unemployment rate fell 0.1 points (-1.6k people) to 5.6% (95.7k people) in June. Over the past year, the rate has increased 0.2 points (+6.3k people). Vancouver doesn’t just have a lower than average unemployment rate, it also has much slower unemployment growth.
Calgary Is Seeing Unemployment Surge, Much Higher Than Average
Despite Calgary’s resilient real estate market, it’s home to one of the highest unemployment rates in Canada. The rate climbed 0.4 points (+3.8k people) to 8.5% (87.3k people) in June. It’s up a whopping 2.3 points (+27.3k people) since last year—more than double the growth rate of the national average. Despite this, it’s one of the only markets where real estate continued to demonstrate strength.
Montreal’s Labor Market Just Saw A Rapid Shift, But Resilient So Far
Montreal’s unemployment rate is just below the national average, but things are changing fast. The rate increased 0.4 points (+9.3k people) to 6.2% (156.3k people) in June. It’s now 1.7 points (+41.8k people) higher than last year. A rate that comes in lower than average is good news, but last month’s move was so large that it represented nearly a quarter of unemployment’s annual growth. Maybe it’s noise, maybe it’s not—but worth keeping an eye on.
Halifax Has Low Unemployment, But Weakness May Be Emerging
Halifax real estate and it’s job market have at least one thing in common—it’s barely moving. The region’s unemployment rate increased 0.3 points (+0.8k people) to 5.8% (17.2k people) in June. It’s now 0.1 points (+1.4k people) higher than last year. An incredibly low rate, but the month’s move was 3x the annual change. That implies a very fast reversal of progress made over the past year.
Canada’s employment market is an odd state—unemployment is rising, but not due to a loss of jobs. It’s mostly due to the country’s population growing much faster than the economy’s ability to absorb this labor surge. As a result, the burden is primarily falling on recent immigrants and young adults who compete for similar, low experience roles. Not surprisingly, that skews the problem to the country’s major cities where those populations are located.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
