Five years ago when Tehmeema Safdar’s husband was offered a position as a medical researcher in Toronto, she dreamed of putting down roots for her children in the city.
“We were kind of nervous and a little bit excited,” said the 43-year-old mother of three.
“A lot of people were telling us: go to Toronto… it’s a nice place.”
But those dreams have slowly faded: since moving from Edmonton they’ve been renters and the family has had to move three times. They currently rent a home in Oshawa.
Safdar says they continued to accumulate their savings upon arriving in the city, but watched as prices soared. Within a few years they realized owning real estate in the Greater Toronto Area was increasingly out of reach for them. They’re now looking at the possibility of leaving altogether.
“Whenever we get money — enough for buying a house — the price jumps again …and then jumps again,” said Safdar.
“We’re trying to chase our dream.”
Tehmeena Safdar and her family moved to Toronto from Edmonton in 2016 because of her husband’s work. They’ve been unable to get into the real estate market and have rented ever since. (Farrah Merali/CBC News)
Safdar’s story is not unique, and is becoming the growing reality not just for families moving to Toronto from other cities, but for first-time buyers who’ve lived their entire lives in the city. According to the Toronto Regional Real Estate Board the average selling price for all homes combined rose by 19.3 per cent year-over-year to $1,155,345.
And as prices skyrocket, recent data suggests people who own more than one property in Ontario make up more than 25% of buyers in the province.
It’s a stark contrast to just 10 years ago when investors made up the smallest percentage of residential real estate transactions. According to the data, they now make up the largest segment, and experts say not only is that driving up prices, it’s making it increasingly difficult for those trying to get into the market to compete in bidding wars.
Those experts are sounding the alarm not just on the potential of future economic implications, but also what this trend could mean for the makeup of big cities like Toronto.
‘It’s ruthless’
It’s a reality Jermaine L. Murray knows well.
The 31-year-old isn’t looking for a property for himself, but rather for his mother who is close to retirement and is responsible for taking care of his sister with special needs. He says she had to sell her home because of a divorce a few years ago, and whatever money she received isn’t nearly enough for a down payment on another home.
“The way that the market has been going has totally outpaced the amount of savings that they’ve been able to have,” said Murray.
Jermaine L. Murray is trying to get into the market for the first time to buy a home for his mother and sister with special needs. (Farrah Merali/CBC News)
“So it’s not even a matter of if she’s able to afford a house — she just straight up can’t.”
Murray — who has lived in Toronto his whole life — works two jobs: one as a technical recruiter and one as a career coach. But even with his dual incomes, he says it’s been a struggle.
“I’m trying to plan to get my foot in the market, and it’s like every time I try to take a step, I fall back 10 behind,” said Murray.
“It’s ruthless. It’s heartbreaking. I lose sleep.”
Competing with deeper pockets
Murray says a lot of his peers have been forced to work more than one job to make more than six figures every year: but even then, he says, many haven’t been able to enter the market.
Part of the frustration — competing with bidders with deeper pockets, many of whom can tap into equity from properties they already own.
Recent data published by Teranet in its quarterly Market Insight Report shows that multi-property owners made up more than 25 per cent of real estate transactions between January and August of 2021.
This graph taken from Teranet’s quarterly Market Insight Report breaks down buyers by segment. Multi-property buyers are orange, while first-time buyers are red. Life events (in blue) are instances where there is a transfer of ownership between people who are related, due to things like death, marriage or divorce. Over the past decade, multi-property owners have gone from the smallest segment to the largest. (Teranet)
“It’s unusual in the sense that investors now make up the biggest segment of buyers in Ontario. So they surpass first- time buyers, they surpass the number of people moving. So they’re the biggest segment,” said John Pasalis, president at Realosophy Realty.
Pasalis says the trend isn’t surprising, given how fast the market has accelerated, but he says what’s concerning is: investors can make the ups and down of the market more severe.
“The risk is that when prices are rising investors are the optimists in the market … and they actually push home prices up higher than they otherwise should be,” he said.
“But when the market cools, the investors actually become the pessimists. And they’re the first ones to exit the market, which accelerates potentially a downward trend and makes our whole housing market far more vulnerable than it otherwise would be.”
John Pasalis is the president of Realosophy Realty Inc. and a housing analyst. He says the increased percentage of investors in the market has driven prices up, making it harder for first-time buyers to get into the market. (Farrah Merali/CBC News)
While some argue more supply is needed to cool the market, Pasalis points to other cities like Phoenix, Ariz. and Las Vegas, Nev., which have room for more supply, but still saw huge real estate bubbles.
More supply, he says, could just attract more investors.
“When investors are the biggest segment of your buyer base — no amount of supply is enough,” said Pasalis.
‘That’s not going to have a great ending’
The trend is also concerning to Ron Butler, one of the founders of Butler Mortgage. He says he’s watched as investors outbid many of his clients who are first-time buyers.
“We’ve seen our clients forced to the upper limit of their affordability. But that’s the only option they have is to be at the highest point that they can possibly achieve from a borrowing point of view,” said Butler.
Ron Butler is a mortgage broker and one of the founders of Butler Mortgage. He believes the current trend of investors now making up more than 25% of transactions in Ontario is a concerning trend. (Ron Butler)
“I think we’re approaching moments of literal despair amongst some families looking to purchase homes in Ontario.”
Butler says he’d like to see intervention to stem the behaviour of investors from all three levels of government — before it’s too late.
“That’s not going to have a great ending, in my opinion. It’s just not,” said Butler.
“It’s either going to result in a generational shift of people leaving the province or it’s going to result in eventually some kind of price deterioration that’s going to catch a lot of people off side.”
As for Safdar: the family has decided that if they’re forced to move again they’ll leave the city — for good this time. For her, it’s about more than just the numbers — it’s about trying to find a community they can call home and creating some stability for their kids.
“It’s not only about buying a house. It’s a lot of emotion.”
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.
