For sale signage is on display outside a residential property in Barrie, Ont., on March 19, 2021.
Tijana Martin/The Globe and Mail
When Stephanie Hunter and Braden Bonwick were searching for a house in the Niagara region, they were given a brief opportunity to view the properties and were advised to provide a cover letter and photo of themselves as they competed with dozens of buyers for homes that were selling for $100,000 over the asking price.
“It felt like we were playing a game of chance,” Ms. Hunter said. “You have 15 minutes to look at a place while a line of agents and their clients is forming outside the front door asking if you’re almost done. Then finding out the home you just had 15 minutes to look at had 65 viewings that day and all offers have to be in by 5 p.m. tomorrow.”
Welcome to the small city housing frenzy, where Toronto and Vancouver real estate tactics have become the norm. There are no home inspections and no conditional offers – and bids are routinely well over asking.
Since the pandemic began, buyers have sought more room for their home offices, entertainment and living. That has sent prices soaring and prompted recent warnings of real estate bubbles in areas well outside Toronto – not surburbs, but places that are 1.5 to two hours from downtown Toronto and have never experienced an overheated real estate market or at least one this hot. Niagara, Barrie, Tillsonburg, Woodstock, Ingersoll, Prince Edward County, Kawartha Lakes, Grey-Bruce Owen Sound and other smaller markets in Ontario have seen home prices climb more than 30 per cent.
“At first, everybody was excited because anybody looking to move up could sell their house and they made a pretty penny,” said Jim Diodati, the mayor of Niagara Falls. “Until they realized you make more money when you sell, [but] you are also going to pay more money when you buy.”
Now, smaller cities are increasingly grappling with the same problems created by skyrocketing real estate prices – unaffordability and housing inequity – that have plagued Toronto and Vancouver for decades.
“Appreciating real estate values show that you have a desirable market. On the other end, it is becoming unaffordable for people trying to enter the market,” said Mr. Diodati, who worries about housing for younger generations. “We are asking ourselves: Is this going to be an obstacle that they cannot get past? Are we committing our kids to renting for a long, long time?”
Barrie Mayor Jeff Lehman said his city is facing the same issues: “Not being able to afford housing – that is a problem in a number of places in Canada and it is a growing problem here.”
The benchmark price of a detached house in Barrie reached $721,000 in February. That was almost $100,000 more than three months ago and about $200,000 more than a year ago, according to Canadian Real Estate Association data. Three years ago, the price of a detached house in the city was less than $500,000; five years ago, it was less than $400,000.
Barrie, which is a 1.5-hour train ride from downtown Toronto, is also now one of the country’s priciest rental markets. The average monthly rent for a two-bedroom apartment was $1,393 last fall, according to the latest data from Canada Mortgage and Housing Corp. That puts Barrie fifth, behind Toronto, Vancouver, Ottawa and Victoria.
“I am definitely concerned about this. We had an affordable housing crisis before this happened,” Mr. Lehman said, adding that lower-income workers had to move farther out of the city even before the recent surge in real estate prices.
The same run-up in prices has happened elsewhere in the past few months. Detached houses in Kitchener-Waterloo, Burlington and Mississauga have gone up by a minimum of $100,000 over three months. In Milton and Oakville, prices are almost $200,000 more than they were in November.
The average price of a house in Hamilton, a commuter city that used to be considered affordable, is almost $800,000.
In Prince Edward County, a popular vacation area for Torontonians and Quebeckers, a local realtor says prices have become disconnected from reality. Treat Hull, who has sold properties in the county for almost a decade, said his region is in a real estate bubble. “I am really worried that we’re heading for a train wreck à la Toronto in 1990. I hope I am wrong,” he said.
Even places such as Owen Sound and Niagara Falls, which have had depressed prices for decades, have seen a flood of Toronto-region buyers looking for more room and access to nature. “A lot of people in big cities are reimagining their way of life,” said Owen Sound Mayor Ian Boddy, who agrees with the other mayors that higher prices are a double-edged sword.
That was the case for Ms. Hunter and Mr. Bonwick. After 17 years of living in Toronto, they were sick of renting small, gardenless spaces and tired of the expenses that accompany city living. The couple, in their late 30s, envisioned buying their first house in St. Catharines, where they both grew up.
“Braden and I imagined we’d move back and find the perfect starter home. How difficult can that be? Ha ha,” Ms. Hunter said. The longer they looked, the pricier homes got. They turned to Niagara Falls after being priced out of St. Catharines.
Ms. Hunter said the process was “frustrating, discouraging and upsetting.”
“You have to decide quickly if you both liked it and then try to figure out what kind of number you want to throw out there in hopes that they’ll pick you, while trying not to become house poor. Then you sit and wait, only to hear they went with an offer that came in $100,000 over asking,” she said.
The couple made offers on five properties and competed against 15 to 25 buyers each time. They finally found a house in Niagara Falls for less than $450,000 and said their offer with no conditions put them ahead of the pack.
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.
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