2023 Insights: Canada’s Real Estate Market

We’ve experienced much “unusual” activity in the real estate industry during the last 2 years. This leaves many scratching their heads, wondering what to expect for the market in 2023 across Canada.

Whether you’re investing in your first home or have multiple properties, it’s very important to know what you’re dealing with regarding trends and economic projections in the real estate market before making big decisions.

Below are key insights from 2022 regarding purpose-built rental properties according to CREA (Canadian Real Estate Association) market analysis:
 

✓ Demand vs. Supply
An increase in rental demand outpaced the supply growth, pushing the vacancy rate for purpose-built rental units down from 3.1% to 1.9%.

✓ Vacancy Rates
Rates dropped in NS, PEI, and NL with a slight increase for NB.

✓ Higher Mortgage Rates
Higher rates and elevated residential prices made homeownership more expensive and less attractive in 2022. Increasing barriers to homeownership and rental demand.

✓ Significant Growth for 2-Bedroom
Tighter rental markets meant growth for 2-bedroom purpose-built apartments grew quickly from 2021 - 2022, rising from 3% to 5.6% in just 12 months. This is a new annual high, well above the 1990-2022 average of 2.8%.

For many new homeowners, it may mean finding a two-apartment home or multi-unit building to supplement income. Those interested in real estate development may want to consider a growing demographic when designing purpose-built properties and the affordability of units. 

Interested in Real Estate Investing in Newfoundland and Labrador?
Our team of experienced agents can help you through every step of your real estate journey. Whether you’re looking for properties in St. John’s, Mount Pearl, Torbay, Bay Robert’s, or over on the Burin Peninsula, and anywhere in between - we’ve got an agent who specializes in your area with a vast network and is ready to connect you with the right people.