In Canada's real estate market, the price disparity between houses and condos has created a significant challenge for those looking to upgrade their living spaces.
National data reveals that houses are nearly 40% more expensive than condos, requiring over two years' worth of income to cover the staggering $214,600 difference. With rising interest rates and consistent demand dominating the market, the prospect of comfortably transitioning from an apartment to a house seems increasingly implausible.
However, a recent report by Point2Homes, examining the feasibility of upsizing from a condo to a house, has shed light on which Canadian cities offer more favourable conditions for this endeavour.
Analyzing the benchmark prices of condos and houses, as well as local median household incomes, Point2's study paints a stark picture for prospective movers in Canada's largest cities.
Even in theory, the transition from a condo to a house proves to be an arduous feat, exacerbated by the steep price surge experienced in recent years. Both apartments and houses have doubled in value over the past decade, making the pursuit of upsizing an increasingly elusive dream. Despite recent price corrections, many potential buyers find themselves in a state of uncertainty as the rug of housing affordability is swiftly pulled from under their feet.
According to the report, house prices surpass condo prices by more than double in 14 cities, primarily in British Columbia and Ontario, with the exception of Calgary, Alberta.
Vancouver tops the list as the most unattainable city for upsizing, with houses commanding prices over $1.2 million higher than condos. Closing this staggering price gap would require nearly 16 years of saving one's entire income.
Although less grim, upsizing in Toronto is out of reach for many. The nearly $762,000 price difference between a condo and a house is the equivalent of more than 9 years’ worth of income.
In 17 of Canada's largest cities, house prices exceed the $1 million mark, with Richmond, BC, Richmond Hill, and Oakville, ON, soaring beyond $1.6 million. Vancouver remains the most expensive city, with houses costing nearly $2,060,000.
Upsizing is most feasible in Trois-Rivières, QC, where it would take less than one year's earnings to cover the $44,000 price difference between condos and houses.
Apart from Trois-Rivières, only three other cities have a price gap below $100,000: Halifax, NS ($84,400), St. John's, NL ($85,100), and Sherbrooke, QC ($91,500).
Of the 14 cities where upsizing comes somewhat easier, seven are in Québec, thereby making the province the best bet for going from an apartment to a single-family home. Alternatively, for those looking to upsize in Ontario, their best chances are in Windsor and Kingston. Although houses here are more than $115,000 pricier than condos, it’s still preferable to upsizing in other cities within the province.
Considering these findings, it is clear that aspiring homeowners face significant hurdles when attempting to upsize from a condo to a house in Canada's major cities. However, a handful of cities offer more favourable conditions, providing a glimmer of hope for those seeking a larger and more spacious dwelling.
