In the current Canadian real estate landscape, where markets vary greatly from one city to another, the dream of acquiring a house priced at one million dollars presents very different realities. Faced with a persistent housing supply deficit and buyers seeking property access, the question arises: what does one actually get for one million dollars in the various real estate markets across the country?
A thorough analysis by Royal LePageMD reveals that, for a budget around one million dollars (with a margin of $50,000), the average house in Canada, valued between $950,000 and $1,050,000 in December 2023, offers 3.2 bedrooms, 2.1 bathrooms, and a living area of 1,760 square feet, encompassing various types of properties. Compared to the previous year, the purchasing power of one million dollars in the Canadian real estate sector has remained relatively stable, despite a marked slowdown in activity and modest property price growth. For example, in December 2022, a one-million-dollar property offered an average of 3.2 bedrooms, 2.6 bathrooms, and 1,763 square feet.
“Depending on the targeted market, a one-million-dollar house can represent very different realities. In Calgary, this budget might be the starting point for a larger or more luxurious property, while in Vancouver, it is often the initial budget for first-time buyers,” explains Karen Yolevski, COO at Royal LePage Real Estate Services Ltd. “There was a time when a million was enough to acquire a large dwelling in a sought-after neighborhood. Today, this amount might mean a luxurious detached house in one area, or a two-bedroom condo in another.”
The gap between regions in terms of what a one-million-dollar budget can buy remains significant. Buyers in Canada’s large urban centers often have to make concessions on the type of residence accessible, even with a significant budget, compared to those opting for smaller and more affordable localities.
A recent survey by Leger1 for Royal LePage shows that two-thirds of Canadians (64%) consider one million dollars a reasonable budget for a property that meets their household’s needs, including 22% who deem this amount sufficient and 41% who find it more than enough in their city or region. However, 22% of respondents believe this budget is insufficient.
“With the expected decrease in interest rates this year, we anticipate an increase in buyer activity, which will undoubtedly put upward pressure on real estate prices, exacerbating accessibility issues despite a reduction in monthly ownership costs,” adds Mr. Yolevski. “Without a significant increase in supply, especially in cities like Toronto and Vancouver, the standard for a one-million-dollar property will continue to move away from large houses.”
For buyers looking for properties in the two-million-dollar range, a higher budget opens the door to much more space. In December 2023, the average residence in Canada, valued between $1,950,000 and $2,050,000, offered 3.7 bedrooms, 2.6 bathrooms, and 2,501 square feet of living space, encompassing all types of properties.
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