According to the Canadian Mortgage and Housing Corporation’s report, released on April 27, purchasing a house in the prairie provinces will be more achievable within the next few years.

The CMHC report provides an overview of housing supply and costs from 2023-2025.

The broad countrywide viewpoint indicates that the housing supply will be insufficient to fulfill the housing demands. According to the report, even though the prices have dropped, purchasing a house will be pricey due to the elevated mortgage rates and increased price levels.

The Bank of Canada unfailingly increased interest rates until the end of 2022, which led to the current 4.5% interest rate. Due to this, the purchases of large goods have become more pricey. It also impacted the overall buyer’s spending.

Besides this, the CMHC report also outlined the countrywide viewpoint on rentals.

According to this, rental attainability is also expected to decline because the demand surpasses the supply. This is especially true for Toronto and Vancouver, which record the highest number of beginners in the country.

As per the regional assessment, the prairie provinces and the Atlantic region provide better stability.

Canada’s Prairie Provinces

Compared to other Canadian regions, the Prairie Provinces of Alberta, Manitoba, and Saskatchewan are likely to witness housing market developments.

As per the report, in 2023, prairie provinces will show a tiny decline in new housing construction (total number of private homes under construction).

Additionally, the report mentions that over the forecast period, high interprovincial migration in prairie provinces has positively impacted the housing market compared to other regions of the country.

As per the recent Canadian Real Estate Association report, the average house cost in the prairie provinces is less than $470,000.

In addition, it mentions that in 2023, the rise in housing costs will decelerate because of the smaller demand for single-detached homes in preference to condominiums and townhomes.

Since the demand for lower-priced homes is increasing, the market is expected to be pressured to cut down the prices.

Housing Market in Ontario, Quebec, and British Columbia

Canada’s three provinces, including Ontario, Quebec, and British Columbia, might witness a reduction in new housing constructions in comparison to other provinces.

Canada’s largest housing markets, Toronto, Vancouver, and Montreal, are already experiencing a shortage of housing supply.

According to Vancouver data, due to raised construction and financing expenses as well as a shrinking consumer base for condominiums, it is anticipated that the number of house starts will decline in Vancouver.

Additionally, it’s anticipated that the demand for rentals will grow faster than the supply of purpose-built rentals.

There is a similar prediction for Toronto. The city emphasizes the increased housing costs and a construction backlog over the following two years as notable factors in the reduced housing supply.

Regarding rental conditions, these are also predicted to remain stressed.

According to a famous apartment listing website, Zumper, the average one-bedroom apartment rent is currently $2,400 in Toronto.

The Atlantic region in Canada

Canada’s Atlantic regions, including Nova Scotia, Prince Edward Island, New Brunswick, Newfoundland, and Labrador, are considered reasonable in comparison to the other areas.

Since the peak in April 2022, the housing costs in the largest city of the Atlantic region, Halifax, have been progressively decreasing.

However, the low inventory of houses for sale is increasing the costs.

As per the report, the city remains inexpensive for homebuyers outside the province. In addition, it mentions that it is expected that numerous housing stars will be completed by the end of 2023, which will release some pressure on the housing market.