The 2024 Re/Max Canada Changing Landscapes Report reveals that billions of dollars spent on renovations and infill development during the pandemic have increased the overall value of residential housing in Toronto and Vancouver, supporting higher prices for single-family homes despite market pressures.
National spending on home renovations up 8% to nearly $300 billion — Toronto and Vancouver lead the way
The report shows that ongoing revitalization efforts in these cities have had a significant impact on housing supply and affordability, especially in urban cores. From 2019 to 2023, national spending on home renovations reached nearly $300 billion, with an 8.0 per cent increase from the previous five years. Toronto and Vancouver were at the forefront of this trend.
However, residential building permits for single-family homes in the Toronto and Vancouver Census Metropolitan Areas (CMAs) declined by nearly 24 per cent during the same period. On the other hand, permits for multi-family housing saw a 60 per cent increase from 2014-2018.
According to Re/Max Canada president Christopher Alexander, the trend of renovating or building older homes in desired areas is expected to strengthen in the future, further driving price growth in single-detached housing.
Revitalization & gentrification
Revitalization continues to be a key factor in the rising value of housing. Renovation and infill development have transformed neighborhoods, leading to the replacement of older homes with custom-built houses.
The report also highlights gentrification, especially in Vancouver, where single-detached homes are growing larger while condominium units are shrinking. In Toronto, the decrease in vacant land properties has reduced opportunities for new single-family developments.
Stable prices: Those who can make their moves now vs later may be better off
Renovation activity, rising affluence, and intergenerational wealth transfers continue to impact the housing market, with prices of detached homes in the GTA and Vancouver seeing significant increases between 2019 and 2023.
Despite stable prices compared to 2023, those who act now may be in a better position than those in the future, according to Alexander. Re/Max anticipates that renovation and infill development will play a larger role in shaping the housing market in the years ahead.
Read the full report here.
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