This article was last updated on 2/14/22.
Canada’s real estate market has seen steady growth over the past five years, but that growth has really skyrocketed since the pandemic began. The average price of a home grew 17.7% in 2021 alone, according to the Canadian Real Estate Association (CREA). With more and more Canadian cities passing the million dollar mark for average home price, it can be easy to feel discouraged as a first-time homebuyer. But, there is inventory out there for buyers looking in a more modest price range, too. How far will your money go? See what $500k can get you across a few of Canada’s major cities.
Edmonton, Alberta’s provincial capital, is one of the most affordable places to purchase property in Canada. It was also one of the few Canadian cities that saw a decrease in median home price in 2021. For less than $500,000, you can buy a large, detached house with three and a half bedrooms, plus a yard. While prices are rising steadily, they are not moving at the same rate as other parts of the country.
Edmonton also has the highest average household income in Canada and more affordable housing. If you’re looking for the place where your money will go the furthest, Edmonton could be your best option.
Located in the foothills of the Canadian Rockies, Calgary is best known as the centre of the country’s oil and gas industry. The city’s population has grown exponentially in the past 10 years.
With increasing demand and low inventory, the Calgary housing market is growing and the prices of homes are rising steadily. However, to buy a home in Calgary is still considerably more affordable than the rest of the country. For $500,000 you can buy a three-bed, three-bath home, with a yard. But, rising oil and gas prices coupled with lower housing costs may drive more buyers to the area and that’s likely to increase property prices.
Like many other parts of the country, Canada’s capital is seeing rapid population growth, which is driving demand. Ottawa offers a similar lifestyle to Vancouver, but is more affordable and household incomes are higher than its west coast counterpart.
Even in this growing market your money will go further than in Canada’s other big metros. Most homes are still less than $1 million and for $500,000, you can find a three-bed, two-bath home with a yard. If you have a budget closer to $700,000, you can afford a little more space and additional choices in terms of neighbourhood.
Keep in mind, limited inventory and a rising number of homebuyers is likely to drive up the cost of homes in Ottawa.
The Greater Toronto Area is the most populous metro in Canada, encompassing the city of Toronto and the regional municipalities of Durham, Halton, Peel, and York. With an ever-increasing population driving demand, Toronto has one of the fastest growing real estate markets in the country. But the sheer size of the area means there are still some more affordable options available.
In Toronto, you can find a two-bed, two-bath condo around 950 square feet for $500,000. With $700,000, you can get a significantly larger three-bed, three bath home.
Vancouver’s diversity, vibrant food and drink scene, stunning scenery, and easy access to nature’s playground make it one of the most desirable and exciting cities to live in Canada — but all that comes at a price.
Unsurprisingly, it’s one the most expensive places to buy property and your money won’t go as far as it would almost anywhere else in Canada. To buy in downtown Vancouver, with a budget of $500,000, you’ll be looking at a one-bed, one-bath condo of around 600 square feet. While you’ll have to sacrifice space, it can be an attractive investment if you’re hoping to make the most of city living.
For homebuyers seeking additional room, you can find a little more square footage if you up your budget to around $700,000.0
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This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or its affiliates.
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