The number of people who want to buy real estate is getting smaller and even smaller, the masses of millennials are forced to rent in cities where they can build the career they dream of, and as competition increases, so do prices, as we see in the rental market in Toronto and Vancouver.

This phenomenon, according to a new RBC Economics report, is not limited to major urban centers – it’s happening everywhere.

Average Canadian rents surpass record $2,000

The average cost of renting a home in Canada hit a record $2,024 in November.

According to Rentals.ca, rental properties are up 12.4 per cent this year compared to 2021.

Despite the fact that 66% of Canadians live in their own homes, people who rent have had to cut their expenses to be able to pay their landlords. Unfortunately, according to experts, this trend will continue in the near future.

Rents have risen 2.5 percent since October and 4.9 percent in the past three months.

The cost of rent for studios in condos has risen by a record 16.6% and is now $1,918. By paying an extra $132, you can get a one-bedroom condo apartment that will cost $2,050 to rent.

A two-bedroom condo apartment will now cost $2,422 per month and a three-bedroom will cost about $2,723.

Renting a studio, one, two or three-bedroom apartment in an apartment building will cost an average of $1,345, $1,657, $2,030 and $2,318, respectively. Two-bedroom rentals showed the biggest jump in price at 12.6 percent.

Where are the highest rents in Canada?

1. British Columbia.

Rent costs in British Columbia are higher than in any other part of the country. Average rents in the province’s apartment buildings and condominiums rose 16% annually; one-bedroom apartments cost an average of $2,173, while tenants will have to pay $2,820 each month for two-bedroom apartments.

2. Ontario

Rent prices in Ontario are rising 15.3% annually: a one-bedroom apartment will cost renters $2,156 on average and a two-bedroom will cost $2,638.

3. Atlantic Canada

According to a report from Rentals.ca, Atlantic Canada has the fastest-growing rental market in the country, up 31.8% this November. Average rents in the region reached $1,716 for a one-bedroom apartment and $2,032 for a two-bedroom apartment.

4. Alberta

Despite the fact that rents in Alberta have increased by 15% compared to 2021, rents in this province can be rented at fairly affordable prices: one-bedroom apartment will cost tenants $1,283 and two-bedroom – $1,618.

5. Quebec

In Quebec, too, there is an increase in rents, but compared to other provinces, it is not so significant – 6.3%.

Highlights of the new report:

• The ranks of Canadian renters are growing rapidly. Although two-thirds of Canadian households owned their home in 2021, the number of renters has tripled over the past decade compared to homeowners.
• The shift to renting has spread widely across age groups and neighbourhoods, although younger Canadians and urban dwellers still make up the largest group.
• Rental housing has grown the most among baby boomers and in smaller cities.
• Housing affordability pressures, demographic factors and behavioural preferences currently driving these changes will continue to fuel them in the coming years.
• Bottom line: the rapid growth in the number of renters is not going to slow down.

Tenant Growth.

Canada has never had so many renters. According to the 2021 Census, nearly 5 million households rented the housing they lived in last year, up from 4.1 million a decade earlier.

Rental housing increased by 876,000 households (or 22%) compared to an increase of 770,000 households (8%).

Millennials have been renting longer than previous generations

Renting used to be a quick rite of passage to buying your first home. But there is plenty of evidence that younger generations of Canadians are not moving as quickly up the housing ladder (from rental housing to starter and larger homes). Moreover, the evidence suggests that homeownership rates among Millennials lag behind those of previous generations at the same age. And millennials have been renting for three to five years longer than their peers from the baby boomer generation.

This is not necessarily by choice. Difficult housing affordability conditions undoubtedly hinder millennials’ climb up the housing ladder – and especially their entry into home ownership.

Rental housing is a popular phenomenon among more than just the younger population

Because of pressure on housing costs, renting has historically been more common among younger age groups and urban families.

But recent census data indicate a broader shift over the past decade. Between 2011 and 2021, baby boomers (born between 1946 and 1964 and the largest generation of Canadians) surpassed millennials (born between 1981 and 1996) as the fastest-growing renter group (+4%).

In addition, the share of families renting has increased in municipalities of all sizes. Tenant growth over the past ten years has been 22% in smaller cities and 21% in larger cities.

Demographic trends are also driving demand for rental housing

Growing immigration and an aging population are also supporting the demand for rental housing. Given that most newcomers typically rent within the first five to ten years of living in Canada, rapidly growing immigration targets (from 250,000 in 2011 to more than 401,000 in 2021) have significantly increased demand for rental housing.

Of the one million recent immigrants (immigrants living in the country or in permanent residence for five years or less) living in private homes, 56% (640,700) lived in rental housing in 2018. This is nearly double the national average, making immigrants a disproportionate share of rental households in Canada.

Canada’s aging population has also contributed to rising demand. Of the 5 million renter-occupied housing units in 2021, nearly a quarter (22%) were occupied by seniors age 65 and older. That’s up 3 percentage points from 19% in 2011.

And more Canadians are choosing to live alone.

Because two incomes are often needed to cover the high costs of homeownership, many of these people end up renting. As of 2016, single people have overtaken married couples as the most common household type and will make up almost 30% of all households in 2021.

The post Is Canada becoming a nation of renters? New report first appeared on Ashley House.

Canada is the second largest country in the world after Russia in terms of land area, and has a very low population density – only three people per square kilometer. It has a consistently high standard of living, and housing prices are more affordable than in the U.S. or European countries. Located in North America, this country has the longest coastline in the world, so there are no real estate market battles for the first line of the sea. It is also worth noting that Canada today is a constitutional monarchy (the head of state is the British Queen) where English and French are federally recognized as official languages. Canadian lands were once French and then became an English colony. Today, the province with a predominantly French-speaking population is Quebec, and the rest of the country belongs to English- or bilingual territories.

In Canada, there are several types of housing available, including:

1. Detached houses: These are standalone houses, typically with a front and back yard.
2. Semi-detached houses: These houses share a wall with another house, but are otherwise separate.
3. Townhouses: These are houses that are attached to other houses in a row or block. They typically have small yards or outdoor space.
4. Apartments: These are multi-unit buildings that contain several individual living units, often with shared common areas such as hallways and elevators.
5. Condos: Condos are similar to apartments, but the units are owned rather than rented.
6. Manufactured homes: These are houses that are built offsite and then transported to their final location.
7. Co-housing: This is a type of housing where residents live in separate units but share common spaces and resources.

Overall, the type of housing available in Canada can vary widely depending on the location and the individual’s needs and preferences.

This division is very convenient for immigrants – they can choose the part of Canada whose language (together with the corresponding culture) is closer to them. The fact that since the 1960s, Canada has embraced multiculturalism and the whole world is now represented in the country is also very encouraging. Many cities have neighborhoods dominated by national minorities (e.g. Chinese, Italian, Portuguese neighborhoods in Toronto and Montreal) and there are regular festivals dedicated to the heritage of different countries.

Buying property by foreigners in Canada

Previously, the country has a well-established program for obtaining a residence permit for the purchase of real estate, but the flow of those wishing was so great (despite the fact that to obtain a legal resident card, issued as soon as possible, it was necessary to invest their money in housing premium-class) that Canadians have stopped coping with it, and in 2014 decided to close it. Canadians explained their motivation by the fact that due to rising real estate prices, which were fueled by strong interest from investors from abroad, not all local citizens could afford to buy housing. In Canada, it is very common for people to renovate their basements and turn them into full-fledged housing. This way they increase their living space, and there are specialized companies for such renovations, such as CSG Renovation https://csgrenovation.ca/basement-renovations-barrie/.

Features for foreign buyers

Also, in some provinces, were imposed restrictive mechanisms regarding foreign buyers, for example, in Ontario, where for keeping up the growth of the cost of houses and apartments for local buyers, began to collect a tax of 15% on the value of transactions with housing in the region of Toronto with the buyers who are not citizens of Canada. After the abolition of the program for the issuance of residence permits for the purchase of real estate in the country there was a unified migration program, similar to the American green card, where you need to collect a certain number of points to get a residence permit. They accrue for language skills, availability of an employer’s invitation, high qualifications, etc.

Electronic selection system for immigration

In 2015, the country launched an electronic selection system for immigration applicants called Express Entry. Its key objective is to evaluate foreigners for Canadian residence permits as objectively as possible. To use the system, you need to go to the official website of Citizenship and Immigration Canada, register on the site, pass a series of tests and get a score of usefulness for the country. 

Holders of a high score from the Express Entry system are virtually guaranteed to receive a residence permit. After the test, they receive an invitation to apply for a residence permit by email. At the same time, the basis for a residence permit may also be an investment – for this the applicant must prove the availability of ideas and finances for implementation. Investors are required to invest more than 1.2 million Canadian dollars ($ 933,000) in one of the government programs for a period of 5 years.

Removing the reason for foreigners to buy a home in Canada has not affected the decline in interest in the purchase of housing in this country by foreigners, because most see Canada as a place to emigrate, not as a “cottage on the sea”, etc. Real estate is bought anyway, and the right to stay in this country permanently is obtained in a different way. But it is worth noting that under the previous system, foreigners were applying for a residence permit to Canada for the purchase of real estate with the aim of obtaining a second passport and dual citizenship by naturalization, which under the current programs is difficult to implement.

According to a study by Global Wealth Migration Review, Canada is attracting more and more wealthy people from the EU and China, with Europeans preferring to buy homes in Toronto and Montreal (Quebec), and Asians – in Vancouver. Today, Canadian law does not restrict foreigners in the acquisition of housing with the exception of recreational areas, so a citizen of any country can conduct all real estate transactions in Canada – buy, own and sell on an equal basis with Canadians.

Real estate market

According to 2022 data, real estate values in Canada are up an average of 11%. But prices and increases can vary from region to region. The highest home prices are found in the country’s largest city, Toronto. Despite the fact that it is not the capital, it is home to a third of the population of Canada, which has made the city a business, economic, industrial and educational center. The largest Russian-speaking community is located here, so there are many kindergartens and schools for our compatriots in Toronto. Buying a small studio will cost $200,000 (hereinafter – US Dollars), a mid-size apartment – $400,000, a townhouse – $500,000, and the cost of a private home will tend to 1 million dollars.

In metropolitan Ottawa, a relatively small city, real estate prices are lower – the cost of a one-bedroom apartment will be $150,000, and a private home with a small area – $400,000. In the cultural capital of Canada and the largest city of the province of Quebec, Montreal, the purchase of a one-bedroom apartment in the city center will cost $200,000, the price of a private home – $300,000. Vancouver – a key city on the west coast of Canada, it is here there is real estate with the most picturesque views of the ocean and mountains. Such characteristics significantly affect the pricing: the price of a one-bedroom apartment will cost $400,000, and the purchase of a house will cost $600,000.

The post Canada Real Estate Market first appeared on Ashley House.

Why more and more people are buying real estate with cryptocurrency

Cryptocurrency is a type of digital asset that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrency is decentralized, meaning it is not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Since then, thousands of other cryptocurrencies have been created.

Cryptocurrency is often seen as a speculative investment, as its value can be volatile. However, over the past few years, we have seen cryptocurrency become more stable. This stability makes it an attractive investment option, especially for those looking to invest in real estate.

5 Tips For Buying Real Estate With Cryptocurrency in Canada

With the recent boom in cryptocurrency, more and more people are looking for ways to invest their digital assets. One popular option is to purchase real estate in Canada. Here are five tips for buying real estate with cryptocurrency in Canada:

• Get a professional evaluation of your crypto holdings. Before you start looking at properties, it’s important to get a realistic idea of how much your crypto is worth. A professional evaluation will help you determine how much you can afford to spend.
• Find a real estate agent who is familiar with crypto transactions. Not all real estate agents are familiar with the ins and outs of crypto transactions. So, it’s important to find an agent who is comfortable working with cryptocurrency.
• Be prepared to pay in cash. Unlike traditional mortgages, most lenders will not accept cryptocurrency as collateral for a loan. This means that you’ll need to pay for your property in full using cryptocurrency.
• Use a reputable escrow service. When purchasing property with cryptocurrency, it’s important to use a reputable escrow service to protect yourself from fraud.
• Consult a tax advisor. Cryptocurrency is subject to capital gains tax in Canada. So, be sure to consult a tax advisor before completing your purchase to ensure that you comply with all applicable regulations.

Why buying real estate with cryptocurrency is a smart investment

There are a few reasons why buying real estate with cryptocurrency is a smart investment.

First, cryptocurrency is borderless. This means that you can buy property anywhere in the world without having to worry about currency exchange rates.

Second, cryptocurrency is fast and efficient. Transactions can be completed quickly and easily, without the need for a middleman such as a bank or real estate agent.

Third, cryptocurrency is private. When you buy property with cryptocurrency, your personal information is not shared with anyone. This can be a great advantage if you value your privacy.

Fourth, and perhaps most importantly, buying real estate with cryptocurrency is a smart investment because it is an emerging market. As more and more people start using cryptocurrency, its value is likely to increase. This makes it a great investment for those looking to get in on the ground floor.

What is cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. It is not issued by any central authority, making it decentralized. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often compared to traditional fiat currencies, such as USD, EUR, and GBP. However, there are several key differences between the two. For one, cryptocurrencies are not regulated by any government or financial institution. They are also incredibly volatile, meaning their value can fluctuate wildly from day to day. Finally, cryptocurrencies are often used for illicit activities due to their anonymous nature. Despite these risks, many people see cryptocurrencies as a viable investment opportunity. Their popularity has only grown in recent years as more and more businesses begin to accept them as payment.

If you’re thinking of buying real estate with cryptocurrency, these are just a few of the reasons why it’s a smart investment. In our next blog post, we’ll discuss some of the things you need to know before you make your purchase. Stay tuned!

The post Tips for Buying Real Estate with Cryptocurrency in Canada first appeared on Ashley House.

The past two years have seen massive complexities in the migratory movements of homebuyers across Canada. The new pattern we have witnessed is that urban populations have decreased while rural populations have increased significantly. This marks the sign of a new era in the world of real estate, one that might give birth to a new breed of rural cities.

The science behind urbanisation

As we all know, urban cities are never built in a single day but rather slowly and steadily over decades. It is the sheer amount of population rise that gives way to the demand for infrastructure and development. Simply put, the more people who move into the area, the more houses, buildings, shops and hospitals they’ll need. All this mixed together results in the growth of the real estate market.

Take, for example, Toronto, arguably the most urban and popular metropolis in Canada. Some would even say that Toronto is the New York City of Canada, and they wouldn’t really be wrong with that assessment. It has a massive population, a booming economy, and not to mention, majestic skyscrapers that shine in the distance. This is the perfect example of a Canadian mega city.

However, Toronto wasn’t always the urban hotspot that we see today. In fact, just a few decades ago, it was nothing but a couple of villages in the backwoods. It wasn’t until 1834 that it could actually be termed a ‘city’, following steady growth in population and infrastructure. So, what caused this rapid growth which made it one of the most commendable cities in Canada? The answer is industrialisation.

Industrial projects always attract huge populations, which increases the demand for housing, which leads to new housing and infrastructure projects, which further attracts more people. This cycle goes on and on, rapidly increasing the value of real estate in the area and creating an economic boom. Well, at least that’s how it used to be.

Where are Canadians moving?

For the last two years, Canadians living in cities have decided to move out and settle somewhere quieter instead. This has given rise to many new sub-city hotspots, which have seen a considerable rise in population growth. A 2022 census states that Ontario towns like Oakville, Clarington, Milton and Oshawa have seen a 10% to 20 % spike in population. These are just a few examples of localities which have been positively impacted by this new migratory trend.

It seems Canadians have realised that the housing market in megacities like Toronto has reached a point where there is more demand than supply. This creates a real estate bubble resulting in massive price hikes and desperate bidding wars amongst competing buyers. Naturally, this negatively impacts the average home buyer, as they have to pay more to get less.

On the other hand, moving to one of the many up-and-coming sub-cities located in Ontario could save them the painful ordeal of overpaying. As it is, the average price of a two-bedroom apartment in Toronto is somewhere around $ 450,000. Meanwhile, people moving to a sub-city like Woodstock can get a spacious house for the entire family for that same price.

What’s more, because of the normalisation of working from home, people are no longer grounded by a particular city or town. A person employed by a Toronto company can still shift to Woodstock while working from home. This opens up a new set of possibilities for the average homebuyer, who is finally free to make his/her own decisions. And that’s exactly what’s been happening all over Canada for the past two years.

What does this mean for the Real Estate market?

For the rural real estate market, this means a new brand of opportunity which will create more demand. As more and more people move into rural areas, it creates a natural demand for infrastructure and housing projects all across the countryside. The market in these areas will become extremely busy, with property demands going up for the foreseeable future. In the long run, this will lead to overall development, which will result in new megacities springing up.

For the urban real estate market, the aftereffects are somewhat mixed and complicated. A large exodus of people from urban cities means the market will open up, creating a much-needed relaxation in supply. No longer will the housing market be choked for supply only to barely catch up with the overwhelming demand. The good news for homebuyers is that they can expect property prices to go down. On the other hand, homeowners who have invested in the property market might suffer losses.

Is rural Ontario the new Real Estate hotspot?

When a mammoth-sized population moves into a stagnant and spacious town, it jumpstarts the real estate market in that area. We can see the same thing happening in Ontario, where most Canadians seem to be settling in.

Places like Wasaga Beach, Woodstock, Collingwood, Arnprior and Carleton Place have all witnessed significant population hikes over the past two years. This effectively proves that rural Ontario will have a considerable demand for housing development for the foreseeable future.

An important thing to note is that the real estate markets in some of these places are still in their early stages. For example, the average home price in Carleton Place is $ 252,000. This can be considered somewhat of a homebuyer’s dream. Similarly, a family moving into the tiny town of Arnprior can buy a spacious home for just $ 276,000. So, this can definitely mark the start of an ever-growing and prosperous rural real estate market.

How do you find the best real estate deals in Ontario?

Ontario is a big place with countless real estate properties available to the average home buyer. You’ll definitely need a lot of help if you’re moving into a new town or city in Ontario.

HomeAds is one of Ontario’s most reliable and trustworthy professional real estate agencies. They have a great foothold on the entire province and can present you with outstanding real estate deals no matter where you’re moving to. The Barrie-based agency comes with countless positive reviews from all of their satisfied customers. You won’t be disappointed!

The post Real Estate in Ontario, Canada; A Human Migration Story first appeared on Ashley House.