New report highlights how budgets stack up in today's market
Royal LePage has published a new report examining the purchasing power of a $1 million budget across Canada’s housing markets.
Nationally, homes valued between $950,000 and $1,050,000 in December 2023 were found to have 3.2 bedrooms, 2.1 bathrooms, and 1,760 square feet of living space. This represents a slight shift from the previous year, when similar homes boasted 2.6 bathrooms, but remained consistent in other aspects.
According to Karen Yolevski, COO at Royal LePage Real Estate Services, a $1 million budget could once secure spacious homes in sought-after neighbourhoods “in almost any market.”
But Canada’s housing markets have become increasingly varied over time, Yolevski explained. The same budget might fetch a luxurious detached home in one area or a two-bedroom condominium in another.
The largest homes in the $1 million bracket can be found in Halifax, Edmonton and Winnipeg, as noted in the Royal LePage report.
In Halifax, for example, a home valued between $950,000 and $1,050,000 has 3.7 bedrooms, 2.8 bathrooms and 2,596 square feet of living space.
Meanwhile, in the Greater Toronto Area (GTA), the average $1 million home typically offers 3.0 bedrooms, 2.3 bathrooms, and 1,459 square feet, which is less than the national average.
Shawn Zigelstein, a broker at Royal LePage Your Community, pointed out that in Toronto’s core, $1 million is considered the starting price for most property types, often fetching a two-bedroom condominium.
“Those shopping in the $1-million segment are mostly first-time buyers, newcomers and young families who are looking to transition from a rental into home ownership,” he said.
As for the Greater Montreal Area, the average home within the same price bracket has 3.8 bedrooms, 2.4 bathrooms, and 2,226 square feet, exceeding the national average.
Carolyn Forget, a broker at Royal LePage Urban, observed that the pandemic and subsequent real estate boom significantly altered what $1 million could purchase.
“Today, this budget on the Island of Montreal means that you can most often find a good-sized, but not necessarily completely renovated, single-family home in neighbourhoods farther from the centre,” said Forget.
Among Canada’s major urban centres, Greater Vancouver’s real estate market offers the least space for the $1 million price point, with average homes comprising 2.4 bedrooms, 2.0 bathrooms, and 1,187 square feet.
Adil Dinani of Royal LePage West Real Estate Services said this budget might only stretch to a two-bedroom condominium or a small townhouse in Vancouver’s downtown core, prompting buyers to consider the more spacious options available further from the city centre.
“First-time buyers make up a significant portion of the $1-million purchaser pool in the Greater Vancouver area,” Dinani said further. “With several new multi-tower developments and amenity-rich communities popping up outside of the downtown core, these buyers are more comfortable moving outward if it means they get more house for their money, especially now that remote working has become the norm in many industries.”
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