Mounting unaffordability in other major cities was cited as a major factor
The Kitchener–Cambridge–Waterloo region has established itself as the country’s hottest new home market over the past year, according to Statistics Canada.
The trend became particularly apparent in June 2021, which was the first month since April 2018 “that Ottawa lost its title as the leader in year-over-year gains,” StatCan said.
On an annual basis, new home prices in the area grew by 24.5% in 2021, with the Kitchener–Waterloo Association of Realtors saying that home sales last year reached their highest point on record. A total of 7,581 homes were sold in the region last year, representing a record-breaking 18.3% year over year increase.
Read more: Early signs of strong 2022 market: lending giant president
Toronto’s mounting unaffordability was a major driver of this trend, StatCan said.
“Rapid price growth in Kitchener–Cambridge–Waterloo’s housing market in 2021 can be attributed to it being one of the fastest growing populations in Canada and its desirability to out-of-town buyers from the Greater Toronto Area seeking larger homes and lower prices,” StatCan said.
Kitchener–Cambridge–Waterloo also benefited from being a vital hub in Canada’s techno-corridor.
“A strong high-tech sector in the region insulated workers in this field from job loss,” StatCan said. “Some also saw their expenses reduced due to the COVID-19 pandemic, which helped build savings for a down payment. This strong demand, combined with a shortage of developed land in the area, has allowed for these tight market conditions to occur.”
