The Canadian property market is highly varied. One million dollars can buy you vastly different homes depending on the location. The extent to which housing types vary in different regions has been made abundantly clear by the findings of a Royal Lepage study. Your 1 million dollars really have inverse purchasing power, depending on whether you are in Vancouver, the swankier parts of the Greater Toronto Area, or Fredericton.

The mean cost of a house in Canada was reported to be $950,000 to $1,050,000 in December 2023. By standard, the house, on average, would most likely have 3.2 bedrooms, 2.1 baths, and 1,760 square feet of living space, no matter the property type. This is similar to the data from the 2022 year.

The average standard for 2022 for a $1,000,000 house was 3.2 bedrooms, 2.6 baths, and 1,763 square feet of living space. Here we can see that the difference between these two years is minimal. Only a 3 bedroom difference, a .5 bath difference, and a 3 square foot difference.

What we Learn From The Report

Regional Inequality: The report calls attention to the noticeable variation in the scope of a million-dollar allowance across different regions in the U.S. Individuals browsing for homes in extensive metropolitan areas are frequently compelled to give in more regarding the form of residence they can manage, even when possessing a budget of six zeros, in contrast to individuals browsing in diminutive, more economical sites.

According to Karen Yolevski, COO of Royal LePage Real Estate Services Ltd., the meaning of a $1 million home changes depending on the market in which it is purchased. “In Calgary, a home in this price range is considered a typical move-up point for existing homeowners. However, in Vancouver, that price point is often the starting point for first-time home buyers.”

According to Yolevski, in the past, a $1 million budget could purchase a significant amount of square footage and allow individuals to reside in sought-after neighbourhoods within almost any market. Over time, however, she has observed the stark contrast in purchasing power between cities. Today, this budget can allow prospective buyers to reside in a luxurious, detached house in one location, or purchase a two-bedroom condominium in another.

Public Opinion: According to the study, 64% of the populace think that $1 million is a respectable sum to purchase a home that is big enough in the present-day real estate market. Of this percentage, 22% believe that $1 million is actually sufficient, which reveals that their demands are low. However, 41% disclosed to the reporter that $1 million is much more than enough to acquire a good home acceptable by all standards in the present-day real estate market for their household. Meanwhile, 22% of the populace believed that $1 million is not adequate.

Regional Features: The report presents several fascinating features of several areas in Canada:

For instance, with an average square footage of 2,675 sq. ft., Edmonton is said to have the highest average square footage out of all the regions in the report, and the opposite is true for Vancouver, whose average square footage of 900 sq. ft. the lowest out of all the regions considered in the $1 million category.

In terms of the square footage of a $1 million property, Toronto and Vancouver might be a little bit small but Montreal still has a high average of about 466 sq ft than the national average.

On average, homes in the $2 million category are the largest in Winnipeg and Halifax, at nearly 4,000 square feet.

$1 million Vs $2 Million: Those looking to buy in the $2 million range will get a lot more space for their money. On average, a home in Canada in December 2023, valued between $1,950,000 and $2,050,000, had 3.7 bedrooms, 2.6 bathrooms, and 2,501 square feet of living space, including all property types.

In the future: As interest rates are estimated to go down, experts expect that this will act as a magnet to draw a significant number of buyers into the market. This anticipated rush into the housing market will ultimately place further pressure on property prices to rise, exacerbating affordability issues for potential homebuyers.

Yolevski warns that unless the supply of housing, especially in cities such as Toronto and Vancouver, is significantly increased, what is considered a standard $1 million property will continue to move further and further away from large houses.

In conclusion, the Royal LePage 2024 Million-Dollar Properties Report gives us a look at the richness of Canada’s million-dollar houses in numerous areas. For example, $1 million can buy a capacious and luxurious house in certain areas, but only a humble apartment in others, reflecting the variety of living arrangements within Canada.

With the continuation of Canada’s housing shortage and high prices, home seekers must make findings and understand the local property market where they intend to buy a property and adjust their budget to such local conditions.

Recommended Real Estate Firm

Our top pick will be Rivers Real Estate, a Canadian Luxury real estate firm. They know the various nuances in the Canadian housing market like the back of their hands. Whether you’re thinking of spending $1 million or more, you’ll find them helping you pick the best deal.

They are committed to providing all potential clients with the understanding, reinforcement, and educational preparation needed before making such an important decision. Should you feel so moved, feel free to get in touch with them directly to discover how they can help you find your dream property.