The Challenge of Buying a Home with One Million Dollars in Canada
Planiprêt | 27 February 2024
"A dollar doesn't buy what it used to." And a million dollar budget isn't even enough according to some Canadians in search of a home.
Varied Perceptions Across the Country
Royal LePage has released its most recent report on million dollar properties. According to this report, over 20% of Canadians believe that a million dollar budget is not sufficient to purchase a residence that meets their needs in their current region. Conversely, over 60% of Canadians are convinced that a million dollar budget is reasonable for buying a residence, with 41% believing it is "more than enough" and 22%, that it is "adequate".
Regional Disparities
It is not surprising that this level of optimism varies from one region to another. Only 18% of those surveyed in British Columbia and 30% of respondents in Ontario believe that a million dollar budget is more than enough. In Manitoba and Saskatchewan, this percentage is 60%, while it is 59% in Quebec.
What Can You Buy for a Million Dollars?
What can you buy for a million dollars? It all comes down to the old adage, "Location, location, location." In Calgary, a million dollar budget is considered the starting point for current homeowners looking for a larger or more luxurious property. In Toronto and Vancouver, it's the starting point for first-time buyers.
Comparing Properties Across Canada
On average, a million dollar property in Canada offers 1,760 square feet of living space and has 3.2 bedrooms and 2.1 bathrooms. In Edmonton, your million will get you a living space of 2,675 square feet, 3.3 bedrooms, and 2.9 bathrooms. In Vancouver, for a million dollars, you will have a reduced living space of 900 square feet as well as 1.8 bedrooms and 1.6 bathrooms.
Evolution of the Real Estate Market
The statistics for 2023 are practically the same as those for 2022. According to Royal LePage, the main change concerns affordability, as ownership costs have significantly increased due to rising mortgage interest rates.
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