Edmonton was the third worst city when it comes to housing shortages in Canada, according to a study conducted by Easy Renovation. While Canada’s home prices have levelled out this year, Easy Renovation said Canadians face obstacles to accessing affordable housing and homeownership. The Canada Mortgage and Housing Corporation expects the country to face a housing shortage of 3.5 million units by 2030. “While housing shortages are a national concern, the severity and impact of limited housing supply will vary depending on where you live,” said Easy Renovation in a blog post.“Rising populations and economic growth can increase demand (and competition) for affordable housing, and housing supplies often aren’t keeping up.”While Edmonton’s population grew 7.3% from 2016 to 2021, Easy Renovation said more than 100,000 people moved to it from 2021 to 2023 — another population increase of about 10%. It added many people moved to Edmonton because of its affordable housing in the higher-paying job market. Edmonton’s housing prices are rising fast — up 7.4% from 2023 to a $440,000 average home price in July. Its sales-to-new-listings ratio (SNLR) indicates a housing market favouring new sellers. Easy Renovation said Sherbrooke, QC, was the worst city in Canada for housing shortages. It pointed out Sherbrooke had the highest increase in home prices from 2023 to 2024, growing 20.8% to the current average of $476,000. This jump in housing prices is a sign of a shortage. Its 71% SNLR shows demand for housing is high compared to supply, which indicates Sherbrooke's housing market favours sellers. Halifax was the second worst city for housing shortages in Canada. On top of the 9.1% population growth from 2016 to 2021, Halifax’s population grew another 4% in 2023 to its current estimated 492,000 residents because of high international migration.This historic growth has kept the housing market hot, with the 88% SNLR the highest of the cities it surveyed. The average home price increased by 0.5% year over year to $572,000 in July. While Edmonton came in third place, Saskatoon finished fourth. Like Edmonton, Saskatoon’s living costs are among the most affordable in Canada, as the $402,000 average home price was the second lowest among cities surveyed. Housing might not stay affordable in Saskatoon for long. This is because it has seen a 10% increase in home prices in the last year. Calgary came in fifth place. Calgary’s home prices are up 12.5% in the past year to the July average of $607,000 — the second-highest price increase among cities surveyed.It was a seller’s market, with a 66% SNLR. Additionally, its population grew 10% in five years and continues to grow, which means its limited housing inventory will continue to lag behind housing demand in 2024 and beyond. Easy Renovation went on to say Toronto was the best city for an easing housing inventory. It said the easing of housing shortages in Toronto stems from slowing demand, particularly for condos. This can be seen in the 33% SNLR — the lowest of all cities surveyed. While the average home price fell 5% in the past year, it sits at $1.09 million. Hamilton was the second best city for an easing housing inventory. Hamilton's prices fell 7.2% from August 2023 to August 2024 — the largest price decrease among the cities surveyed.The average home price in Hamilton sits at $786,000. Home sales have fallen to a 40% SNLR, which shows the market is balancing out. Windsor, ON, came in third place. Windsor’s SNLR remains at 40%, leaning in favour of a buyers’ housing market. While prices were stabilizing, fewer buyers and more inventory is a sign the Windsor market is more balanced. The average home price in the area is $595,000 — down 2.2% from July 2023 to July 2024. Vancouver finished in fourth place. Out of all of the cities surveyed, Vancouver had the highest average price at $1.28 million as of July. This is an increase of 1% from July 2023 to July 2024, and home prices are expected to stay steady through the end of the year. Home listings rose over the summer and sales stayed steady, creating a balanced market that somewhat favours buyers per Vancouver’s 42% SNLR.Victoria rounded out the top five. Victoria’s housing prices dropped 1.1% from July 2023 to the July 2024 average home price of $883,000. Sales have slowed as the housing market stabilizes after five years of disruption. While housing demand is easing, Victoria’s population growth is likely to keep it high and indicates there is continued need to construct new housing to keep prices affordable.The Royal Bank of Canada (RBC) said in August significant changes have been seen in most of Canada’s largest markets, with the supply of homes for sale increasing and tapping the brakes on the rate of price increases..Increased housing supply moderating rate of price increases in major Canadian cities .However, RBC Assistant Chief Economist Robert Hogue said expectations of rising sales after two rate cuts by the Bank of Canada have not materialized. “After a small uptick between May and June, resales fell again in some markets, including Vancouver, Calgary, and Toronto in July,” said Hogue. Easy Renovation analyzed the 20 most populous cities according to census data to determine which ones were facing the most acute housing shortages. To do so, it analyzed and ranked all 20 cities based on population growth from the 2016 to 2021 census counts, SNLRs, and home price changes from July 2023 to July 2024.
