The Early Beginnings: Pre-War Years
The Canadian housing market in the 1930s was heavily influenced by the Great Depression, which caused a significant economic downturn. Housing construction slowed to a recession during this period, with less units completed in 1935. According to historical data from Statistics Canada, this was in stark contrast to the pre-depression period, somewhere with construction booming.
Post-War Boom and the Rise of Suburbia
The post-World War II era saw a phenomenal rise in demand for housing, spurred by returning veterans and a growing population. Between 1946 and 1961, 163 million homes were built, mainly in suburbs. This was the time when suburbia emerged, and families sought affordable housing options outside of urban centers [1].
The Turbulent 1970s and 1980s
The 1970s and 1980s were marked by economic crisis and inflation, which had a major impact on the housing market. During this period, average home prices increased from $11,900 in 1970 to $17,000 in 1980, representing an annual growth rate of 7.4% [2]. However, the increase was uneven across the country, with some areas experiencing higher prices than others.
The Housing Bubble and the Great Recession
In the early 2000s, many parts of Canada experienced a housing crisis, fueled by low interest rates and speculative purchases. In Canada, house prices reached $368,919 in 2008, before the Great Recession began. The subsequent recession led to a decline in demand for housing and a period of market recovery, with prices falling in some areas.
The Road to Recovery and Affordability Concerns
The Canadian housing market rebounded after the Great Recession, with average home prices hitting new highs. By 2021, the average home price in Canada will have risen to $688,208. But this strong appreciation has led to concerns about housing affordability, especially in cities like Vancouver and Toronto.
Looking Ahead: Projections for 2024
The average home price in Canada is expected to reach by 1.2% at the end of 2024, according to Canadian Mortgage and Housing Corporation (CMHC) forecasts.
[1] https://publications.gc.ca/collections/collection_2016/schl-cmhc/nh12-281/NH12-281-1946-1.pdf
[2] https://www.cnbc.com/2017/06/23/how-much-housing-prices-have-risen-since-1940.html
