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The average Canadian home price is now twice that of the US

American homebuyers can take some comfort: it’s much worse in the north.

Canada’s housing market is ridiculously more expensive even than that of the US, with the country’s home prices recently hitting a new record high, making the average housing cost nearly twice that of America’s.

Since the beginning of 2020, Canadian house prices have risen by 30%, an increase that is “downright staggering,” wrote economist Robert Hogue for a recent Royal Bank of Canada report (about luck).

In February, the Canadian Real Estate Association reported that the average Canadian home price was CA$816,720 or $646,809 — more than nine times the median household income.

In contrast, the US saw slightly lower price increases, with house prices rising 27% over the same period, according to Fortune previously reported. In America, the median home price last month was $375,000, an all-time high and a 15% increase from a year earlier.

us canada average house price
In America, the median home price last month was $375,000.
Getty Images/iStockphoto

The reasons for the unaffordability of both housing markets are almost identical, experts say: The pandemic increased demand for larger apartments as they lead to “people’s jobs, children’s schools and… [the center of] Entertainment,” Canadian real estate brokerage Royal LePage President and CEO Phil Soper told Fortune.

Additionally, millennials in both countries began buying their first homes and upgrading their starter homes, while baby boomers increased demand by looking for homes to grow older in.

us canada average house price
The average Canadian home price in March is $816,720.
Getty Images/iStockphoto

All of this is coupled with a blatant housing shortage in both countries.

“[It’s] It’s hard to get my head around prices right now,” Johnny Chen, 33, the investment bank’s equity sales director, told Fortune about his ongoing struggle to buy an affordable home in Vancouver’s cutthroat real estate market. “There’s just so much competition.”

Despite being in the highest income bracket in the country and browsing listings daily, Chen notes that even single-family homes on the market in the CA$3 million ($2.4 million) range often require “significant renovations,” forcing him to continue his Search from a townhouse he owns outside of downtown.

“It’s hard to estimate how much the house will actually cost given labor and building material inflation and slower building permit processing times,” he said. “Vancouver’s real estate market is a little crazy.”

https://nypost.com/2022/04/25/the-average-canadian-home-price-is-now-double-that-of-us/ The average Canadian home price is now twice that of the US

DUSTIN JONES

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