When real estate markets and world economies collapsed back in 2008 Canada was affected, but not to the same extent as our neighbours to the south. Yes, the price of real estate did drop but having risen so much in the years leading up to 2008 the drop actually brought the price of homes more in line with what they should have been. What this means today is that Canada still has a fairly steady real estate market and, this is just one of the reasons why real estate investing is a good idea here.
Growing Population Means More Demand for Homes
There are other reasons too – with a growing population and increasing number of immigrants arriving in Canada on a daily basis there is always going to be demand for homes. More and more homes and apartment buildings are being constructed across the country, especially in the more popular urban centres like Toronto, Vancouver, and Calgary where the populations of these cities are growing fast. This makes these excellent places to invest because there’s a ready stock of new homes being constructed, and a large number of people coming to the city who will be keen to rent a place to live rather than to buy.
Getting a mortgage approval can be difficult for immigrants after all, so renting is a better option. Add to this the uncertainty of newly immigrated families not knowing exactly where they want to live, and again renting is the better option for them.
Around 30% of Canadian Households Rent
Even putting aside the number of immigrants entering the country each year, statistics show that around 30% of Canadian households rent their homes as opposed to owning them. This number has stayed roughly the same in both the 2006 and 2011 census results, which is good news for investors following two decades of increasing home ownership.
When you put all of these factors together they all point to making real estate investing in Canada a good idea.