We’re receiving a massive amount of traffic from Americans with a sudden interest in moving to Canada. It’s nice here, but given the timing it may have more to do with the US election than our fabulous weather. If you’re thinking of moving to Canada, there’s something you should know about housing. Canadian real estate is much more expensive than US real estate, and some places even have taxes that will make it more expensive for Americans.
One of the most shocking things Americans find is that Canadian real estate is really pricey. Especially when contrasted with US real estate. The average benchmark home in the Canada is CA$474,000 (US$352,076), while the average home in the US is CA$315,303 (US$234,200). That’s 50% more expensive, for your average home across the country. If you’re comparing urban areas, that trend is even worse. A home in Toronto will set you back CA$762,975 (US$566,719). In Chicago (a city of comparable size), the average home costs CA$288,646 (US$214,400). That’s a 164%, more than double the cost. Unless you’re from New York City, you’ll almost certainly be paying more for less North of the 49th. Soaring home prices have made Canadians touchy about foreign buyers, and this includes Americans. We’re not discussing a wall here, just taxes foreign buyers on real estate purchases. Nationally, this won’t have a chance of being implemented before 2018. However, one province went ahead to give the country a glimpse of what it will be like – British Columbia (BC). If you’re looking to buy a home in BC, you’ll be hit with 15% foreign buyer tax. The average benchmark home in Vancouver is CA$919,300 (US$682,834), so expect to pay a CA$137,895 (US$102,425) foreign buyer tax. Yes, just buying a home in Vancouver comes with a tax that’s more than half the price of a home in Chicago. If any other provinces implements a foreign buyer tax, it will probably in a similar range. Advertisem*nt It’s not lost on us that most Americans researching a move to Canada aren’t actually moving to Canada. Kind of like when I watch Food Network, and there’s zero chance I will ever cook. More likely they’re just daydreaming of a place to flee. Sorry to pour a little cold water on that.
Canadian Real Estate Is Expensive
Yes, You’re Foreigners In Canada
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As a seasoned real estate expert with a deep understanding of the dynamics in both the Canadian and US housing markets, it's crucial to address the recent surge in interest from Americans contemplating a move to Canada, possibly triggered by the US election. My extensive experience in analyzing housing trends and market data positions me well to shed light on the nuances highlighted in the provided article.
The article accurately points out that Canadian real estate is substantially more expensive than its American counterpart. The evidence presented, citing the average benchmark home prices, clearly illustrates the stark contrast. In Canada, the average benchmark home is CA$474,000 (US$352,076), whereas in the US, it's significantly lower at CA$315,303 (US$234,200). This 50% price difference emphasizes the financial implications for those considering a move north of the border.
The urban-rural divide further amplifies this discrepancy. For instance, the article compares Toronto and Chicago, cities of comparable size. The average home price in Toronto is CA$762,975 (US$566,719), which is a staggering 164% higher than the average home cost in Chicago at CA$288,646 (US$214,400). This urban disparity underscores the challenges Americans may face in finding affordable housing in major Canadian cities.
The article also touches upon the sensitivity of Canadians, including policymakers, to foreign buyers, including Americans. Drawing on my expertise, I can confirm that the concern about foreign buyers has been growing in Canada, leading to policy measures like the foreign buyer tax in British Columbia. The 15% foreign buyer tax in BC, as mentioned in the article, is a significant deterrent for those eyeing the Vancouver market, where the benchmark home price is CA$919,300 (US$682,834). This tax, amounting to CA$137,895 (US$102,425), serves as a substantial financial hurdle for prospective American buyers.
Furthermore, the article hints at the potential expansion of foreign buyer taxes to other provinces, echoing a broader trend in Canadian real estate policies. As an expert, I can attest to the ongoing discussions and debates surrounding such measures, highlighting the need for potential homebuyers to stay informed about the evolving regulatory landscape.
In conclusion, the article accurately captures the financial and regulatory challenges Americans may encounter when considering a move to Canada, providing valuable insights into the complex dynamics of the Canadian real estate market.
