If you’ve ever dreamed of walking into your very own newly built house in Canada, complete with a fence, a yard and your own private driveway…you might have to rethink that fantasy because the rate of detached homes being built in Canada is declining rapidly.
The detached home used to be king.
According to a report co-authored by Robert Kavcic, senior economist at BMO, builders prior to the mid-2000s focused far more on single-family homes than on condo buildings. Thanks to a shift in the economy, family priorities and urban growth, that trend has changed significantly.
Urban living is here to stay.
According to Kavcic, the growing numbers of condo buildings will continue to outpace that of new, detached homes. “…Various factors such as urban job growth, intensification requirements and greenbelts will likely keep this theme in play,” he says in the report.
Numbers don’t lie.
In 2018, builders across Canada were working on just 54,220 detached houses, down from 63,490 in 2017. Meanwhile, other forms of housing—including condos and townhomes—came in at 142,497, over twice the number of detached homes being built.
What does this mean for Canadian buyers?
It likely means that if you plan to purchase a new-build home anytime soon, it will most likely be a condo or a townhouse. If you’re an investor, you should know that this is what Canadian tenants will be looking for, as well. If you do have your heart set on a fully detached home, your options will be limited, so you might want to look at buying sooner rather than later.