On the eve of the federal election, the real estate industry is bracing for another major shift: a real estate boom.
The sector is poised to be the fastest-growing sector of the economy for the next three decades.
The market is already on track to reach a record level of more than $100-billion (U.S.) this year.
It is expected to reach $300-billion by 2026, according to research firm Mercer, with more than half of that growth projected to be driven by new housing.
The Canadian Real Estate Association estimates that housing construction will increase to nearly 4.7 million units this year, up from about 1.8 million units last year.
The association has said it expects that by 2035, the sector will be the second-largest employer in Canada after the government.
The industry is also expecting a surge in the number of first-time buyers, which are expected to surge to more than 9.1 million this year from about 4.1 per cent last year, according a recent study by the Conference Board.
The number of people purchasing a home in the next 10 years is expected grow by almost 4 per cent to 3.2 million.
There are also signs that prices will accelerate, as a new report from the Canadian Real Property Association says prices are expected for the first time in nearly two decades to reach their highest level in more than 30 years.
The average price of a home sold in the Greater Toronto Area is expected for 2020 to hit $2.7-million, up more than 40 per cent from 2015, according the report.
This is an unprecedented level of growth, says Andrew Smith, the group’s chief economist.
The pace of home prices in Toronto is so high that even a two-bedroom home is now worth more than twice as much as it was in 2015, Smith said.
But he said that this growth may not last forever.
He expects prices to rise even more rapidly in the coming years.
“It will take time for that price to come back down,” Smith said, but said it is clear that the market is not going away.
“We’re in the midst of a big change in the housing market,” he said.
As Canada’s housing market continues to grow, housing affordability is being increasingly scrutinized.
While many of the measures used to help families purchase homes have been successful, the Canadian Association of Realtors says there is a growing body of research that suggests that the new standards, which require buyers to make monthly payments, have caused an imbalance in the supply and demand for homes in the country.
The group is calling for changes to the system, saying that these changes will help to prevent prices from going over market levels.
“A lot of people are struggling to get on the housing ladder,” said Adam Lepp, the CEO of the Canadian Realtor’s Association.
The issue of housing affordability comes at a time when the housing sector is also grappling with an increasingly crowded housing market, with millions of Canadians without homes in many parts of the country, according”
That’s why we need to change our rules so that we’re not putting people on the ladder that they might not be able afford to move into.”
The issue of housing affordability comes at a time when the housing sector is also grappling with an increasingly crowded housing market, with millions of Canadians without homes in many parts of the country, according