Canada’s Housing Market: Where to Buy (and Avoid) in 2024

As 2024 unfolds, the Canadian housing market continues to reflect a tug-of-war between high borrowing costs and a serious lack of affordable homes. If you’re thinking about buying or investing in real estate this year, where you choose to buy can make all the difference. The right city could mean long-term growth and a comfortable lifestyle, while the wrong one might leave you with regrets.

Let’s break down the best cities to consider buying in 2024, which markets to avoid, and how to assess a location based on key factors like affordability, employment trends, infrastructure, and population growth.

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What’s Driving Canada’s Housing Market in 2024?

There are a few major forces shaping the real estate landscape this year:

• Interest Rates: The Bank of Canada’s rate remains high, making borrowing more expensive and dampening buyer enthusiasm.
• Inflation: Though moderating, inflation still affects everything from groceries to construction costs.
• Supply Shortages: Canada’s growing population is outpacing housing supply in most major centres.
• Population Growth: Newcomers and interprovincial migrants are driving demand, especially in cities with job opportunities and affordable housing.

Cities that offer a balance of affordability, strong job markets, and lifestyle appeal are seeing more activity — even in a high-rate environment.

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Best Cities to Buy a Home in 2024

Some smaller and mid-sized Canadian cities are emerging as real estate bright spots. These markets offer a mix of value, growth potential, and economic stability.

Halifax, Nova Scotia

With its strong population growth, affordability, and beautiful coastal lifestyle, Halifax continues to attract buyers from across Canada. The average home price sits around $511,600 — and with a relatively low mortgage cost, it remains a great east coast option.

Saskatoon, Saskatchewan

At just over $340,000, Saskatoon is one of Canada’s most affordable cities for homebuyers. A stable job market, improving infrastructure, and low cost of living make it attractive for young families and first-time buyers.

Kitchener-Waterloo, Ontario

This tech-forward region blends urban living with small-town affordability. Home to major universities and a booming job market, it’s a smart bet for long-term investors. Average home prices are just over $700,000.

Victoria, British Columbia

Yes, it’s expensive — but Victoria continues to shine for retirees, downsizers, and buyers looking for a temperate climate and strong rental potential. It’s more affordable than Vancouver while offering coastal charm and solid infrastructure.

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Cities to Avoid for Real Estate in 2024

Not every market offers promise right now. These cities are dealing with stagnating home prices, weak job growth, or population decline.

St. John’s, Newfoundland

While affordable, the region has struggled with economic challenges and high unemployment. For now, it’s better for lifestyle buyers than growth-focused investors.

Edmonton, Alberta

Though it’s attracting some migration due to affordability, home prices are seeing modest growth, and the market feels oversupplied. Short-term appreciation potential may be limited.

London, Ontario

Once a hot market, London is now facing high rental costs, labour shortages, and a cooling real estate scene. Home prices have plateaued — making it a riskier bet for 2024.

Thunder Bay, Ontario

This northern Ontario city suffers from slow population growth and a lack of diverse job opportunities. The market remains static with limited long-term upside.

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Where to Research Before You Buy

Whether you’re an investor or a first-time buyer, research is key. Here’s where to start:

• CREA (Canadian Real Estate Association): Get market reports and local pricing data.
• Local Real Estate Boards: Dig into neighbourhood trends and sales volume.
• CMHC: Offers data on affordability, housing starts, and demand forecasts.
• Bank Outlook Reports: Look at economic projections from RBC, TD, and others.
• Online Communities: Forums like Reddit’s r/PersonalFinanceCanada often share on-the-ground experiences.
• Talk to Local Pros: Agents and mortgage experts can give you street-level insights into where a market is really heading.

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Final Thoughts

Where you buy in 2024 matters more than ever. With high interest rates and uneven economic growth across Canada, picking a city with solid fundamentals — affordability, job creation, infrastructure, and population growth — is essential.

Whether you’re ready to buy now or just exploring your options, do your homework and compare not just home prices but everything that makes a city livable and investable. Need help narrowing your choices? Reach out to a mortgage advisor who knows the ins and outs of local markets.