Canadian housing is far outpacing the growth of its economy, shows government stats. That’s what 2020 home assessment values show, provided to us by Statistics Canada (Stat Can). Home prices added billions in value last year, as you might have guessed. What you may not know is Canadian homes have added so much value it’s now worth 3x the output of Canada’s economy.
Canadian Residential Real Estate Is Now Worth $6.1 Trillion
Canadian residential real estate prices have hit an obscene valuation, even when sandbagged. National assessment value hit $6.1 trillion in 2020, up 2.5% ($146.0 billion) from a year before. It’s not quite the growth rate you’d probably assume from monthly home sale reports. However, it is a mind-blowing amount considering this is a conservative estimate. The Queen should totally take out a HELOC on the country and buy herself a nice hot tub.
The Value Of Canada’s Homes Is 3x The Output Of Its Economy
Numbers this large are hard to appreciate without context, so let’s give it some. Canada’s housing is valued at more than 300% of the country’s gross domestic product (GDP). In contrast, US housing was worth just 170% of its GDP over the same period. As pricey as American real estate is, the value of home prices relative to its economy is almost half that of Canada…read more.