Alston Mabry on Canadian Housing
Prof. Aliber’s marvelous essay on the housing market includes an aside that bears a little investigation. He writes that Canada “is the only Anglo-Saxon country that has not experienced a significant increase in the price of residential real estate.”
According to Zillow.com’s index of overall US home prices, single family homes rose by about 100% from 2000-2006. There was, of course, substantial variation across different geographic areas. Los Angeles, for instance, saw an increase closer to 160% in that time period.
However, data on Canadian single-family home prices indicates the following increase in 2000-2006 (source):
Increase in nominal prices in $CDN:
Halifax 54.2%
Montreal 69.7%
Ottawa 67.8%
Toronto 51.3%
Winnipeg 78.7%
Edmonton 92.2%
Calgary 115.3%
Vancouver 75.4%
But if you also factor in a healthy increase in the value of the $CDN against the $US, you get these figures:
Price increase adjusted to $US:
Halifax 69.6%
Montreal 89.4%
Ottawa 87.0%
Toronto 65.9%
Winnipeg 101.0%
Edmonton 118.3%
Calgary 148.0%
Vancouver 96.7%
Maybe the keyword in Prof. Aliber’s aside was “significant”. Certainly London and New York are leaving Toronto behind. But when even Halifax is up almost 70%, you have to say that Canada has been along for this ride too. Not to mention West Van or Whistler.