Infill and renovations propel housing prices in Toronto and Vancouver

Scarcity in Canada’s most expensive real estate markets is pushing single-detached homes into “unicorn” status, according to a new RE/MAX Canada report. Billions invested in infill and renovations during the pandemic have significantly increased housing values, particularly in urban centers like Toronto and Vancouver.

Between 2019 and 2023, nearly $300 billion was spent on renovations nationwide, yet the value of single-family building permits has declined.

Christopher Alexander, president of RE/MAX Canada, highlighted how renovation and revitalization trends are reshaping the housing landscape, especially with limited land available for new construction.

Older homes are being transformed, driving prices higher, as urban cores become increasingly gentrified. This dynamic is expected to further intensify demand for single-detached homes, potentially limiting supply and raising prices in the future.