Across Canada, home prices have continued to steadily climb over the past five years — past the point of affordability for some prospective buyers, who have had to turn their attention to the rental market instead in hopes of finding budget-friendly accommodations. 

However, with rental prices also steadily increasing over the past few years, some have begun to wonder if it makes more sense to invest in the long haul and purchase a property. 

A new Zoocasa study recently analyzed data from major markets across Canada and compared how average sale prices have changed in the last five years compared to how average rental prices have changed at the same time. 

All average sale prices were sourced from the Canadian Real Estate Association (CREA) and all average rent prices were sourced from Rentals.ca. 

Photo: Zoocasa.

On a national level, rental prices have increased at a greater pace than sales prices. While the average sale price in Canada was $536,100 in October 2018, this figure climbed to $731,000 in 2023, representing a 36.37 per cent difference. 

The average rent price in Canada also increased from $1,270 in October 2018 to $2,109 in 2023, representing a 66.06 per cent difference. 

In Toronto, the numbers look a bit different, with sale prices increasing at a greater pace than rent. In October 2018, the average sale price of a home in the city was $758,000 — a notable difference from the average sale price of $1,103,600 today. 

Photo: Zoocasa.

In contrast with the national trends, the average rent price in Toronto climbed by 34.04 per cent from October 2018 ($2,250) to October 2023 ($3,016). 

The greatest increase in average sales prices was actually found in Halifax, where prices nearly doubled from $282,800 in 2018 to $528,200 in 2023 — representing an 86.78 per cent increase. 

Overall, Toronto had the third-highest increase when it came to sales prices behind Halifax and Montreal, and the fourth-highest increase in rent prices behind Vancouver, Montreal, and Calgary.