The most expensive Canadian rental markets are Toronto and Vancouver. Most of the other pricey markets are also located in Ontario and British Columbia. Since the second half of 2020, the house price to rent ratio has surged, indicating that house price growth still outpaces rental growth.
The Vancouver housing market has become overheated in the past few years and is one of the world's least affordable markets. In 2016, the city council approved a one percent tax on non-principal homes which are empty for more than six months a year, in order to increase the city's supply of rental properties. According to a 2018 survey, 59 percent of the respondents believed that investment by foreigners is the biggest reason for high housing prices in Vancouver. The future of the real estate market in Vancouver is unclear, but home prices are estimated to have increased by 11.4 percent in 2020.
