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Should I Buy or Rent? A mathematical guide to help you keep up with the Joneses

1 July 2011

Canadian Housing Markets

The charts below show the performance of Canadian housing markets relative to the stock market since 2000.

Toronto

The gap between Toronto real estate and the stock market is fairly minimal since 2000 at current prices. Toronto real estate has averaged a 5% yearly increase since 2000, with a significant dip during the past recession. The stock market has experienced more volatility, but periods of higher growth after the troughs.

Calgary

Prior to 2006 the housing market was comparable to Toronto. Calgary had a period of phenomenal growth between 2006 and 2008, thanks to world energy prices. The Calgary housing market has underperformed the stock market since 2009.

Vancouver

The Vancouver housing market has essentially outperformed the stock market since 2000.

Page 1      ROI sensitivity to monthly rent
Page 2      ROI sensitivity to housing growth
Page 3      ROI sensitivity to investment options
Page 4      ROI sensitivity to down payment
Page 5      Principle paid to mortgage ratio
Page 6      Canadian housing markets
Page 7      Conclusion

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