In this video interview, Chris Alexander, President of RE/MAX Canada, discusses the real estate company’s latest 2024 Tax Report and the impact of taxes and other rising costs on housing affordability in the country.
 
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TORONTO, Feb. 6, 2024 /CNW/ — While land transfer taxes and new property assessments in key markets appear to have little effect on the surface, eroding affordability levels are slowly shifting migration patterns and changing the landscape in major Canadian centres, according to a new report released today by RE/MAX Canada.
RE/MAX Canada’s 2024 Tax Report examined key markets in six Canadian provinces, including Vancouver, Calgary, Winnipeg, Toronto, Montreal and Halifax, and found governments at all levels are collecting billions from Canadian homebuyers through levies and development fees on new construction, as well as land transfer and property taxes on residential properties. Tax rate increases, in tandem with record-high housing values and mortgage rates, have sparked a post-pandemic exodus from the country’s most expensive markets, contributing to a significant uptick in interprovincial migration numbers in Alberta and Atlantic Canada in 2023. While some homebuyers were content to move outside of core markets within their province, close to 60,000 Canadians found their answer to the current housing crisis in Alberta and, to a lesser extent, Nova Scotia, New Brunswick and Prince Edward Island.
According to Statistics Canada’s Quarterly Demographic Estimates, Provinces and Territories Interactive Map, interprovincial migration doubled over already-strong year-ago levels in the first three quarters of 2023 in Alberta, with the province welcoming 45,194 people, compared to 22,278 during the same period in 2022. Alberta gained the most interprovincial migrants in the third quarter of 2023, with the highest influx coming from Ontario (6,262), followed by BC (5,269), Saskatchewan (1,579) and Manitoba (1,316). Nova Scotia also saw more than 5,000 new residents in the first three quarters of 2023, following an influx of close to 10,000 interprovincial migrants during the same period in 2022. New Brunswick’s net interprovincial total was almost 4,500 in the first three quarters of 2023, while Prince Edward Island posted a net interprovincial increase of just over 1,000. All other provinces noted negative net interprovincial numbers, with more people leaving than arriving.

                                                       
Source: Real Estate Board of Greater Vancouver (REBGV), Calgary Real Estate Board (CREB), Toronto Regional Real Estate Board (TRREB), Quebec Professional 
Association of Real Estate Brokers (QPAREB). Local boards provided  by RE/MAX brokers.  *Benchmark Price for all properties in December 
**Non-residents pay five per cent deed transfer tax in Nova Scotia ***First-time Home Buyer exemption/rebate applied to Vancouver and Toronto/GTA
“Given today’s housing market realities, it comes as no surprise that buyers are willing to travel across the country to achieve home ownership,” says RE/MAX Canada President Christopher Alexander. “In addition to affordable housing values and extensive job opportunities, Alberta is well known for its position on taxation, with no provincial sales tax and zero land transfer tax on residential real estate. Cash-rich buyers from provinces such as Ontario and British Columbia are aware that the sale of their property in Toronto or Vancouver will stretch that much further in Alberta or Atlantic Canada’s major centres. And for first-time buyers, it’s an opportunity to get into the market at an affordable price point and gain equity, as opposed to paying down someone else’s mortgage by renting.”
According to the Fraser Institute’s 24 Facts for 2024 Report, the average Canadian family pays 45.3 per cent of its income to taxes – more than the 35.6 per cent spent on necessities of life. Regressive tax policies are also to blame for the changing migrat