What a million dollar home looks like, coast to coast

A million bucks is a lot of money for most Canadian homebuyers, regardless of what province you're in. But depending on where you are on the map, a million dollar home will range dramatically, from "average" to downright decadent.

According to Royal LePage Canada, extreme variances in recent home price appreciation have contributed to vast differences in the type of property a $1-million budget can buy. In pricey housing markets like Vancouver and Toronto, a million dollar home is an “average” home. In other markets, buyers can still find that ultra-luxury abode for that price.

A million dollar home’s location, size, proximity to amenities and its current condition ranked as the top four factors that influenced its price, not unlike homes in other price ranges. However, together, these four characteristics varied considerably from region to region, with Canada’s two hottest markets – Toronto and Vancouver – offering smaller, more dated two-storey “starter” homes when compared to larger, luxurious mansions elsewhere. While the average number of bedrooms and bathrooms typically found in a $1-million home did not differ by region as materially as the aforementioned four factors, there were noticeable differences between certain regions.

In January, 2017, a million dollar home in Vancouver had an average of 2.6 bedrooms and 2.1 bathrooms. Meanwhile on Canada’s other coast, a million dollar home in Halifax had an average of 3.1 bedrooms and 3.8 bathrooms. In Central Canada, $1 million secured an average of 3.4 bedrooms and 2.5 bathrooms in Toronto.

Where do Canadians get the biggest bank for their buck? Winnipeg wins, with an average of 4.1 bedrooms and 4 baths.

In fact, of the seven cities studied across Canada (Vancouver, Calgary, Saskatoon, Winnipeg, Toronto, Montreal and Halifax), Winnipeg provided the most living space overall, with $1 million fetching on average, a 3,505 sq. ft. luxury home in a desirable neighbourhood. During the same period, $1 million in Saskatoon secured the largest lot size of all regions, with an average of 65,838 sq. ft. In contrast, Vancouver offered prospective homebuyers the least amount of home for $1 million, averaging 1,229 sq. ft. on a 3,134-sq.-ft. lot.

“There are striking differences in the options available for those who are looking to purchase a $1 million two-storey home in Canada,” says Dianne Usher, senior vice-president of Johnston and Daniel, a division of Royal LePage. “From an older starter home in Vancouver to a waterfront property with all of the bells and whistles in Halifax, the amount of value and space that prospective buyers receive is largely dependent on the characteristics of the market in which they are located.”

When looking at inventory levels and sales activity, $1-million properties and transactions have been more prevalent in highly sought-after markets where greater demand has pushed home values higher. As a result, this has led these regions to experience a weakening in the overall value received for $1 million when compared to other areas across the nation that are less constrained by supply and demand.

While smaller regional markets have continued to maintain their value over the last decade, Canada’s largest markets have seen an erosion of affordability and quality.

“What used to be considered a luxury price point is now the status quo in Canada’s two hottest markets. Once carrying significant purchasing power, $1 million is now either below or on par with the price of an average two-storey home in Toronto and Greater Vancouver. Now, instead of a fully upgraded three-bedroom, three-bathroom, two-storey property in prestigious neighbourhoods like Rosedale or West Vancouver, you’re getting a much smaller two- or three-bedroom, two-bathroom property in need of renovation in a less sought-after location."

“What used to be considered a luxury price point is now the status quo in Canada’s two hottest markets,” Usher adds. “Once carrying significant purchasing power, $1 million is now either below or on par with the price of an average two-storey home in Toronto and Greater Vancouver. Now, instead of a fully upgraded three-bedroom, three-bathroom, two-storey property in prestigious neighbourhoods like Rosedale or West Vancouver, you’re getting a much smaller two- or three-bedroom, two-bathroom property in need of renovation in a less sought-after location.

“However, significant value can still be found in the suburbs or city centres like Saskatoon and Montreal, where homes are more affordable, landing you substantially more home with better features as a result.”

The profile of a $1 million buyer was also found to vary by region, with developers and first-time buyers dominating the $1 million two-storey property segment in Canada’s largest metropolitan areas, while wealthy young to middle-aged professional couples with children acted as the predominant purchasers elsewhere.