Picture yourself standing on an empty plot of land, imagining your dream home. You might flip through magazines, browse online galleries, or visit display homes to get a sense of what you want. Now think about walking through an already-built house, feeling the space, and knowing exactly what you’re getting. Each option – pre-built or custom-built – has its own unique opportunities and potential headaches. Building a house offers the allure of complete customization and modern amenities, while buying an existing home provides convenience and established neighbourhoods. We explore the various facets of building versus buying a house, offering insights to help you accomplish this important milestone.How Much Does It Cost to Build a HouseWhen considering building your own house vs buying an existing one, each option has distinct advantages and disadvantages. You may be wondering, how expensive is it to build a house? The initial costs of building a house can be higher compared to buying an existing home. Here are some things to consider:Land PurchaseWhen asking yourself, how much will my house cost to build, one of the first expenses you’ll encounter is purchasing the land where your house will be built. The cost of land varies significantly based on location, size, and desirability. Prime locations in urban areas or scenic spots can be particularly expensive.Design and Architectural FeesHiring an architect to design your home according to your specifications is another major expense. Architects charge for services such as creating blueprints, obtaining necessary permits, and making modifications to plans as needed. These fees can add up, especially if you require a custom design.Permits and InspectionsBefore construction can begin, you’ll need to secure various permits from local authorities. These permits ensure that your construction project complies with zoning laws, building codes, and safety regulations. Plus, regular inspections during the construction process are required so that everything is up to code, and these also come with associated fees.Contractor and Labour CostsHiring a general contractor to oversee the construction of your home is essential for most projects. The contractor’s fees, along with the wages of the construction workers, represent a significant portion of your budget. The cost can vary depending on the complexity of the project and the local labour market.MaterialsWhen it comes to materials, if you are wondering how much will my house cost to build, the expenses can vary widely based on the quality and quantity needed. From foundational materials like concrete and lumber to finishing touches like tiles and fixtures, these expenses can skyrocket. High-quality or custom materials will further increase costs.Unforeseen ExpensesUnforeseen expenses can arise at any point during the construction process. These can include delays due to weather, changes in material prices, or unexpected issues with the construction site. It’s vital to budget for these potential additional costs to avoid financial strain.Asking how expensive is it to build a house is an important question that will help you decide whether this is the option for you.The Advantages of Building a HouseBuilding a house offers numerous benefits. The most significant advantage is customization. You have complete control over the design, layout, and materials, ensuring that the final product aligns perfectly with your vision and needs. New homes are built with the latest construction techniques and materials, which means they are generally more energy-efficient and come with modern amenities. This can result in lower utility bills and a smaller environmental footprint. Plus, everything in a newly built home is brand new, reducing the likelihood of immediate repairs or renovations. This peace of mind can be invaluable, knowing that your home is built to current standards and codes.The Challenges of Building a HouseDespite the many advantages of building your own house vs buying, it also comes with many challenges. The process can be lengthy and complex, often taking several months to over a year. This time frame can be stressful, especially when dealing with unexpected delays or issues. Managing the construction process requires significant effort, from hiring and coordinating with contractors to complying with building permits and inspections. These tasks can be daunting and time-consuming, requiring a lot of patience and dedication.The Benefits of Buying a HouseBuying a house offers immediate gratification. You can move in as soon as the purchase is finalized without the wait and stress associated with building. Existing homes are often located in established neighbourhoods with mature landscaping, amenities, and community services. This can enhance the quality of life and convenience. Plus, buying a house typically involves fewer upfront costs than building one. You know the final price and don’t face the risk of escalating construction costs. The predictability and relative simplicity of the buying process can be very appealing.The Compromises of Buying a HouseBuying a house may require compromises. You might not find a home that perfectly matches your preferences in terms of layout, design, and features. Older homes may require maintenance and smart upgrades, which can add to the initial cost and effort. They may also lack modern, energy-efficient systems, resulting in higher utility bills. While you might find a home in a desirable neighbourhood, you might have less flexibility in choosing the exact location compared to building on a specific plot of land.Making Your Decision: Building Your Own House vs BuyingDeciding between building a house and buying an existing one hinges on personal preferences, financial situation, and long-term goals. Building a house allows for complete customization and the integration of cutting-edge technology and sustainable materials. However, it involves navigating complex zoning laws, potential supply chain delays, and the emotional toll of a lengthy project. Buying an existing house offers immediate availability and the potential to move into established neighbourhoods with mature infrastructure, though it may come with hidden defects or outdated systems. Moreover, the volatility of construction costs and local market conditions, as well as potential future appreciation, should be considered. Carefully weigh these factors to make an informed decision that aligns with your lifestyle and financial objectives.Whether you’re looking for the perfect plot of land to build on or an existing home that meets all your needs, RE/MAX can provide personalized support and expert advice. Find an agent today to start your journey towards finding the right property.The post Building a House vs Buying a House appeared first on RE/MAX Canada.

Does climate change affect your home-buying decisions? If so, you are not alone, according to a recent report. This past spring, BMO released the results of a study that found climate change is impacting how we engage in the Canadian real estate market. The bank’s report discovered that more than one-third (39 per cent) of Canadians say climate-related factors, such as heatwaves, floods, and wildfires, will impact their decision on where to live in the next five years.The number is higher for younger Canadians: 49 per cent for millennial homebuyers (born between 1981 and 1996) and 54 per cent for Generation Z Canadians (born between 1997 and 2012).The same report also identified pent-up demand, refinancing, and the cost of homeownership as some of the biggest factors that influence Canadians’ home-buying decisions.Meanwhile, these environmental concerns might make sense based on growing home insurance costs. A recent report by the Insurance Bureau of Canada found that 10 per cent of all homes in Canada are exposed to flood risk but do not possess the necessary flood insurance. It is estimated that the typical flooded basement costs about $43,000 to repair.Insured losses have exceeded $2 billion per year since 2008.Additionally, findings by the Intact Centre on Climate Adaptation showed that insured losses have exceeded $2 billion per year since 2008. Between 1983 and 2008, insured losses averaged about $456 million a year.Of course, the effects of climate change might be felt differently nationwide, says Steven Harris, an insurance broker and expert at LowestRates.ca. Ontario, for example, might witness greater storm severity. Alberta, as another instance, might witness increased wildfires.“The increasing severity of storms, wildfires and other natural disasters is driving up claims costs for the home insurance industry across the country,” Harris said in an interview with Global News. “This is compounded by inflation and the increase in rebuilding and replacement costs, which in turn is driving up home insurance premium prices for many consumers.”So, for prospective homeowners who are climate-conscious, where are the best places to live in Canada? RE/MAX put together a list of top neighbourhoods for climate-conscious households as part of its 2024 Liveability Report.Top Canadian Real Estate Markets for Climate-Conscious HomebuyersHere are the best neighbourhoods for the climate-conscious buyer in today’s Canadian real estate market:Toronto, OntarioIt is said that Toronto is a city within a park. In addition to the various green spaces across North America’s fourth-largest city, many amenities are quite accessible for the typical household. Rather than relying on your automobile for everything, your daily necessities are a few minutes away by foot in several Toronto neighbourhoods. The best neighbourhoods for climate-conscious homebuyers:Bay Street CorridorChurch & WellesleyGrange ParkOld TownVancouver, British ColumbiaLike Toronto, the city of Vancouver has plenty of nearby amenities. This improves the quality of living in Vancouver, especially when you are mindful of your environmental impact. When you do not need to depend so much on a car, you can certainly trim your carbon footprint. Additionally, Vancouver also shares lots of green spaces throughout one of Canada’s largest cities. Specifically, these neighbourhoods are terrific for climate-conscious households:Central Business DistrictChinatownGastownYaletownStill, it does not mean Vancouver is immune to climate concerns, especially as wildfires dominate headlines.“According to RE/MAX brokers and agents based in BC, much in line with the Leger data, affordability ranked as the top liveability criteria among homebuyers, followed by accessibility and walkability, access to amenities/downtown and greenspace. Pollution, wildfires and natural disasters were also listed as top liveability concerns for buyers in Vancouver, Kelowna and Victoria,” the Liveability report stated.Ottawa, OntarioOttawa’s neighbourhoods are fantastic places for the climate-conscious individual. You have the Rideau Canal as a beautiful natural space. The University of Ottawa has resulted in an abundance of amenities. With downtown shopping at Rideau Centre and a well-serviced public transit system, there are plenty of reasons to present the case that Ottawa is one of the best climate-friendly destinations in the country. The top climate-conscious neighbourhood in the Ottawa real estate market?CentretownMontreal, QuebecFinally, there is Montreal, Quebec. It can still claim to be one of the most beautiful cities in the country. What’s more, for families concerned about the climate, Montreal is a top destination for maintaining a climate-conscious lifestyle. But what would be the prime neighbourhood for living a green lifestyle? There is one:Milton-ParcGreen Living Is LiveabilityTo find a single-family home or a condominium suite in the Canadian real estate market does not mean you need to abandon your objective of maintaining an environmentally friendly lifestyle. As the RE/MAX Liveability Report highlighted, the country is rich in green spaces that are suitable for families, even when the climate is not at the top of their liveability factors.The post Top Canadian Real Estate Markets for Climate-Conscious Buyers appeared first on RE/MAX Canada.

Whatever happened to the 3-bedroom condo? This has become a mystery in the Canadian real estate sector and local housing markets across the country. Decades ago, it was more common to come across 3-bedroom units as the post-war construction boom facilitated the growth of new families.Fast-forward to the present. Finding 3-bedroom condos is like hitting the jackpot, accounting for six per cent of all condo sales in the Greater Toronto Area (GTA). With a lack of 3-bedroom condos in many housing markets, millennial families are forced to adapt to one—or two-bedroom apartments.RELATED READING: Read the RE/MAX Canada Condominium ReportThese days, it would appear only bachelor and 1-bedroom units are being built, whether in major urban centres or suburban communities. According to a 2020 report by the City of Toronto, fewer than one-fifth of owned and rented condominium units possessed three or more bedrooms.Meanwhile, the lack of 3-bedroom condos is not a new phenomenon either. For example, North America’s fourth-largest city, which has enjoyed a construction boom over the last several years, has witnessed a lack of 3-bedroom units for the past decade.In 2017, a joint study by Urbanation and the Ryerson City Building Institute discovered that the number of condos planned to be erected with two bedrooms or more in the next five years is far lower than what was built in the 1990s.“Construction is still tilted towards one-bedroom units,” the report stated. “Despite the coming surge of households seeking family-sized units, we are building fewer two-bedrooms proportionately than ever before.”It is estimated that only 0.1%-1.9% of vacant 3-bedroom condos are affordable for the average Canadian household.Indeed, if households come across 3-bedroom condos for sale, the prices are comparable to single-family homes. In many large cities, a 3-bedroom condo or apartment typically sells for $1 million or rent for between $3,000 and $4,000. It is estimated that only 0.1 per cent and 1.9 per cent of vacant 3-bedroom units are affordable for the average Canadian household. Some places do not even have affordable 3-bedroom rentals, including Vancouver, Calgary, and St. John’s.As Aled ab Iorwerth, deputy chief economist with CMHC, told CBC News this past spring: “These three-bedroom units are rare and expensive. It doesn’t leave a lot of options.”Additionally, some would push back against the design of the modern 3-bedroom condo, with industry experts calling them “Frankensuites.”“There’s not that many three-bedroom units on the market and many of the ones that are kind of like Frankenstein-style,” said Helen Stopps, an architectural science professor at Toronto Metropolitan University, in an interview with The Toronto Star. “You’ve got glass dividers around tiny, tiny rooms. You have a closet and can fit a bed, but you can barely walk around it.”But while some critics argue that new builds are only being constructed for investors, the reality is that regulations, building codes, and zones are contributing factors, says Stephen Smith, the executive director of the non-profit U.S.-based Center for Building in North America.“North American zoning and building codes work together to drive up the size of multi-bedroom apartments in particular, putting them financially out of reach for many parents raising children,” he wrote in a May 2024 post. “The effect is clearly that apartments, in order to provide the same number of bedrooms and give everyone a window, must necessarily consume far more floor area.”Housing affordability continues to be one of the most important issues facing Canadians today. It remains to be seen if public policymakers at all three levels of government will employ measures to enable the construction of 3-bedroom condos.A Case for More 3-Bedroom CondosHere are three under-the-radar trends unfolding in the Canadian real estate market:Many families choose to live together, be it because of the rising cost of living or caregiving needs (child care or caring for an aging parent).The Canadian government is imposing new immigration measures to allow newcomers to bring their families, even temporarily.Around a quarter of Canadians are postponing having children because of housing affordability, while another quarter is abandoning family-planning endeavours because of the high cost of housing.Over the last few years, more households have fled big-city living in favour of small-town residence. Still, despite the growth of families engaging in an urban exodus, Canada’s large cities are still attracting people and businesses. They remain the focal point for economic activities and cultural and social affairs.Therefore, as cities continue to be the premier destination for young families and newcomers, diverse housing options, like a 3-bedroom condo or apartment, will become more pressing. Experts purport that 3-bedroom condos can kill multiple birds with one stone as they address the surplus of urban housing challenges, mainly on the pricing front. The greater the number of 3-bedroom condos available, the lower the price tag, whether for purchase or rent.While a 3-bedroom can be highly beneficial to growing families and even multi-generational living, this type of housing unit can also be terrific for shared living arrangements. These groupings can work for international students, cohabitating young professionals, and individuals seeking roommates in larger spaces. Rather than having to relocate to rural areas to find a kind of dwelling, they can remain in the city and enjoy shorter commute times, easier access to crucial services, and perhaps closer proximity to work or school. This bolsters liveability!In the end, from an economic and financial perspective, constructing more 3-bedroom condos can be a strategic and wise decision for cities, businesses, and households. At a time when there is a significant gap in the supply and demand of a multitude of housing categories, another housing option can help fill the hole, stabilize prices, and meet the needs of other population segments.The post A Case for More 3-Bedroom Condos appeared first on RE/MAX Canada.