The idea of a “starter home” used to be simple. Buy a small, affordable home. Build some equity. Move up when you can. But today, with how the Canadian real estate market has shifted, it’s fair to ask—are starter homes still a thing?
In many cities, probably not in the way they used to be.
Housing prices have outpaced income growth for years. What used to qualify as a starter home—a detached or semi-detached house with two or three bedrooms—now sits well above what most first-time buyers can afford. In places like Toronto and Vancouver and increasingly mid-sized cities like Halifax and Kelowna, “starter” might now mean a one-bedroom condo.
Your options vary depending on where you are. In smaller towns and some Prairie provinces, you might still find entry-level homes under $300,000. But in major markets, breaking into ownership often means settling for smaller spaces, older buildings, or longer commutes.
The other shift is how people think about their first home. Many buyers now stay longer in that first place. Instead of climbing the property ladder every five years, more people are buying once and holding onto that home for a decade or more. That changes how you should approach your purchase. If you’re likely to stay put, it’s worth thinking harder about what you need long-term, not just what you can scrape into today.
There’s also a growing number of buyers skipping the starter home altogether. Some rent longer, save aggressively and wait until they can afford a home that fits their needs long-term. Others buy with family, co-own with friends, or buy income properties to make the math work.
So yes, starter homes still exist. But they look different. Smaller, more urban, sometimes more expensive than you’d expect. They’re still a way to get into the market—but not always the first step on a short ladder.
If you’re thinking about buying your first place, focus on value, not just price. Think about location, condition, and long-term livability. Starter or not, the right home is one that works for your budget and your life.
