Canada’s luxury housing market is becoming increasingly regional, with smaller and mid-sized cities seeing stronger high-end housing activity as buyers seek value, lifestyle benefits and economic opportunity outside the country’s largest urban centres.
BNN Bloomberg spoke with Barry Cohen, broker/owner at RE/MAX Realtron Barry Cohen Homes Inc., about growing luxury housing demand in cities such as Edmonton, Calgary and Ottawa, the role of migration and taxation, and why buyers continue to prioritize space, privacy and lifestyle amenities.
Key Takeaways
- Luxury housing demand is broadening beyond Toronto and Vancouver, with stronger sales growth in several smaller and mid-sized Canadian cities.
- Migration, population growth and diversified local economies are helping drive luxury home purchases in markets such as Calgary, Edmonton, Ottawa and Saskatoon.
- Buyers remain focused on value, seeking larger properties, more land and lifestyle amenities at lower price points than Canada’s largest cities.
- Taxes and affordability concerns continue to weigh on luxury housing activity in Toronto and Vancouver, contributing to a more cautious buying environment.
- Privacy, space, turnkey homes and lifestyle-oriented features such as waterfront access and recreational amenities remain key priorities for luxury buyers.
Read the full transcript below:
LINDSAY: A new report from RE/MAX Canada suggests Canada’s luxury real estate market is becoming more regional. While high-end sales have cooled in traditional powerhouses like Toronto and Vancouver, smaller and mid-sized markets are seeing strong growth as buyers chase value, lifestyle and economic opportunity. Joining us now is Barry Cohen, broker and owner of RE/MAX Realtron Barry Cohen Homes. Good morning. Thanks so much for joining us.
BARRY: Good morning, Lindsay.
LINDSAY: Let’s talk about that headline, which is that luxury demand is broadening beyond Toronto and Vancouver. What do you think is driving that shift?
BARRY: Well, I think Toronto and Vancouver have always led the way, and they’re still very important hubs. But you’ve seen these other regions that are rich in diversified employment, technology, manufacturing, natural resources and, in many provinces, lower taxation. They have now become the alternative, simply because they’re more attractive in land size and house size, and often amenity-rich.
LINDSAY: So it sounds like that’s not a temporary trend. That’s a structural change moving forward?
BARRY: I don’t think it’s temporary. I think people have taken notice. You think about Edmonton up 47 per cent. I mean, that’s just magnificent, right? But we had growth in seven of the 12 major cities across Canada, so that’s pretty good.
LINDSAY: Can you go over those numbers for some of the growth that we’ve seen? Because I’ve got some of the numbers, like Edmonton jumped nearly 48 per cent, which is pretty shocking. Toronto luxury sales fell almost 17 per cent. What are the other cities that we’re seeing more luxury homes being sold in?
BARRY: Saskatoon at 27 per cent, Ottawa 17, Calgary up 13.
LINDSAY: I’ve got Winnipeg on there, Montreal. Were you surprised to see this shift starting to develop?
BARRY: Yes, because I think Toronto, although prices are down, is still very attractive now. I think buyers are migrating between provinces, and they’re looking for economic opportunity. So I’m not surprised that some of these other smaller markets are getting the attention, just because of a lower entry point and diversity and amenity.
LINDSAY: So this isn’t a matter of — because we know for a lot of homebuyers outside of luxury homebuyers, interest rates, the economy and global trade are some of the factors that are keeping buyers back on the sidelines. That’s not a situation here in Toronto, in the luxury housing market, is it?
BARRY: Well, it is, because I think there still is a wait-and-see approach. Toronto, much like Vancouver, is unfortunately rich in taxation. We have the land transfer tax that was raised once, and then the mayor, in her wisdom, raised it again just in April. Vancouver has its version of a speculation tax. Both cities have vacancy taxes. These are the things that affected the market. So I think that, at some point, some of that taxation — I’m hopeful rather than convinced — will be reduced because it has affected the market. Yet these two hubs remain the main attraction in Canada. But look what’s happening across Canada.
LINDSAY: And the report points to migration as a major factor supporting luxury demand in cities like Calgary, Saskatoon and Ottawa. How important is population growth in today’s market?
BARRY: Well, I think it’s very important. It’s not just foreign migration, but it’s also interprovincial migration. But let’s circle back to foreign migration. I think that the foreign buyer ban is due to expire in January, and if Carney, in his wisdom, lets that happen, I think we’ll see a stable and consistent growth rate across Canada. So it’s very important.
LINDSAY: We’re hearing also that buyers are becoming more selective and value-focused. What does a luxury buyer look for now in 2026? What are some of the things they’re watching for?
BARRY: Well, I think they’ve always looked for privacy. So you get expansive lands in some of those other populations, but they’re looking for luxury, they’re looking for youth, they’re looking for size of home and size of land and amenity. Natural resources in the case of Saskatoon and the Prairie provinces, and then you’ve got potentially lower provincial taxes. So they’re very focused on expense.
LINDSAY: Lifestyle properties are also high in demand. I’m wondering if you can explain what exactly a lifestyle property is, first of all?
BARRY: Well, a lifestyle property usually means it’s amenity-rich. Everybody has their wish and dream, but it really comes down to size of home, size of lot, age of home or last renovation, and what are the amenities? Home theatres, play areas, tennis courts, pickleball courts — all those things are wonderful. Or is the neighbourhood amenity-rich in community assets?
LINDSAY: It sounds like these are some of the things people have desired ever since the pandemic era. Is that still influencing buyer decisions, do you think?
BARRY: Very much so. I hope that was the last pandemic, but some people see that it may not be, and they are still seeking out these amenities. Families are enjoying it. We see it all the time, asking for certain things: wine rooms, theatre rooms, play areas, proximity to parks, proximity to waterfronts. All those things play a role.
LINDSAY: What about lower borrowing costs compared with a year ago? How does that factor into the luxury market outlook?
BARRY: Well, I think it’s important because when you combine the interest rate with the taxation, everything becomes one expense. People are choosing areas across Canada based on cost of living. So I think whether the interest rate is four per cent or six per cent, it’s still relative to the activity that’s happening across the nation.
LINDSAY: And just lastly, looking ahead to the second half of 2026, do you expect luxury activity in Toronto and Vancouver to recover, or are these secondary markets still going to continue to grow?
BARRY: I think the secondary ones will continue to grow. But if you look at Toronto as an example, I think where we are, because of taxation — I don’t say bad government, because of taxation — we had a really long, cold winter. We’ve not had a winter like that, and when the snow melted in mid-April, the Toronto market just exploded.
LINDSAY: Yes, I’m still recovering from that last winter too. Okay, we’ll have to leave it there. Barry Cohen, broker and owner of RE/MAX Realtron Barry Cohen Homes. Appreciate your time. Thanks for joining us.
BARRY: Thank you, Lindsay.
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This BNN Bloomberg summary and transcript of the June 17, 2026 interview with Barry Cohen are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
