The real estate market in St. John’s, Newfoundland has dramatically changed over the past few years. However, there are plenty of reasons why it is still one of the most preferred places to live for anyone wishing to move to this province. If you are about to embark on a house hunting journey, here you can learn more about what this real estate market has in store and if it is the right fit for your needs.
Average House Prices in St John’s
Since the onset of the pandemic, the year 2020 marked a significant shift in the real estate market in St. John’s, Newfoundland and Labrador. The residents were grappling with the new realities of everyday life and more people spending time at home created a renewed focus on finding a home that would satisfy their basic needs.
A huge portion of the population in St. John’s moved to rural areas, but there were also those that moved to urban centers like St. John’s to have access to basic amenities, including hospitals and other health care facilities. The huge number of people moving to St. John’s, the rising cost of construction materials, and the low interest rates in the city created the perfect storm that dramatically changed the real estate market landscape.
All of these factors combined to increase the sales rate in St. John’s real estate market by 25 to 30 percent between the latter part of 2020 and the end of 2021. The average house price in St. John’s grew by 7.5 percent in the second quarter of 2021 via a year-on-year comparison. The aggregate housing price in St. John’s is $299,500.
The actual increase in average house prices differ based on the type of housing too. For example, the price for single family homes within that same period also increased by 8.8 percent. The new average for single family homes is $309,500. Condominiums also saw an increase in pricing at 2.5 percent and are now priced at an average of $282,000.
The increased demand for houses due to the increased sales has resulted in a housing shortage. As the law of supply and demand dictates, the national average for house pricing in Canada has gone up too.
Population Growth Rate in St. John’s
St. John’s, one of the top six cities in Canada, is reported to have seen a population growth in the past 20 years, according to the Atlantic Provinces Economic Council. The other cities that have seen a population growth are Halifax, Fredericton, Moncton, and Charlottetown.
According to data from Statistics Canada, the population of St. John’s (as of the 2016 census) is 205,955 (versus 519,716 for Newfoundland and Labrador). This means that there has been a significant increase in population in the city since 2011 (estimated at 196,954). The average population growth rate over the 5-year period is 4.6 percent (compared to 1.0 percent for the province).
Rental Market Landscape in St. John’s
With a hot housing market, it is expected that the rental market in St. John’s is also in great demand. In fact, CBC Canada has reported that there is an ongoing rental frenzy in the city as of January 2022. This frenzy is reportedly triggered by the shortage of supply in the rental housing market and the sheer volume of apartment hunters moving to the region.
The average rent for a 1-bedroom apartment in St. John’s is $835, and the rental average for a studio apartment is $750. Prices for a 2-bedroom apartment in St. John’s go up to $940.
Benefits of Living in St. John’s
St. John’s is the provincial capital of Newfoundland and Labrador. It is also one of the oldest continually inhabited cities in North America and the easternmost city in Canada. Here are some of the advantages that residents get to enjoy while living in St. John’s.
Affordable Real Estate
St. John’s holds the recognition as one of the cheapest places to live in Canada. In fact, it is ranked as the fourth least expensive city in the country. The average house prices are approximately $300,000 for single family homes while the rent is no more than $800.
The ability to enjoy a work-life balance is one of the perks enjoyed by the residents of St. Johns in Newfoundland and Labrador. It offers a vibrant mix of hectic downtown life and the quiet outdoors. In less than an hour’s travel, you can explore world-class hiking paths and scenic outdoor destinations. Meanwhile, the downtown is filled with heritage sites, historic buildings, antique shops, and other tourist destinations.
Entertainment and Cultural Hub
St. John’s is a great destination for the creative and those who thrive in a cultural and entertainment scene. The arts scene, in particular, in St. John’s is lively and is a hotbed for creativity and artistry across all disciplines. This is why it is a favorite destination for businesses in various industries.
The strategic location of the city makes it a suitable commerce and trade hub in the region. It is home to government offices, businesses, and multiple industries. For this reason, the residents of St. John’s have access to employment and livelihood opportunities. The residents are also able to live a comfortable life without taking on multiple jobs.
Canada, in general, is well-reputed for its superior quality educational system. St. John’s is no exception. This city is home to world-class educational facilities and institutions. And yet, it is also known for its affordable educational system, making world-class learning accessible to its residents.
Low Crime Rate
St. John’s is one of the safest cities in Canada. While other cities like Winnipeg are struggling to keep their crime rates low, the crime rate in this city has dropped for three consecutive years (by 9%). It is, therefore, an ideal place to live for families.
Efficient Transportation System
The public transport system in St. John’s is one of the best in Canada. It is modern and efficient. Therefore, it is easy for residents to get from one part of the city to another within minutes. There is also little to no traffic in the city.
The lack of language barrier makes it a suitable option for those who are immigrants. As such, there is a friendly atmosphere within the community at St. John’s wherein people of all diversities and ethnic backgrounds feel welcome and safe.
Posted by Teri-Lynn Jones on