New Brunswick's real estate market attracted more investors during the pandemic, maintaining affordability, especially in rural areas.
Rural Boom
A comprehensive study by Statistics Canada highlights the dynamic landscape of the residential real estate market across Canada, with particular emphasis on investor activity in New Brunswick, Nova Scotia, and British Columbia between 2018 and 2020.
Released on December 3, the report sheds light on the trends and profiles of real estate investors before and during the early stages of the COVID-19 pandemic. While Nova Scotia recorded the highest rate of investor buyers, New Brunswick showed unique market characteristics that distinguish its real estate dynamics.
Investor Buying Trends in New Brunswick
In New Brunswick, investors accounted for approximately 20% of property buyers over the examined period. Notably, the share of investor buyers saw a slight increase from 2019 to 2020, bucking the trend seen in Nova Scotia and British Columbia where investor activity decreased during the first year of the pandemic. Here’s a more focused look at the types of real estate investors in New Brunswick as mentioned in the report:
In-province Investor Buyer: These are individuals who reside within New Brunswick and own multiple residential properties. They are identified as investors if the newly purchased property is classified as an investment property following the year of purchase.
Out-of-province Investor Buyer: This category includes those who live outside New Brunswick but have invested in property within the province.
Non-resident Investor Buyer: Investors who are not Canadian residents but have purchased property in New Brunswick fall into this category. The report also indicates that there's a notable presence of smaller-scale investors who typically own fewer than three properties.
Affordability a Key Factor
The data revealed that in New Brunswick, as well as in Nova Scotia, the median price paid by most investor types for houses was significantly lower than that paid by non-investor buyers. This contrast starkly with the scenario in British Columbia, where investors typically purchased more expensive properties than their non-investor counterparts.
Rural vs. Urban Investor Dynamics
The study also highlighted a distinct difference in investor activity between urban and rural settings. In rural areas of New Brunswick, a higher proportion of buyers were investors compared to those in the province’s urban centres like Saint John and Moncton. This trend reflects a broader national pattern where rural areas tend to attract more investors, possibly due to the lower property prices and potential for rental or seasonal use.
