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Compare equity and real estate markets for the past 25 years

Published on: August 12th, 2019

The Canadian residential real estate market has been one of the best performing in the world, but as indicated in this table, it still underperformed equities in the period 1993 to 2017. The lesson? Don’t over rely on rising house prices to fund your retirement plan.

S&P/TSX Composite Total Return Index vs Select Canadian Real Estate Markets
Based on an initial investment of $300,000 with no leverage over 25 years (1993-2017)


Market End Value Rate of Return
S&P/TSX Composite Total Return Index $2,608,610 9.0 %
Toronto $1,149,673 5.5 %
Vancouver $1,163,495 5.5 %
Calgary $1,021,800 5.0 %
National Average $ 949,489 4.7 %
Montreal $ 937,722 4.7 %
Halifax $ 809,769 4.1 %


Sources: All data as of Jan. 31, 2018. Housing price data compiled by RBC Global Asset Management Inc. from Canadian Real Estate Association (CREA). Source of the S&P/TSX Composite is RBC Global Asset Management Inc. All returns are annualized, and where applicable, compounded assuming reinvestment of all distributions. Note that data for the Montreal market is not seasonally adjusted. For illustrative purposes only. An investment cannot be made directly in an index and this table does not reflect cost, fees or taxes which could lower returns.

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