Canada joins Britain and Australia on a list of countries with “notably over-valued real estate markets,” according to the survey. Canada’s markets, the survey found, are more than 30% overpriced.
“Renting may provide more short-term value in the Canadian market,” the survey concluded.
The Economist found that Canada topped the charts in comparing countries’ housing prices to their respective rental rates. Countries like Australia, Sweden and Britain were also near the top of that list.
The survey found that property prices were on the rise around the world, rising at a median pace of 4.7% annually.
Of the countries surveyed, only China, Singapore, France, Greece and Italy were seeing a drop in housing prices.
Toronto has the highest housing prices in relation to its rental rates in a new list comparing 26 other housing markets across the world, according to survey by the Economist.