By Dr. Maurice Yeates, Paul Du and Dr. Tony Hernandez

This is an analysis of recent trends in residential values in Canada’s five largest metropolises – the Toronto, Montréal, Vancouver, Ottawa-Gatineau, and Calgary CMAs -- that seeks to cast light on two questions: (i) why is the average level of values high and buoyant in some metropolitan areas and lower and less eupeptic in others; and, (ii) why are values of residential properties high in some parts of metropolitan areas, but lower in others? The first question is important because, while urban areas in Canada are under the jurisdiction of the provinces, ‘rates and regulatory’ policies that relate to the national sphere are under federal jurisdiction and have a major impact on urban areas, particularly metropolitan areas which are the drivers of the national economy. The second is of practical and theoretical significance because it has hitherto not been addressed in the context of a similarly structured mixed hedonic house price model for a number of large metropolitan areas.