Canadian Housing Market Outlook 2026

National Housing Market Inches Forward, but the Recovery Looks Nothing Like the Headlines

According to the Canadian Real Estate Association (CREA) for April 2026, national home sales edged up 0.7% on a month-over-month basis, while actual (not seasonally adjusted) transactions came in at 42,927, down 4% from April 2025. The national average sale price landed at $695,412, up 2.2% from a year ago. On the surface, the numbers suggest a market gently finding its footing. Underneath, what’s actually happening is four distinct regional markets moving in different directions at once.

• The national MLS HPI composite benchmark dipped 0.1% from March and sat 4.2% below April 2025 levels. But the direction varies sharply by region. Calgary and Edmonton broke their year-long downtrends with month-over-month gains, Toronto’s benchmark was flat for the first time in nearly a year, and previously appreciating markets like Saskatchewan, Montréal, New Brunswick, and Nova Scotia all softened in April. The “Canadian housing market” as a single entity doesn’t really exist right now. What you experience depends entirely on where you live and what you’re buying.
• New listings jumped 4.1% from March, marking the traditional start of the spring selling season. But with supply outpacing sales within the month, the national SNLR eased to 45.6% from 47.1% in March, sitting well below the long-term average of 54.8%. There were 187,647 properties listed nationally at month’s end, up 2.2% from a year earlier but still 6.1% below the long-term average. Months of inventory sat at 5.2, just above the long-run norm. CREA senior economist Shaun Cathcart noted that “the small increase reflected a slow start to the month with a stronger handoff into May, alongside falling days on market and stabilizing prices.”
• The deeper pattern that few housing analysts are connecting: Canada’s population fell 0.2% year-over-year as of January 1, the first annual decline ever recorded, driven by a sharp pullback in non-permanent residents who had been absorbing a disproportionate share of rental and entry-level housing demand. RBC Economics expects monthly population growth to turn outright negative in the coming months. At the same time, the Bank of Canada has signalled that future policy rate changes “can be expected to be small,” with five of six Big Bank economists projecting the overnight rate will hold at 2.25% through the rest of 2026. The combination of a shrinking population, stable rates, and gradually normalizing inventory creates a market that is stabilizing from the bottom rather than rebounding.

The recovery will be slow, uneven, and local. For buyers, that means the urgency isn’t coming from the market; it’s coming from your own timeline. Getting a mortgage pre-approval now puts you in a position to act decisively when market conditions align. Speak with nesto mortgage experts to build a strategy around where things stand today.

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Canadian Housing Market Highlights

• The average selling price of a home in Canada decreased by 4.1% year-over-year to $666,400 in April.
• The average selling price of a single-family home in Canada decreased by 3.6% year-over-year to $742,400 in April.
• The average selling price of a townhouse/multiplex in Canada decreased by 5.3% year-over-year to $603,900 in April.
• The average selling price of a condo in Canada decreased by 6.3% year-over-year to $466,900 in April.
• The average rent in Canada decreased by 4.7% year-over-year to $2,027 for April. 
• May 23, 2026: Today’s lowest mortgage rate in Canada is 4.14% for a 5-year fixed.

Data from the Canadian Real Estate Association (CREA) indicates that the benchmark price of resale residential homes sold across Canada in April was $666,400, and it decreased by 4.1% compared to a year ago.

CREA also reported a sales-to-new-listings ratio (SNLR) of 46%, indicating Balanced market conditions nationally for April.

Composite Home Prices

Single-family Home Prices

Townhouse and Multiplex Prices

Condo Prices

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Nineteen Months and Counting as Canadian Rents Keep Falling

According to the National Rental Report for May 2026, average asking rents in Canada dropped to $2,027 per month, down 4.7% from a year ago. That makes it 19 consecutive months of year-over-year declines, though the pace has eased slightly from March’s 5.3% slide. On a month-over-month basis, rents rose 0.9%, reflecting the usual spring uptick as lease activity picks up heading into summer.

• Purpose-built apartments came in at $2,027, down 3.7% year-over-year, while condo rentals fell 5.6% to $2,087. Despite nearly two years of correction, asking rents remain 21.9% above the pandemic-era low recorded in April 2021. The gap between purpose-built and condo rents has narrowed as investor-held units continue to flood the market.
• The supply side is reshaping the landscape. According to BMO Economics, more than 180,000 rental units are currently under construction across Canada, with rental projects now outnumbering combined ownership of condo and housing units for the first time. At the same time, Canada’s population fell 0.2% year-over-year as of January 1, the first annual decline on record, after peaking above 3% growth in mid-2024. BMO flagged that these supply-demand dynamics are “toughest in BC and Southern Ontario, where rental and condo construction has been strongest, and non-permanent resident caps are biting hardest.”
• Among the six largest cities, Calgary posted the steepest apartment rent decline at 5%, followed by Toronto (4.7%), Vancouver (4.3%), Ottawa (4.1%), Edmonton (2.2%), and Montréal (1.6%). BC (down 4.8%), Alberta (down 4.6%), and Ontario (down 4.4%) led provincial declines, while Nova Scotia, Saskatchewan, and Manitoba continued to post modest growth.

Falling rents reflect broader shifts in the real estate market that could benefit first-time buyers. Improving resale affordability may also draw some renters toward homeownership, further increasing rental demand. If that transition is on your radar, speak with nesto mortgage experts to build a strategy that fits your budget and timeline.

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Canada Market Rents Snapshot

The average rent in Canada was $2,027 for the month of April, which decreased by 4.7% year over year.

The average rent for a 1-bedroom apartment in Canada was $1,778 for the month of April, which decreased by 4.3% year over year.

The average rent for a 2-bedroom apartment in Canada was $2,159 for the month of April, which decreased by 3.2% year over year.

Rental Price Changes by City

Rank	City	Total Average	1 Bedroom	2 Bedrooms	Year-over-Year Change
1	North Vancouver	$3,001	$2,523	$3,358	−5.7%
2	Vancouver	$2,679	$2,358	$3,317	−2.8%
3	Toronto	$2,504	$2,208	$2,863	−2.1%
4	North York	$2,488	$2,098	$2,654	−1.4%
5	Burnaby	$2,484	$2,119	$2,774	−6.7%
6	Oakville	$2,464	$2,201	$2,582	−13.9%
7	Etobicoke	$2,431	$2,111	$2,639	−4.1%
8	Kanata	$2,424	$2,248	$2,569	−7.9%
9	Coquitlam	$2,416	$2,125	$2,677	−9.7%
10	Burlington	$2,376	$2,124	$2,442	−5.2%
11	Mississauga	$2,355	$2,062	$2,440	−5.4%
12	Vaughan	$2,314	$2,078	$2,586	−1.3%
13	Langley	$2,289	$1,946	$2,456	−1.7%
14	Victoria	$2,271	$1,968	$2,607	−2.2%
15	Halifax	$2,256	$2,030	$2,534	−2.4%
16	Scarborough	$2,250	$1,895	$2,373	−6.3%
17	Brampton	$2,228	$1,939	$2,283	0.90%
18	Kingston	$2,228	$1,887	$2,333	12.40%
19	Waterloo	$2,210	$2,029	$2,358	−3.2%
20	Ajax	$2,192	$1,983	$2,196	−0.1%
21	East York	$2,186	$1,863	$2,498	−3.0%
22	Guelph	$2,171	$1,917	$2,231	−6.4%
23	Ottawa	$2,151	$1,945	$2,472	−4.0%
24	New Westminster	$2,145	$1,942	$2,684	−1.1%
25	Barrie	$2,128	$1,912	$2,229	−1.3%
26	Surrey	$2,108	$1,801	$2,183	−9.8%
27	Laval	$2,073	$1,708	$2,360	11.20%
28	Kamloops	$2,064	$1,837	$2,103	−3.3%
29	Kelowna	$2,051	$1,739	$2,219	−4.0%
30	Greater Sudbury	$2,026	$1,795	$2,186	−10.8%
31	Cambridge	$2,019	$1,812	$2,109	−4.5%
32	Nanaimo	$2,015	$1,820	$2,213	1.20%
33	Peterborough	$2,008	$1,729	$1,984	−1.3%
34	Airdrie	$1,999	$1,501	$1,771	0.30%
35	Hamilton	$1,981	$1,717	$2,317	6.20%
36	Montreal	$1,971	$1,793	$2,341	3.00%
37	Oshawa	$1,964	$1,713	$2,016	−5.6%
38	Brantford	$1,929	$1,752	$2,103	4.90%
39	London	$1,925	$1,680	$2,055	−4.6%
40	Brossard	$1,913	$1,726	$2,030	−12.5%
41	Kitchener	$1,889	$1,714	$2,061	−6.6%
42	Calgary	$1,869	$1,522	$1,842	−3.7%
43	Niagara Falls	$1,845	$1,688	$1,999	−3.4%
44	St. Catharines	$1,800	$1,621	$1,895	−3.9%
45	Gatineau	$1,780	$1,592	$1,895	−8.0%
46	Welland	$1,769	$1,576	$1,927	5.10%
47	Côte Saint-Luc	$1,751	$1,443	$2,006	−13.2%
48	Sarnia	$1,693	$1,493	$1,789	−4.5%
49	Winnipeg	$1,662	$1,446	$1,793	0.80%
50	Windsor	$1,615	$1,482	$1,790	−9.1%
51	Edmonton	$1,603	$1,279	$1,637	−1.0%
52	Red Deer	$1,585	$1,340	$1,523	−0.7%
53	Saskatoon	$1,534	$1,323	$1,562	−0.8%
54	Lethbridge	$1,500	$1,332	$1,519	−1.1%
55	Quebec City	$1,481	$1,323	$1,683	−3.3%
56	Regina	$1,452	$1,301	$1,533	1.60%
57	Medicine Hat	$1,403	$1,240	$1,394	0.30%
58	Fort McMurray	$1,357	$1,164	$1,410	−1.0%
59	Lloydminster	$1,264	$1,069	$1,333	6.10%
60	St. John's	$1,125	$1,073	$1,249	5.60%

Average Rent by City
Source: Rentals.ca Network Data & Urbanation Inc.

Rental Price Changes by Province

Rental Price Growth by Housing Type

How Does Renting Compare with Homeownership Across Canada?

Each $100,000 in mortgage balance costs an average of $533.64 per month on nesto’s lowest fixed 5-year rate at 4.14% and $495.28 per month on nesto’s lowest adjustable 5-year rate at 3.40%.

For each $100,000 in mortgage balance, a 0.25% change in Canada’s policy rate impacts the monthly payment by $13.23. Rates used for calculation are those offered on insured purchases with less than a 20% downpayment on a 25-year amortization. Canada’s policy rate is 2.25%, and nesto’s prime rate is 4.45%.

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Frequently Asked Questions (FAQ) About the Canadian Housing Market in 2026

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Why Choose nesto

At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and the quality of their advice. nesto aims to transform the mortgage industry by providing honest advice and competitive rates through a 100% digital, transparent, and seamless process.

nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.

Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.

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