London Housing Market Outlook 2026

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Price Stability Emerging in London’s Buyers Market

London’s housing market continues to fluctuate, but the data indicate stabilization rather than a renewed decline. Sales remain lower than last year, yet average prices are holding close to prior levels, and benchmark values have shown modest month-over-month gains in several segments. Elevated inventory is shaping market dynamics more than weakening demand.

Is London in a Buyer’s Market?

London is currently operating in buyer-favourable conditions. The sales-to-new-listings ratio has declined sharply, and the months of inventory have risen to levels not seen in a decade. When supply expands faster than sales, negotiating leverage shifts toward buyers.

However, this environment reflects a balance returning after pandemic-driven tightness rather than distress. Sales activity remains within historical January norms, which suggests demand has slowed but not disappeared.

Are Home Prices Falling in London?

Home prices in London are not collapsing. Year-over-year comparisons show only minimal average price movement, and benchmark prices increased modestly month over month in January. That pattern indicates that, although annual comparisons remain weak, short-term pricing momentum has steadied.

Apartments remain the weakest segment, showing broader softening over the past 3 months. Townhouses and one-storey homes posted modest monthly gains, suggesting entry-level and downsizer demand remains active. Detached homes are adjusting gradually rather than sharply.

Why is London’s Housing Inventory High?

Inventory levels in London have historically been elevated, as new listings have accumulated while buyers remain cautious. Affordability pressures, trade-related economic uncertainty, and slower population growth have reduced urgency. As a result, listings are taking longer to absorb.

Higher supply is preventing near-term price growth. Sellers must price competitively, and buyers can compare options rather than act quickly.

Will Sales Rebound in London?

Sales are expected to strengthen gradually as economic conditions stabilize. Growth in sectors such as electric vehicle manufacturing and defence-related industries may support local employment and demand over the medium term.

Recovery is expected to be measured, as trade uncertainty and affordability constraints will likely prevent a rapid return to peak transaction levels. A stronger rebound is more likely in 2027 and 2028 once the economy visibly improves.

What is Happening with Housing Starts in London?

Total housing starts are projected to remain relatively stable in London this year. Ground-oriented construction is constrained by healthy resale inventory and weaker new-home demand. Still, row and townhomes are expected to gain traction as an affordable option for young families and those looking to downsize.

Apartment construction remains resilient, with many approved rental projects moving forward despite slower population growth. Government financing programs and municipal density initiatives continue to support purpose-built rental development.

What About London’s Rental Market?

The rental vacancy rate is expected to rise further in 2026, driven by strong rental completions and slower growth in immigration. As supply expands, rent growth is moderating. Landlords are prioritizing occupancy amid a more competitive environment, thereby limiting upward rent pressure.

What Defines London’s Market?

London is experiencing a supply-driven pause, while prices are broadly stable, inventory is elevated, and buyers have leverage. The next phase depends on inventory absorption and employment growth. For now, the market reflects a balance returning rather than renewed overheating or collapse.

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London Housing Market Highlights

• The average selling price of a home in London decreased by 8.6% year-over-year to $558,000 in January.
• The average selling price of a single-family home in London decreased by 8.8% year-over-year to $614,000 in January.
• The average selling price of a townhouse/multiplex in London decreased by 8.5% year-over-year to $448,300 in January.
• The average selling price of a condo in London decreased by 18.1% year-over-year to $322,300 in January.
• The average rent in London is now $1,916 for January.
• February 20, 2026: Today’s lowest mortgage rate in London is for a 5-year fixed.

Data from the London and St. Thomas Association of Realtors (LSTAR) indicates that the average price of resale residential homes sold across London in January was $558,000, and itdecreased of 8.6% compared to a year ago.

LSTAR also reported a sales-to-new-listings ratio (SNLR) of 32%, indicating Buyers market conditions in London for January.

Composite Home Prices

Single-family Home Prices

Townhouse and Multiplex Prices

Condo Prices

Transactions –  Number of Sales

New Listings

Real Estate Market

The sales-to-new-listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR below 40% indicates a buyer’s market, in which buyers hold the upper hand and greater negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market. 

Annual Changes to Composite Home Prices in London

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London Market Rents Snapshot

The average rent in London was $1,916 for the month of January.

The average rent for a 1-bedroom apartment in London was $1,650 for the month of January, which decreased by 6.5% year over year.

The average rent for a 2-bedroom apartment in London was $2,051 for the month of January, which decreased by 4.5% year over year.

Rental Price Changes by City

Rank	CITY	Total Average	1 Bedroom	2 Bedrooms	Year-over-Year Change
1	North Vancouver	$2,958	$2,469	$3,287	−2.2%
2	Vancouver	$2,650	$2,362	$3,279	−4.8%
3	Oakville	$2,502	$2,216	$2,576	−19.3%
4	Toronto	$2,504	$2,183	$2,801	−8.6%
5	North York	$2,528	$2,127	$2,688	−1.9%
6	Burnaby	$2,505	$2,144	$2,809	−6.7%
7	Coquitlam	$2,524	$2,107	$2,765	−3.9%
8	Mississauga	$2,446	$2,043	$2,454	−8.6%
9	Etobicoke	$2,382	$2,102	$2,562	−8.3%
10	Kanata	$2,412	$2,238	$2,502	−17.3%
11	Brampton	$2,361	$1,910	$2,208	−7.2%
12	Kingston	$2,315	$1,968	$2,502	22.0%
13	Scarborough	$2,318	$1,910	$2,417	−5.6%
14	Vaughan	$2,266	$2,082	$2,499	−6.7%
15	Greater Sudbury	$2,067	$1,918	$2,167	−2.4%
16	Langley	$2,344	$2,071	$2,465	−1.8%
17	Burlington	$2,376	$2,065	$2,443	−5.0%
18	Ajax	$2,248	$1,814	$2,229	−4.5%
19	Halifax	$2,270	$2,052	$2,500	0.10%
20	Victoria	$2,224	$1,942	$2,605	−5.1%
21	Guelph	$2,159	$1,979	$2,291	−4.0%
22	Kelowna	$2,015	$1,686	$2,124	−10.8%
23	Surrey	$2,124	$1,818	$2,249	−8.5%
24	Ottawa	$2,127	$1,945	$2,458	−2.8%
25	New Westminster	$2,120	$1,872	$2,611	−7.4%
26	Waterloo	$2,230	$2,028	$2,367	−2.7%
27	Oshawa	$2,121	$1,753	$2,052	−5.4%
28	Nanaimo	$2,055	$1,820	$2,328	8.20%
29	Barrie	$2,154	$1,904	$2,184	−1.2%
30	East York	$2,302	$1,963	$2,554	−4.3%
31	Hamilton	$2,069	$1,753	$2,086	0.40%
32	Brossard	$2,066	$1,794	$2,169	1.60%
33	Cambridge	$2,057	$1,797	$2,101	−6.4%
34	Kamloops	$1,992	$1,805	$2,161	5.60%
35	Airdrie	$1,954	$1,450	$1,739	−0.9%
36	Laval	$2,098	$1,710	$2,348	11.00%
37	Kitchener	$2,013	$1,819	$2,130	−4.5%
38	Brantford	$1,979	$1,802	$2,058	0.50%
39	Niagara Falls	$1,929	$1,684	$1,899	−9.4%
40	Montreal	$1,913	$1,710	$2,216	−1.3%
41	London	$1,916	$1,650	$2,051	−4.5%
42	Gatineau	$1,885	$1,655	$2,072	−4.7%
43	Calgary	$1,871	$1,535	$1,850	−3.9%
44	Peterborough	$1,973	$1,677	$1,991	−2.3%
45	St. Catharines	$1,827	$1,608	$1,945	−1.2%
46	Welland	$1,675	$1,506	$1,823	−0.4%
47	Windsor	$1,658	$1,523	$1,839	−0.1%
48	Sarnia	$1,728	$1,508	$1,833	−3.9%
49	Winnipeg	$1,664	$1,409	$1,796	3.10%
50	Côte Saint-Luc	$1,535	$1,402	$1,787	−21.4%
51	Edmonton	$1,591	$1,279	$1,619	−2.6%
52	Saskatoon	$1,566	$1,350	$1,554	4.50%
53	Lethbridge	$1,528	$1,369	$1,570	0.70%
54	Quebec City	$1,485	$1,364	$1,646	−12.3%
55	Red Deer	$1,529	$1,219	$1,489	5.90%
56	Regina	$1,466	$1,255	$1,538	4.80%
57	Fort McMurray	$1,370	$1,167	$1,419	−1.3%
58	Medicine Hat	$1,372	$1,217	$1,395	0.10%
59	Lloydminster	$1,235	$1,025	$1,340	7.70%
60	St. John's	$1,238	$1,086	$1,250	−6.4%

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 in London?

Each $100,000 in mortgage balance costs an average of $509.35 per month on nesto’s lowest fixed 5-year rate at and $495.28 per month on nesto’s lowest adjustable 5-year rate at .

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

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Frequently Asked Questions (FAQ) About the London Housing Market Outlook for 2026

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