London Housing Market Outlook 2026
London Inventory Builds a Runway Into Fall
According to the London and St. Thomas Association of Realtors (LSTAR), in July 2026, 686 homes changed hands across the region, a decline of 4.9% from July 2025, yet still left activity on par with the past four Julys. Inventory is the story here, sitting at historically high levels heading into the autumn.
- The composite benchmark price was $557,000, down 0.7% from June and 1.8% from April. Single-family homes benchmarked at $606,800 and townhouses at $428,400, both lower this month, while apartments bucked the trend by rising 1.8% to $330,000.
- Active listings numbered 3,367 across the LSTAR region, supporting 4.9 months of inventory. The sales-to-new-listings ratio improved to 44.5% from 41.6% in June.
- The average sale price of $603,006 held essentially level with June at $606,614. Prices vary widely by area, from $456,416 in London East to $844,452 in Middlesex Centre.
Apartments posting the only monthly benchmark gain are notable in a region where that segment has lagged. With the Bank of Canada holding its policy rate at 2.25% since October, the combination of stable borrowing costs and deep inventory is pointing to a busier fall rather than a continued summer lull.
Deep inventory and steady rates make this a reasonable moment to get organized. Compare current mortgage rates in London and connect with our nesto mortgage experts so you are ready ahead of the fall market.
Best Mortgage Rates
London Housing Market Highlights
- The average selling price of a home in London decreased by 3.5% year-over-year to $561,100 in July.
- The average selling price of a single-family home in London decreased by 3.9% year-over-year to $613,800 in July.
- The average selling price of a townhouse/multiplex in London decreased by 9.3% year-over-year to $432,900 in July.
- The average selling price of a condo in London decreased by 8.7% year-over-year to $324,100 in July.
- The average rent in London decreased by 4.3% year-over-year to $1,924 for July.
- September 16, 2026: Today’s lowest mortgage rate in London is 4.39% 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 July was $561,100, and it decreased by 3.5% compared to a year ago.
LSTAR also reported a sales-to-new-listings ratio (SNLR) of 45%, indicating Balanced market conditions in London for July.
Average Home Prices in London by Property Type
Composite Home Prices
The average selling price of a home in London was $561,100 for the month of July, that’s decreased by 1.6% month-over-month. On a year-over-year basis, London home prices have decreased 3.5% year-over-year.
Single-family Home Prices
The average selling price of a single-family home in London was $613,800 for the month of July, that’s decreased by 1.6% month-over-month. On a year-over-year basis, single-family home prices in London have decreased by 3.9% year-over-year.
Townhouse and Multiplex Prices
The average selling price of a townhouse in London was $432,900 for the month of July, that’s decreased by 1.4% month-over-month. On a year-over-year basis, the price of a townhouse in London has decreased by 9.3% year-over-year.
Condo Prices
The average selling price of a condo in London was $324,100 for the month of July, that’s increased by 5.2% month-over-month. On a year-over-year basis, the price of a condo in London has decreased 8.7% year-over-year.
London Home Sales, New Listings and Market Conditions
Transactions and Number of Sales
The number of sales in London was 686 during July, that’s decreased by 8.9% month-over-month. On a year-over-year basis, sales in London have decreased by 5.4% year-over-year.
New Listings
The number of new listings in London was 1,542 during July, that’s decreased by 0.148 month-over-month. On a year-over-year basis, new listings in London have decreased by 0.051 year-over-year.
Sales-to-New-Listings Ratio (SNLR)
The sales-to-new-listings ratio (SNLR) in London was 45% during July, indicating a Balanced. On a monthly basis, that’s increased by 0.069 month-over-month. London’s yearly sales-to-new-listings ratio has decreased by 0.003 year-over-year.
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, where 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
Red hot rates impacting your housing market experience?
With nesto, you can get a low rate with a 150-day hold.
London Market Rents Snapshot
The average rent in London was $1,924 for the month of July, which decreased by 4.3% year-over-year.
The average rent for a 1-bedroom apartment in London was $1,670 for the month of July, which decreased by 4.2% year-over-year.
The average rent for a 2-bedroom apartment in London was $2,058 for the month of July, which decreased by 4% year-over-year.
Average Rent by City in Canada
| Rank | City | Total Avg | 1 Bed | 2 Bed |
|---|---|---|---|---|
| 1 | North Vancouver | $3,036 | $2,501 | $3,434 |
| 2 | Vancouver | $2,729 | $2,350 | $3,248 |
| 3 | Oakville | $2,695 | $2,316 | $3,021 |
| 4 | Toronto | $2,571 | $2,221 | $2,939 |
| 5 | Kanata | $2,524 | $2,251 | $2,754 |
| 6 | Burnaby | $2,520 | $2,119 | $2,724 |
| 7 | North York | $2,519 | $2,085 | $2,690 |
| 8 | Coquitlam | $2,510 | $2,087 | $2,709 |
| 9 | Etobicoke | $2,441 | $2,081 | $2,653 |
| 10 | Vaughan | $2,422 | $2,110 | $2,516 |
| 11 | Burlington | $2,386 | $2,068 | $2,425 |
| 12 | Halifax | $2,365 | $1,999 | $2,591 |
| 13 | Mississauga | $2,346 | $2,042 | $2,443 |
| 14 | Barrie | $2,332 | $2,103 | $2,472 |
| 15 | Langley | $2,266 | $1,911 | $2,480 |
| 16 | Brampton | $2,259 | $1,971 | $2,351 |
| 17 | Victoria | $2,255 | $1,994 | $2,649 |
| 18 | Guelph | $2,224 | $1,927 | $2,276 |
| 19 | New Westminster | $2,203 | $1,901 | $2,655 |
| 20 | Kingston | $2,200 | $1,933 | $2,353 |
| 21 | Ottawa | $2,200 | $1,958 | $2,470 |
| 22 | Scarborough | $2,187 | $1,835 | $2,319 |
| 23 | Surrey | $2,185 | $1,796 | $2,250 |
| 24 | Ajax | $2,182 | $1,890 | $2,241 |
| 25 | Waterloo | $2,169 | $1,922 | $2,337 |
| 26 | Laval | $2,130 | $1,726 | $2,352 |
| 27 | Nanaimo | $2,078 | $1,844 | $2,251 |
| 28 | Kelowna | $2,073 | $1,823 | $2,248 |
| 29 | East York | $2,056 | $1,792 | $2,379 |
| 30 | Brossard | $2,044 | $1,767 | $2,139 |
| 31 | Cambridge | $2,027 | $1,834 | $2,174 |
| 32 | Oshawa | $2,023 | $1,740 | $2,019 |
| 33 | Niagara Falls | $1,978 | $1,659 | $1,958 |
| 34 | Airdrie | $1,966 | $1,429 | $1,774 |
| 35 | Greater Sudbury | $1,959 | $1,720 | $2,101 |
| 36 | Kamloops | $1,957 | $1,750 | $2,026 |
| 37 | Montreal | $1,957 | $1,742 | $2,259 |
| 38 | Kitchener | $1,938 | $1,691 | $2,084 |
| 39 | Hamilton | $1,921 | $1,653 | $2,135 |
| 40 | London | $1,913 | $1,651 | $2,030 |
| 41 | Brantford | $1,911 | $1,787 | $2,025 |
| 42 | Peterborough | $1,892 | $1,680 | $1,918 |
| 43 | Calgary | $1,885 | $1,508 | $1,845 |
| 44 | St. Catharines | $1,810 | $1,530 | $1,921 |
| 45 | Gatineau | $1,776 | $1,607 | $1,857 |
| 46 | Welland | $1,754 | $1,505 | $1,978 |
| 47 | Côte Saint-Luc | $1,710 | $1,405 | $1,966 |
| 48 | Windsor | $1,670 | $1,475 | $1,906 |
| 49 | Winnipeg | $1,646 | $1,426 | $1,754 |
| 50 | Edmonton | $1,631 | $1,275 | $1,646 |
| 51 | Sarnia | $1,607 | $1,438 | $1,674 |
| 52 | Quebec City | $1,586 | $1,299 | $1,677 |
| 53 | Red Deer | $1,573 | $1,345 | $1,515 |
| 54 | Lethbridge | $1,545 | $1,334 | $1,572 |
| 55 | Saskatoon | $1,517 | $1,295 | $1,531 |
| 56 | Regina | $1,468 | $1,291 | $1,536 |
| 57 | Fort McMurray | $1,378 | $1,163 | $1,382 |
| 58 | Medicine Hat | $1,371 | $1,228 | $1,381 |
| 59 | Lloydminster | $1,330 | $1,056 | $1,412 |
| 60 | St. John's | $1,293 | $1,136 | $1,453 |
Source: Rentals.ca Network Data & Urbanation Inc.
Average Rent by Province in Canada
Rental Price Growth by Housing Type
How Does Renting Compare With Homeownership in London?
Each $100,000 in mortgage balance costs an average of $539.11 per month on nesto’s lowest fixed 5-year rate at 4.39% and $497.95 per month on nesto’s lowest adjustable 5-year rate at 3.45%.
For each $100,000 in mortgage balance, a 0.25% change in Canada’s policy rate impacts the monthly payment by $13.27. The interest rates used for calculation are those offered on insured purchases with less than a 20% down payment on a 25-year amortization. Canada’s policy rate is 2.25%, and nesto’s prime rate is 4.45%.
We're curious…
Frequently Asked Questions (FAQ) About the London Housing Market in 2026
Are London Housing Market Conditions Favouring Buyers or Sellers in 2026?
London housing market conditions favour buyers in 2026, and more clearly than in most Ontario markets. Active listings numbered 3,367 across the LSTAR region in July, supporting 4.9 months of inventory, which is deep by this market’s standards. The sales-to-new-listings ratio improved to 44.5% from 41.6% in June, moving the market toward balance from the buyer-favouring side rather than away from it. Buyers here have both choice and time.
Are London Home Prices Going Up or Down in 2026?
London home prices are drifting down in 2026 rather than falling sharply. The composite benchmark was $557,000 in July, down 0.7% from June and 1.8% from April, while the average sale price of $603,006 held essentially level with June at $606,614. Prices vary widely by area, from $456,416 in London East to $844,452 in Middlesex Centre, so the regional average tells you less here than in more uniform markets.
Why Are London Apartment Prices Rising When Other Segments Fall?
London apartment prices are rising because the segment had already corrected further than the others. Apartments benchmarked at $330,000 in July, up 1.8% on the month, the only property type to post a monthly gain, while single-family homes at $606,800 and townhouses at $428,400 both moved lower. A segment that has lagged for several years tends to find a floor first once entry-level buyers return, which is what the July reading suggests is beginning.
Which London Neighbourhoods Are Most Affordable in 2026?
London East is the most affordable part of the London region in 2026, with an average price of $456,416, while Middlesex Centre is the most expensive at $844,452. That spread of nearly $390,000 within one board area is among the widest in southwestern Ontario. Buyers working to a fixed budget will find that choosing an area matters more here than choosing a property type, given how much the local averages diverge.
Is London Housing Affordability Improving in 2026?
London housing affordability is improving in 2026, helped by prices that have eased since April and borrowing costs that have not moved. The composite benchmark is down 1.8% from April, and the Bank of Canada has held its policy rate at 2.25% since October, so the qualifying amount a given income supports has stopped shrinking. The mortgage stress test still requires borrowers to qualify at a rate above the one they will actually pay, which remains the binding constraint for most first-time buyers.
What Is Limiting London Housing Demand in 2026?
Population is the main factor limiting housing demand in London in 2026. Ontario’s population growth turned negative in the second quarter, running 0.9% below year-earlier levels after reaching 3.6% two years ago, and London has depended heavily on inflows from the Greater Toronto Area and from international students. Qualification is the second constraint, since the mortgage stress test caps buying power even in a market where prices have been easing for several months.
Is It Cheaper to Rent or Buy in London in 2026?
Renting is still cheaper month-to-month than buying in London in 2026, though London has one of the narrower gaps in Ontario. Local asking rents sit below the provincial average, while the composite benchmark of $557,000 is well under Toronto or Hamilton levels, so ownership is within closer reach here than in most of the province. Which option costs less over time depends on how long it takes to save the down payment, how long you plan to stay, and the mortgage rate you qualify for.
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.
Let’s get started!
About the contributors
