Canadian Housing Market Outlook 2026
Canadian Housing Markets Converge on Balance From Both Directions
According to the Canadian Real Estate Association (CREA), in July 2026, 43,578 homes changed hands through Canadian MLS Systems, down 5.3% from July 2025. Seasonally adjusted activity rose 0.5% from June, a fourth consecutive monthly gain, though at 38,124 transactions, it remained 10.5% below the 10-year average for the month.
- The national composite benchmark price was $661,800, down 3.3% from July 2025. Annual declines have narrowed every month since January, and this was the smallest since October 2025. Single-family homes benchmarked at $737,000, townhouses at $596,000 and apartments at $461,500. On a seasonally adjusted basis, the composite index edged up 0.1% from June, its first monthly increase since November 2024.
- New listings fell 1.6% from June, a third straight monthly decline. Properties listed for sale numbered 205,388 at the end of July, up just 0.6% from a year earlier and only 1.5% above the long-term average for the month.
- Months of inventory eased to 4.7, the lowest reading of 2026 and slightly below the long-run average of five months. The sales-to-new-listings ratio tightened to 51.3%, converging on its long-term average of 54.7% and sitting comfortably inside the range consistent with balance.
Average prices tell a sharply regional story. The national average of $674,819 was up 0.2% over the year, but that near-flat national figure masks declines of 2.9% in Ontario and 1.3% in British Columbia against gains of 5.6% in Prince Edward Island, 5.5% in Saskatchewan and 5.2% in Quebec. CREA’s own reading is that markets are converging on balance from opposite directions: sellers’ markets across the Prairies, Quebec and the East Coast have cooled for a year, while the Lower Mainland and Ontario’s Greater Golden Horseshoe have moved back up out of buyer-favouring conditions. Saskatchewan, New Brunswick and Newfoundland and Labrador remain borderline sellers’ markets. The clearest caution comes from the Bank of Canada, which warned in July that the unsold condominium overhang in Vancouver and Toronto could slow the recovery, and that higher-density housing remains the weakest segment in nearly every large market.
Balanced conditions have removed much of the urgency that shaped the past few years, making this a sensible moment to work out your own numbers rather than react to someone else’s. Compare current mortgage rates and contact our nesto mortgage experts to see what today’s market means for your budget.
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Canadian Housing Market Highlights
- The average selling price of a home in Canada decreased by 3.3% year-over-year to $665,600 in June.
- The average selling price of a single-family home in Canada decreased by 2.9% year-over-year to $744,100 in June.
- The average selling price of a townhouse/multiplex in Canada decreased by 4.5% year-over-year to $604,400 in June.
- The average selling price of a condo in Canada decreased by 5.5% year-over-year to $464,900 in June.
- The average rent in Canada decreased by 4% year-over-year to $2,037 for June.
- August 19, 2026: Today’s lowest mortgage rate in Canada is 4.24% 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 June was $665,600, and it decreased by 3.3% compared to a year ago.
CREA also reported a sales-to-new-listings ratio (SNLR) of 51%, indicating Balanced market conditions nationally for June.
Average Home Prices in Canada by Property Type
Composite Home Prices
The average selling price of a home in Canada was $665,600 for the month of June, that’s decreased by 0.2% month-over-month. On a year-over-year basis, Canadian home prices have decreased 3.3% year-over-year.
Single-family Home Prices
The average selling price of a single-family home in Canada was $744,100 for the month of June, that’s decreased by 0.3% month-over-month. On a year-over-year basis, single-family home prices in Canada have decreased by 2.9% year-over-year.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Canada was $604,400 for the month of June, that’s decreased by 0.1% month-over-month. On a year-over-year basis, the price of a townhouse in Canada has decreased by 4.5% year-over-year.
Condo Prices
The average selling price of a condo in Canada was $464,900 for the month of June, that’s decreased by 0.4% month-over-month. On a year-over-year basis, the price of a condo in Canada has decreased 5.5% year-over-year.
Canadian Home Sales, New Listings and Market Conditions
Transactions and Number of Sales
The number of sales in Canada was 38,124 during June, that’s increased by 0.3% month-over-month. On a year-over-year basis, sales in Canada have decreased by 5.1% year-over-year.
New Listings
The number of new listings in Canada was 74,316 during June, that’s decreased by 1.9% month-over-month. On a year-over-year basis, new listings in Canada have decreased by 3.2% year-over-year.
Sales-to-New-Listings Ratio (SNLR)
The sales-to-new-listings ratio (SNLR) in Canada was 51% during June, indicating a Balanced. On a monthly basis, that’s increased by 2.2% month-over-month. Canada’s yearly sales-to-new-listings ratio has decreased by 2% 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 in Composite Home Prices by Province
Annual Changes to the National Composite Home Prices
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Canadian Asking Rents Climb for a Fourth Straight Month
According to the National Rental Report for August 2026, the average asking rent for all property types in Canada reached $2,037 in July, a 4% decline from the previous year. That marks 22 straight months of annual decreases, but it is also the smallest of those declines since February, and rents rose 0.2% from June for a fourth consecutive monthly gain.
- Purpose-built rental apartments proved the most resilient property type, easing by 2.6% annually to an average of $2,041. Condominium rents fell 6.3% to $2,063, while houses, townhomes and other secondary-market units saw the steepest drop at 7.5%, averaging $2,007.
- Larger units held up best. Three-bedroom rents slipped just 2.1% to $2,515, and two-bedroom rents fell 2.7% to $2,159, against declines of 3.9% for one-bedrooms at $1,770 and 4.1% for studios at $1,549.
- Nova Scotia held its place as the most expensive province for apartment and condominium rents at $2,377, ahead of British Columbia at $2,357 for a third straight month. Ontario posted the largest monthly gain at 0.8%, while the steepest annual declines came in Alberta at 4.3%, British Columbia at 4.1%, and Ontario at 3.7%.
Toronto was the standout market, with apartment and condominium rents up 1.6% from June to $2,577 and down only 0.6% year-over-year, the best annual showing among the six largest markets. Three-bedroom rents in the city actually rose 3.9% to $3,655. That recovery has not reached the surrounding region, where Brampton, Mississauga, Oakville and Oshawa all recorded annual declines of more than 7%.
Vancouver remained the most expensive major market at $2,677, down 4.5% annually and 1.4% from June. Average rent per square foot across the six largest markets held at $2.54, unchanged from July 2025, while the typical available unit shrank 3% to 831 square feet. Urbanation characterizes the market as stabilizing but not yet recovering, since the summer gains reflect ordinary back-to-school seasonality against the backdrop of annual declines that remain the norm. Shelter inflation slowed to 1.3% in July, its weakest reading since May 2020.
Four months of rising asking rents change the math for anyone weighing renewal against homeownership. Compare current mortgage rates and speak with our nesto mortgage experts to see how a monthly payment would compare with what you are paying now.
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Canada Market Rents Snapshot
The average rent in Canada was $2,037 for the month of June, which decreased by 4% year-over-year.
The average rent for a 1-bedroom apartment in Canada was $1,770 for the month of June, which decreased by 4% year-over-year.
The average rent for a 2-bedroom apartment in Canada was $2,159 for the month of June, which decreased by 4% year-over-year.
Average Rent by City in Canada
| Rank | City | Total Average | 1 Bedroom | 2 Bedrooms |
|---|---|---|---|---|
| 1 | North Vancouver | $3,039 | $2,588 | $3,458 |
| 2 | Vancouver | $2,686 | $2,377 | $3,255 |
| 3 | Toronto | $2,580 | $2,234 | $2,947 |
| 4 | North York | $2,565 | $2,188 | $2,743 |
| 5 | Burnaby | $2,543 | $2,159 | $2,802 |
| 6 | Coquitlam | $2,526 | $2,134 | $2,753 |
| 7 | Oakville | $2,517 | $2,198 | $2,819 |
| 8 | Kanata | $2,514 | $2,230 | $2,751 |
| 9 | Etobicoke | $2,439 | $2,094 | $2,624 |
| 10 | Halifax | $2,372 | $2,071 | $2,616 |
| 11 | Burlington | $2,370 | $2,075 | $2,448 |
| 12 | Mississauga | $2,357 | $2,052 | $2,445 |
| 13 | Vaughan | $2,319 | $2,048 | $2,580 |
| 14 | Victoria | $2,307 | $2,016 | $2,682 |
| 15 | Brampton | $2,285 | $2,001 | $2,379 |
| 16 | Langley | $2,239 | $1,899 | $2,457 |
| 17 | Ajax | $2,234 | $1,878 | $2,218 |
| 18 | Guelph | $2,217 | $1,905 | $2,280 |
| 19 | Scarborough | $2,213 | $1,872 | $2,288 |
| 20 | New Westminster | $2,190 | $1,880 | $2,656 |
| 21 | Surrey | $2,167 | $1,794 | $2,239 |
| 22 | Ottawa | $2,164 | $1,960 | $2,449 |
| 23 | Barrie | $2,155 | $1,863 | $2,108 |
| 24 | Waterloo | $2,118 | $1,915 | $2,234 |
| 25 | Kingston | $2,100 | $1,827 | $2,271 |
| 26 | Laval | $2,096 | $1,732 | $2,356 |
| 27 | Nanaimo | $2,092 | $1,835 | $2,290 |
| 28 | Kelowna | $2,091 | $1,808 | $2,248 |
| 29 | East York | $2,050 | $1,791 | $2,312 |
| 30 | Cambridge | $2,042 | $1,847 | $2,139 |
| 31 | Greater Sudbury | $2,021 | $1,708 | $2,072 |
| 32 | Oshawa | $2,002 | $1,740 | $2,017 |
| 33 | Airdrie | $1,987 | $1,441 | $1,804 |
| 34 | Peterborough | $1,977 | $1,742 | $1,957 |
| 35 | Brossard | $1,970 | $1,722 | $2,199 |
| 36 | Kamloops | $1,956 | $1,731 | $2,042 |
| 37 | Montreal | $1,941 | $1,769 | $2,255 |
| 38 | Niagara Falls | $1,940 | $1,600 | $1,980 |
| 39 | Brantford | $1,936 | $1,807 | $2,043 |
| 40 | Hamilton | $1,929 | $1,654 | $2,235 |
| 41 | London | $1,924 | $1,670 | $2,058 |
| 42 | Kitchener | $1,908 | $1,684 | $2,078 |
| 43 | Calgary | $1,883 | $1,513 | $1,847 |
| 44 | St. Catharines | $1,817 | $1,558 | $1,931 |
| 45 | Welland | $1,779 | $1,522 | $1,985 |
| 46 | Gatineau | $1,775 | $1,592 | $1,852 |
| 47 | Côte Saint-Luc | $1,704 | $1,441 | $1,997 |
| 48 | Windsor | $1,685 | $1,492 | $1,921 |
| 49 | Sarnia | $1,680 | $1,495 | $1,728 |
| 50 | Winnipeg | $1,663 | $1,463 | $1,759 |
| 51 | Edmonton | $1,617 | $1,282 | $1,638 |
| 52 | Red Deer | $1,536 | $1,293 | $1,509 |
| 53 | Lethbridge | $1,519 | $1,342 | $1,571 |
| 54 | Quebec City | $1,516 | $1,279 | $1,611 |
| 55 | Saskatoon | $1,514 | $1,310 | $1,537 |
| 56 | Regina | $1,444 | $1,300 | $1,540 |
| 57 | Fort McMurray | $1,412 | $1,221 | $1,426 |
| 58 | Medicine Hat | $1,359 | $1,237 | $1,380 |
| 59 | Lloydminster | $1,348 | $1,072 | $1,386 |
| 60 | St. John's | $1,215 | $1,105 | $1,314 |
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 Across Canada?
Each $100,000 in mortgage balance costs an average of $530.91 per month on nesto’s lowest fixed 5-year rate at 4.24% and $495.28 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 $13.42. 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%.
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Frequently Asked Questions (FAQ) About the Canadian Housing Market in 2026
Are Canadian Housing Market Conditions Favouring Buyers or Sellers in 2026?
Canadian housing market conditions favour neither side decisively in 2026, because the national market is balanced and reached that point from two directions at once. The sales-to-new-listings ratio (SNLR) tightened to 51.3% in July, converging on its long-term average of 54.7%, and months of inventory eased to 4.7, the lowest reading of the year. The regional paths differ. Sellers’ markets across the Prairies, Quebec and the East Coast have been cooling for a year, while the Lower Mainland and Ontario’s Greater Golden Horseshoe have moved back up out of buyer-favouring conditions. Saskatchewan, New Brunswick and Newfoundland and Labrador remain borderline sellers’ markets.
Are Home Prices in Canada Going Up or Down in 2026?
Home prices in Canada are moving in both directions in 2026, depending on which measure you use, and the difference matters. In July, the national average price was $674,819, up 0.2% from the previous year, while the MLS Home Price Index composite benchmark was $661,800, down 3.3%. The average price reflects what happened in sales that month, so it rises when more activity shifts to more expensive provinces. The benchmark controls for the mix of homes sold and tracks the value of a comparable property. CREA forecasts the national average price to finish 2026 about 1.1% higher, at roughly $686,710. If you are budgeting a purchase, the benchmark is the more reliable guide.
Is Canada Entering a Nationwide Housing Recovery in 2026?
Canada is not entering a nationwide housing recovery in 2026, and the improvement that does exist is not spread evenly. Seasonally adjusted national sales rose for a fourth consecutive month in July, but activity was still 10.5% below the 10-year average and 5.3% lower than the same month in 2025. CREA expects full-year 2026 sales to fall 1.4% to 463,336 units, with Ontario the only province forecast to post an annual gain, and does not project a broad national increase until 2027. Annual price declines have narrowed each month since January, which suggests stabilisation rather than recovery.
Why Are Condominium Prices Falling Faster Than Detached Homes in Canada?
Condominium prices are falling faster than detached homes because new supply is arriving in Canada just as demand for higher-density housing reverses. Several years of heavy condominium construction were completed as international migration slowed sharply, leaving an unsold overhang that the Bank of Canada warned in July could slow the national recovery. The July benchmarks clearly show the spread. Apartments benchmarked at $461,500 nationally, against $737,000 for single-family homes. Investors and first-time buyers, the two groups most concentrated in this segment, have stepped back simultaneously.
What Is Limiting Canadian Housing Demand in 2026?
Population growth is the main factor limiting Canadian housing demand in 2026. Tighter immigration rules have pulled household formation below what the market was built to absorb, and Ontario’s population growth turned negative in the second quarter, running 0.9% below year-earlier levels after reaching 3.6% two years ago. Qualification is the second constraint. The mortgage stress test still requires borrowers to qualify at a rate above the one they will actually pay, so income caps buying power even where prices have fallen. Borrowing costs are no longer the obstacle they were, because the Bank of Canada has held its policy rate at 2.25% since October.
Will Canadian Home Sales Increase in 2026 Without Further Interest Rate Cuts?
Canadian home sales are already increasing month over month without further interest rate cuts, but they are still expected to finish 2026 lower than 2025. Seasonally adjusted sales have risen for four months in a row, while the Bank of Canada has held its policy rate at 2.25% since October. CREA forecasts 2026 sales to close 1.4% below 2025 before rising 3.7% in 2027 as pent-up demand returns. Stable rates have been enough to support a gradual improvement, but not enough to trigger a rebound.
Is It Cheaper to Rent or Buy in Canada in 2026?
Renting is still cheaper month-to-month than buying in most large Canadian markets in 2026, but the gap has stopped widening. Average asking rents have now fallen year-over-year for 22 consecutive months, reaching $2,037 in July. Rents have also risen for four straight months, and shelter inflation slowed to 1.3%, its weakest reading since May 2020. Home prices are lower than a year ago on a benchmark basis, while the Bank of Canada’s policy rate has held at 2.25%. The option which costs less over time depends on how long it takes to save the down payment, how long you plan to stay, and your mortgage interest rate.
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