According to the Canadian Real Estate Association (CREA) for August 2025, the national housing market is stabilizing after 2 years of volatility. Home sales rose slightly compared to July, while the average home price remained flat. The data highlights resilience in demand despite high borrowing costs, with both homebuyers and sellers adjusting to new realities.

August marked the 5th consecutive month of sales growth, making it the busiest August since 2021. RBC reported that activity is slowly but unevenly picking up across regions, with stronger gains in Montréal, Calgary, and Vancouver, while affordability-challenged Ontario markets continue to face downward price pressure.

• The national average home price $693,300 remains flat from July.
• Home sales numbered 40,714 transactions, up 1.1% MoM and the highest in 4 years.
• New listings numbered 79,527 units, up 2.6% giving buyers more choice.
• The sales-to-new-listings ratio hit 51.2% consistent with balanced conditions.

Home Price Index Shows Smallest Decline In Over A Year

The National Composite MLS Home Price Index edged down 0.1% to $687,300, leaving values 3.5% lower than a year earlier. The modest national dip hides sharp regional differences.

• Ontario markets, such as Toronto and Hamilton, continue to experience declines with elevated inventory levels.
• The Prairie provinces and Atlantic Canada posted monthly gains.
• Vancouver values remain under pressure, though improving demand is bringing supply and sales closer to balance.

TD economist Rishi Sondhi noted that supply and demand conditions remain relatively tight across several provinces. In BC and Ontario, conditions favour buyers, but the strength of more expensive properties has lifted average home prices in these regions.

New Listings Increase To Highest Level in 4 Years

CREA senior economist Shaun Cathcart highlighted that activity has been gradually picking up for 5 months. He added that pent-up demand from the spring is finally surfacing. Montréal and Ottawa posted stronger home sales while Toronto softened under affordability and inventory constraints.

National inventory ended August at 195,453 properties, up nearly 9% from last year. Housing supply stood at 4.4 months of inventory (MOI) at current levels, keeping conditions firmly balanced. Homebuyers now have more choices, while sellers are adapting to longer sales timelines.

Regional Highlights Show Diverging Market Conditions

• Toronto prices remain 27% below the 2022 peak, with active listings up 35%. Detached sales are stabilizing while condo prices continue to fall.
• Vancouver resales rose 6% MoM, marking the 3rd straight monthly increase. Buyers are re-engaging as listings improve.
• Montréal recorded one of its strongest Augusts since 2021, with resales and listings up more than 5%. Home prices continue to rise modestly under tight supply.
• Calgary and Edmonton home sales are turning upward, with Calgary up 8% MoM, though abundant new supply is keeping prices down 4.1% YoY.
• Atlantic Canada housing activity improved after a soft spring. Halifax market sees fewer extreme price swings and steadier confidence.

Canada Pushes Forward On Housing Supply Targets

Beyond market activity, the structural issue of housing supply remains in focus. The federal government has launched the Build Canada Homes agency with a $13-billion program to accelerate affordable construction. The first wave includes 4,000 homes planned across federal lands in Toronto, Ottawa, Winnipeg, Edmonton, Dartmouth, and Longueuil. Prime Minister Mark Carney stated that the core challenge in the housing market is that it is just too hard to build. Modular and factory-built approaches will be used to cut costs and timelines. A $1-billion transitional housing fund is also planned for at-risk households.

Mortgage Implications For Buyers and Sellers

Homebuyers now have greater negotiating room as balanced conditions reduce the chance of bidding wars. Sellers must price realistically to attract interest. Mortgage holders are still navigating affordability challenges, though expectations for rate cuts are shifting the outlook.

Refinancers: Stable values support equity take-out for debt consolidation or renovations, though borrowers must weigh break penalties and carrying costs for longer amortizations.

Homebuyers: Pre-approvals and stress testing remain critical. Insured mortgages provide more flexibility for qualifying in today’s balanced market.

Renewers: Shorter terms or blend-and-extend strategies may help manage risk while waiting for potential interest rate cuts.

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Canadian Rents Show Decline For Eleventh Straight Month

According to the September 2025 Rentals.ca and Urbanation Rent Report, average asking rents in Canada fell 2.3% YoY in August to $2,137. This marked the eleventh straight month of annual rent declines, the longest streak since the pandemic, when rents dropped for fifteen consecutive months.

The August decline was less steep than the 3.7% drop in July and represented the smallest annual decrease since November 2024. Despite falling on a yearly basis, rents rose 0.8% MoM, pulling the 3-month trend back into positive territory with a 0.4% gain.

Apartment And Condo Segments Show Diverging Trends

Purpose-built rental apartments proved most resilient, with asking rents down only 0.4% YoY. By comparison, condo rents dropped 3.7% and house and townhouse rents fell 6%. Over the past 3 years, rental prices for purpose-built units are up 22.6%, condos up 4.3%, while houses are essentially flat.

Saskatchewan and Manitoba are the Only Provincial Outliers with Rent Growth

• Alberta: Apartment rents declined 3.5% annually to $1,746, though they remain up 23.5% over 3 years.
• British Columbia: Average apartment rents dropped 2.7% to $2,467.
• Ontario: Apartment rents fell 2.5% to $2,330, with 1-bedroom units down nearly 5%.
• Québec: Apartment rents held steady at $1,959 overall, with 3-bedroom units up 3.7%.
• Saskatchewan: Led the country with 3.2% annual growth, supported by the lowest provincial average at $1,381.
• Manitoba: Rents increased 1.2% to $1,613, making it the only other province with annual gains.

Kingston Sees Fastest Pace of Rental Price Increase

• Kingston: Apartment rents jumped 15% YoY, the fastest pace in the country.
• Vancouver: Rents dropped 9.5% to $2,820, the steepest decline among large markets.
• Toronto: Average apartment rents dipped 3.4% to $2,606, the smallest annual decline in over a year.
• Montréal: Rents eased only 0.5% to $1,978, the mildest decline among major cities.
• Edmonton: Apartment rents climbed nearly 1% to $1,585 and have surged 25.5% over the last 3 years.

Supply And Policy Shifts Aim To Stabilize Affordability

Rising supply has been a significant factor driving rent moderation. Shared accommodation listings jumped 19% YoY in August, pushing average room rents down to $952 nationally. In parallel, the federal Build Canada Homes agency has announced a $13-billion program to construct 4,000 affordable units on federal land across Toronto, Ottawa, Winnipeg, Edmonton, Dartmouth, and Longueuil. Prime Minister Mark Carney emphasized that lowering rents requires faster construction approvals and cost-efficient building methods such as modular and factory-built housing.

Housing Implications For Tenants and Landlords

Rent moderation provides short-term relief for tenants facing affordability stress. However, rents remain above pre-pandemic levels, and demand will likely pick up again with immigration and household formation.

• Renters continue to benefit from slowing price growth, particularly in Ontario and BC, though availability is still a concern in hotter markets.
• Homebuyers may find homeownership more appealing as the gap between monthly rents and mortgage payments narrows, especially if the Bank of Canada returns to easing monetary policy.
• Renewers And Refinancers could see downward pressure on rates translate into improved affordability and qualification, especially as mortgage lenders adjust to a softer inflation backdrop.

Canada Market Rents Summary

The average rent in Canada was $2,122 for the month of August 2025, which decreased by 1% on a year-over-year basis.

The average rent for a bachelor apartment in Canada was $1,641 for the month of August 2025, which increased by 1.4% on a year-over-year basis.

The average rent for a 1-bedroom apartment in Canada was $1,890 for the month of August 2025, which decreased by 3% on a year-over-year basis.

The average rent for a 2-bedroom apartment in Canada was $2,305 for the month of August 2025, which decreased by 1.5% on a year-over-year basis.

The average rent for a 3-bedroom apartment in Canada was $1,890 for the month of August 2025, which decreased by 1.5% on a year-over-year basis.

How Does Renting Compare with Homeownership in Today’s Housing Market?

Each $100,000 in mortgage balance costs an average of $520.08 per month on nesto’s lowest fixed 5-year rate at and $527.84 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 $13.71. 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 2.50%, and nesto’s prime rate is 4.70%.

Rental Price Changes by City

Rental Price Changes by Province

Rental Price Growth by Housing Type

Frequently Asked Questions on Canadian Housing Market Outlook for 2025

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