Canadian Housing Market Outlook 2026
Canadian Home Sales and Prices Slip as Fixed Mortgage Rates Climb
According to the Canadian Real Estate Association (CREA), national home sales fell 2.3% from August to September 2026 on a seasonally adjusted basis, and unadjusted sales were 7.7% below September 2025. New listings dropped 1.8% from August, and the MLS Home Price Index (HPI) composite edged down 0.4% month over month and was 3.4% lower than a year earlier. September was the first month since January that the annual decline in national benchmark prices grew larger.
- The national composite benchmark price was $651,400 in September, down 3.4% YoY, and the average sale price was $666,538, down 1.6% YoY.
- Slightly more than 200,000 properties were listed for sale at the end of September, up 1.8% YoY and equal to 4.9 months of inventory.
- The national sales-to-new-listings ratio (SNLR) eased to 48.8% from 49.1% in August, below the long-term average of 54.7% but within the 45% to 65% range that CREA considers balanced market conditions.
CREA’s senior economist tied the pullback to a fresh jump in fixed mortgage rates, and the Bank of Canada is now widely expected to hike rates before the end of the year. The Bank of Canada’s policy rate has been 2.25% since October 2025. Regionally, the monthly drop in national benchmark prices was driven by a decline in Ontario, offset in part by gains on the Prairies, in Quebec and on the East Coast.
With rates moving quickly, start by comparing mortgage rates, then speak with our nesto mortgage experts about whether to lock in your rate now or keep your options open.
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Canadian Housing Market Highlights
- The average selling price of a home in Canada decreased by 3.84% year-over-year to $651,400 in September 2026.
- The average selling price of a single-family home in Canada decreased by 3.43% year-over-year to $723,500 in September 2026.
- The average selling price of a townhouse/multiplex in Canada decreased by 4.77% year-over-year to $590,700 in September 2026.
- The average selling price of a condo in Canada decreased by 5.36% year-over-year to $455,700 in September 2026.
- The average rent in Canada decreased by 4.19% year-over-year to $2,034 for September 2026.
- October 28, 2026: Today’s lowest mortgage rate in Canada is 4.59% 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 September 2026 was $651,400, and it decreased by 3.84% compared to a year ago.
CREA also reported a sales-to-new-listings ratio (SNLR) of 48.8%, indicating balanced market conditions nationally for September 2026.
| Canada | Composite Price September 2026 | Composite Price August 2026 | YoY Change (%) | MoM Change (%) |
|---|---|---|---|---|
| Single Family Home | $723,500 | $731,200 | decreased by 3.43% | decreased by 1.05% |
| Townhouse/Multiplex | $590,700 | $593,800 | decreased by 4.77% | decreased by 0.52% |
| Condo / Apartments | $455,700 | $459,800 | decreased by 5.36% | decreased by 0.89% |
| Composite | $651,400 | $657,500 | decreased by 3.84% | decreased by 0.93% |
| Rent | $2,034 | $2,035 | decreased by 4.19% | decreased by 0.05% |
Canadian Home Price Changes Over The Last Decade
Composite Home Prices
The average selling price of a home in Canada was $651,400 for the month of September 2026; that’s decreased by 0.93% month-over-month. On a year-over-year basis, Canadian home prices have decreased by 3.84%.
National Composite Home Price
Monthly changes to Canada’s composite home price over the last 10 years.
Single-family Home Prices
The average selling price of a single-family home in Canada was $723,500 for the month of September 2026; that’s decreased by 1.05% month-over-month. On a year-over-year basis, single-family home prices in Canada have decreased by 3.43%.
National Single-Family Home Price
Monthly changes to Canada’s single-family home price over the last 10 years.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Canada was $590,700 for the month of September 2026; that’s decreased by 0.52% month-over-month. On a year-over-year basis, the price of a townhouse in Canada has decreased by 4.77%.
National Townhouse & Multiplex Home Price
Monthly changes to Canada’s townhouse and multiplex home prices over the last 10 years.
Condo Prices
The average selling price of a condo in Canada was $455,700 for the month of September 2026; that’s decreased by 0.89% month-over-month. On a year-over-year basis, the price of a condo in Canada has decreased by 5.36%.
National Condo Price
Monthly changes to Canada’s condominium apartment home prices over the last 10 years.
Canadian Housing Market Conditions
Number of Home Sales
Home sales volume in Canada was 36,842 during September 2026, that’s decreased by 2.37% month-over-month. On a year-over-year basis, sales in Canada have decreased by 7.69%.
National Home Sale Volume
Canada’s home sale volume through MLS over the past 12 months.
New Listings
New listings in Canada were 75,466 during September 2026, that’s decreased by 1.75% month-over-month change. On a year-over-year basis, new listings in Canada have decreased by 4.34%.
National New Listings
Canada’s new listings over the past 12 months.
Sales-to-New-Listings Ratio (SNLR)
The sales-to-new-listings ratio (SNLR) in Canada was 48.8% during September 2026, indicating a balanced market. On a monthly basis, that’s decreased by 0.61% month-over-month. Canada’s yearly sales-to-new-listings ratio has decreased by 3.56%.
National SNLR
Monthly change in Canada’s sales-to-new-listings ratio (SNLR) over the past 12 months.
The sales-to-new-listings ratio (SNLR) measures home sales relative 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% indicates a balanced market, while an SNLR over 60% indicates a seller’s market.
National Market Conditions
| Oct 2025 | balanced market |
| Nov 2025 | balanced market |
| Dec 2025 | balanced market |
| Jan 2026 | balanced market |
| Feb 2026 | balanced market |
| Mar 2026 | balanced market |
| Apr 2026 | balanced market |
| May 2026 | balanced market |
| Jun 2026 | balanced market |
| Jul 2026 | balanced market |
| Aug 2026 | balanced market |
| Sep 2026 | balanced market |
SNLR — last 12 months
Monthly change in Canada’s market conditions over the past 12 months.
Short-Term National Composite Home Price Trends
Monthly changes to Canada’s MLS composite home price over the last 12 months.
Provincial Composite Home Prices
| Province | Composite Price September 2026 | Composite Price September 2025 | YoY Change (%) | Composite Price August 2026 | MoM Change (%) |
|---|---|---|---|---|---|
| British Columbia | $868,900 | $913,100 | decreased by 4.84% | $874,600 | decreased by 0.65% |
| Alberta | $508,500 | $510,700 | decreased by 0.43% | $511,500 | decreased by 0.59% |
| Saskatchewan | $376,700 | $366,300 | increased by 2.84% | $381,600 | decreased by 1.28% |
| Manitoba | $388,200 | $387,401 | increased by 0.21% | $388,900 | decreased by 0.18% |
| Ontario | $745,400 | $772,800 | decreased by 3.55% | $749,800 | decreased by 0.59% |
| Quebec | $537,100 | $531,100 | increased by 1.13% | $540,800 | decreased by 0.68% |
| New Brunswick | $341,700 | $332,600 | increased by 2.74% | $342,400 | decreased by 0.20% |
| Nova Scotia | $423,200 | $434,200 | decreased by 2.53% | $435,000 | decreased by 2.71% |
| Prince Edward Island | $377,900 | $376,200 | increased by 0.45% | $372,800 | increased by 1.37% |
| Newfoundland and Labrador | $355,600 | $337,000 | increased by 5.52% | $358,400 | decreased by 0.78% |
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Canadian Asking Rents Extend Their Annual Decline to 24 Months
According to the National Rental Report for October 2026, average asking rent for all property types in Canada was $2,034 in September 2026, down 4.2% from a year earlier. That marks the 24th consecutive month of annual decline. Rent slipped $1 from August’s $2,035, the second monthly decrease in a row after four straight increases from April to July.
- One-bedroom rent averaged $1,756, down 4.4% YoY, and two-bedroom rent averaged $2,138, down 3.7% YoY. Condo rents fell the most, down 7.8% YoY to $2,052, while purpose-built apartments dropped 2.7% to $2,036 and houses and townhomes fell 7.4% to $2,016.
- Asking rent fell YoY in British Columbia (down 2.9% to $2,403), Ontario (down 4.8% to $2,240), Alberta (down 2.6% to $1,780), Manitoba (down 3.2% to $1,649) and Quebec (down 1.7% to $1,933). Saskatchewan rose 1.4% to $1,490, and Atlantic Canada gained 3.5% to $2,231.
- Average asking rent is 9.2% below its May 2024 peak of $2,202 and 7.3% lower than two years ago, but it remains 16.2% above September 2021.
Rentals.ca and Urbanation point to early stability in Toronto and Vancouver, where rents fell to their lowest September levels in five years but have risen over the past six months. They cite a peak in construction inventory and revised population data showing a modest increase instead of a decline. Average asking rent per square foot in the six largest markets was $2.48, down 1.5%, and the average available unit measured 852 square feet, down from 858 a year earlier as new supply skews towards smaller units.
If renting is weighing on your mind, reach out to our nesto mortgage experts and compare mortgage rates to see how a monthly mortgage payment stacks up against your rent.
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Canada Market Rents Snapshot
The average rent in Canada was $2,034 for the month of September 2026, which decreased by 4.19% year-over-year.
The average rent for a 1-bedroom apartment in Canada was $1,756 as of September 2026, which decreased by 4.36% year-over-year.
The average rent for a 2-bedroom apartment in Canada was $2,138 as of September 2026, which decreased by 3.69% year-over-year.
Average Rents for Cities Across Canada
| Rank | City | Total Avg | 1 Bed | 2 Bed |
|---|---|---|---|---|
| 1 | North Vancouver | $3,028 | $2,466 | $3,477 |
| 2 | Vancouver | $2,754 | $2,373 | $3,271 |
| 3 | Burnaby | $2,564 | $2,111 | $2,785 |
| 4 | Toronto | $2,556 | $2,220 | $2,937 |
| 5 | North York | $2,528 | $2,093 | $2,692 |
| 6 | Kanata | $2,501 | $2,265 | $2,691 |
| 7 | Coquitlam | $2,482 | $2,053 | $2,608 |
| 8 | Oakville | $2,460 | $2,165 | $2,703 |
| 9 | Etobicoke | $2,431 | $2,099 | $2,644 |
| 10 | Barrie | $2,397 | $2,148 | $2,552 |
| 11 | Burlington | $2,379 | $2,074 | $2,389 |
| 12 | Vaughan | $2,363 | $2,114 | $2,569 |
| 13 | Mississauga | $2,337 | $2,036 | $2,423 |
| 14 | Halifax | $2,324 | $2,002 | $2,508 |
| 15 | Brampton | $2,261 | $1,990 | $2,334 |
| 16 | Victoria | $2,253 | $1,987 | $2,632 |
| 17 | New Westminster | $2,241 | $1,881 | $2,734 |
| 18 | Langley | $2,239 | $1,868 | $2,426 |
| 19 | Surrey | $2,227 | $1,807 | $2,251 |
| 20 | Guelph | $2,225 | $1,961 | $2,292 |
| 21 | Ajax | $2,214 | $1,927 | $2,294 |
| 22 | Ottawa | $2,200 | $1,969 | $2,445 |
| 23 | Scarborough | $2,178 | $1,855 | $2,315 |
| 24 | Waterloo | $2,158 | $1,884 | $2,302 |
| 25 | Nanaimo | $2,157 | $1,897 | $2,261 |
| 26 | Kingston | $2,150 | $1,930 | $2,308 |
| 27 | Laval | $2,131 | $1,712 | $2,364 |
| 28 | Kelowna | $2,111 | $1,834 | $2,270 |
| 29 | Brossard | $2,083 | $1,790 | $2,190 |
| 30 | Cambridge | $2,055 | $1,863 | $2,143 |
| 31 | East York | $2,044 | $1,800 | $2,355 |
| 32 | Airdrie | $2,013 | $1,466 | $1,750 |
| 33 | Oshawa | $1,993 | $1,724 | $2,006 |
| 34 | Niagara Falls | $1,988 | $1,714 | $1,960 |
| 35 | Greater Sudbury | $1,982 | $1,745 | $2,076 |
| 36 | Montreal | $1,961 | $1,746 | $2,261 |
| 37 | Kamloops | $1,957 | $1,701 | $2,023 |
| 38 | Kitchener | $1,935 | $1,709 | $2,063 |
| 39 | Peterborough | $1,926 | $1,692 | $1,964 |
| 40 | Brantford | $1,923 | $1,780 | $2,033 |
| 41 | Hamilton | $1,910 | $1,657 | $2,130 |
| 42 | London | $1,897 | $1,628 | $1,998 |
| 43 | Calgary | $1,883 | $1,508 | $1,834 |
| 44 | St. Catharines | $1,830 | $1,518 | $1,959 |
| 45 | Welland | $1,792 | $1,540 | $1,920 |
| 46 | Gatineau | $1,769 | $1,625 | $1,810 |
| 47 | Côte Saint-Luc | $1,655 | $1,410 | $1,875 |
| 48 | Winnipeg | $1,653 | $1,435 | $1,764 |
| 49 | Windsor | $1,638 | $1,467 | $1,843 |
| 50 | Edmonton | $1,633 | $1,281 | $1,643 |
| 51 | Quebec City | $1,620 | $1,308 | $1,642 |
| 52 | Red Deer | $1,614 | $1,338 | $1,503 |
| 53 | Sarnia | $1,583 | $1,408 | $1,642 |
| 54 | Lethbridge | $1,573 | $1,355 | $1,558 |
| 55 | Saskatoon | $1,559 | $1,305 | $1,536 |
| 56 | Regina | $1,468 | $1,305 | $1,521 |
| 57 | Lloydminster | $1,392 | $1,108 | $1,422 |
| 58 | Fort McMurray | $1,386 | $1,147 | $1,372 |
| 59 | St. John's | $1,362 | $1,167 | $1,328 |
| 60 | Medicine Hat | $1,360 | $1,232 | $1,391 |
Source: Rentals.ca Network Data & Urbanation Inc.
Average Rent by Province
| LOCATION | Total | 1B | 2B | 3B |
|---|---|---|---|---|
| AB | $1,780 | $1,409 | $1,745 | $2,177 |
| BC | $2,231 | $1,904 | $2,355 | $2,850 |
| MB | $2,403 | $2,045 | $2,649 | $3,313 |
| ON | $1,649 | $1,428 | $1,751 | $2,008 |
| QC | $2,240 | $1,963 | $2,410 | $2,902 |
| SK | $1,933 | $1,694 | $2,144 | $2,558 |
| Atlantic Canada | $1,490 | $1,284 | $1,504 | $1,993 |
| Canada | $2,034 | $1,756 | $2,138 | $2,489 |
Average Rent by Property Type Across Canada
| TYPE | Total | 1B | 2B | 3B |
|---|---|---|---|---|
| Apartment | $2,036 | $1,799 | $2,221 | $2,715 |
| Condominium | $2,052 | $1,844 | $2,161 | $2,769 |
| House/Townhouse | $2,016 | $1,311 | $1,732 | $2,299 |
| All | $2,034 | $1,756 | $2,138 | $2,489 |
How Does Renting Compare With Homeownership Across Canada?
Each $100,000 in mortgage balance costs an average of $564 per month on nesto’s lowest fixed 5-year rate at 4.59%, and $503 per month on nesto’s lowest adjustable 5-year rate at 3.41%.
On the variable side, a 0.25% change in the Bank of Canada’s policy rate moves that payment by roughly $13.47 per $100,000 if rates rise, or $13.27 if they fall. Fixed payments aren’t affected the same way mid-term—a fixed rate is locked for the term and tracks bond yields, not the policy rate directly, so this sensitivity applies only to the variable side.
The interest rates used for the calculation are those offered on insured purchases with less than a 20% down payment, on a 25-year amortization, as of October 28, 2026 and are subject to change. Canada’s policy rate is 2.25%, and nesto’s prime rate is 4.45%.
We're curious…
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 do not decisively favour either side in 2026, as the national market is balanced. The sales-to-new-listings ratio (SNLR) eased to 48.8% in September from 49.1% in August, inside the 40% to 60% range for a balanced market, and inventory stood at 4.9 months. A recent jump in fixed mortgage rates is weighing on activity, according to CREA. The Bank of Canada’s policy rate has been 2.25% since October 2025, and it will next decide on October 28.
Are Home Prices in Canada Going Up or Down in 2026?
Home prices in Canada are moving in both directions in 2026, depending on the measure you use, and the difference matters. In September, the national average sale price was $666,538, down 1.6% from a year earlier, while the MLS Home Price Index composite benchmark was $651,400, down 3.4% year over year and 0.4% from August. The average price reflects that month’s home sales, 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. 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 any improvement that does exist is not spread evenly. Seasonally adjusted national sales fell 2.3% in September, and unadjusted sales were 7.7% below September 2025. September was also the first month since January that the annual decline in the national benchmark price grew larger, with the composite down 3.4% year over year. Ontario drove the monthly drop in the benchmark, offset in part by gains on the Prairies, in Quebec and on the East Coast. That points to stabilization at best, not 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 has weighed on the segment. The September benchmarks clearly show the spread. Apartments benchmarked at $455,700 nationally, against $723,500 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?
Slower population growth is the primary factor limiting housing demand in Canada in 2026. Statistics Canada’s revised estimates, as reported by RBC Economics, put annual population growth at 0.5% as of the second quarter, the smallest increase on record, so household formation is running below what the market was built to absorb. Qualification is the second constraint. The mortgage stress test still requires borrowers to qualify at a higher rate than they will actually pay, so income caps buying power when prices have fallen. Borrowing costs are the third. Fixed mortgage rates have climbed recently, and the Bank of Canada’s policy rate has stood at 2.25% since October 2025, with its next decision due October 28, 2026.
Will Canadian Home Sales Increase in 2026 Without Further Interest Rate Cuts?
Canadian home sales have not found a path higher in 2026 without further interest rate cuts. Seasonally adjusted sales fell 2.3% in September and unadjusted sales were 7.7% below a year earlier, while the Bank of Canada’s policy rate has held at 2.25% since October 2025. CREA’s senior economist tied the pullback to a fresh jump in fixed mortgage rates, and CREA says the Bank of Canada is now widely expected to hike rates before the end of the year, with its next decision due October 28, 2026. Stable policy rates have supported activity, 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. Average asking rent has now fallen year over year for 24 consecutive months, reaching $2,034 in September, down 4.2% from a year earlier. Home prices are down 3.4% nationally year over year on a benchmark basis, while the Bank of Canada’s policy rate has been 2.25% since October 2025 and its next decision is October 28, 2026. Cheaper options over time depend on how long it takes to save the down payment, how long you plan to stay, and your mortgage interest rate.
Why Choose nesto
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