According to the Canadian Real Estate Association (CREA) for June 2025, national home sales rose 2.8% month-over-month, extending the recovery seen in May. While the pace of sales remains modest compared to historical levels, activity has begun to pick up, especially in the Greater Toronto Area, which has led national momentum with a 17.3% sales jump since April.

• National average home price in June: $691,643, down 1.3% from June 2024
• MLS Home Price Index: down 0.2% month-over-month, and 3.7% year-over-year
• Sales-to-new listings ratio rose to 50.1%, suggesting a return to balanced market conditions
• Active listings up 11.4% year-over-year but only 1% below the long-term average
• Months of inventory dipped to 4.7, slightly below the five-month norm

Despite stronger home sales, new listings fell 2.9% in June, tightening supply conditions. CREA and RBC both point to signs that the national housing rebound, delayed by economic uncertainty earlier this year, is beginning to emerge, with a more robust fall market in sight, barring further external shocks, such as ongoing US tariff threats.

Key Highlights Across the Country

• Ontario & BC: Market weakness persists, with home prices declining across Toronto, Niagara, Guelph, and Vancouver. Inventory remains high, and affordability pressures are acute.
• Quebec & Atlantic Canada: Home prices continue to climb. Quebec City led the nation with a 13.5% year-over-year increase, while Montreal, Saint John, Fredericton, and Halifax also posted gains.
• Prairies: Regina, Saskatoon, and Winnipeg remain strong, all reporting annual price increases of 7% or more.
• Alberta: Calgary and Edmonton saw sales level off, but still sit at healthy levels, with prices showing some softness due to growing inventory.

Home Price Trends

Nationally, home prices are flat. The MLS HPI declined just 0.2% from May, following sharper drops earlier in 2025. That has brought temporary affordability relief, especially for homebuyers priced out during the pandemic surge.

CREA cautions that year-over-year comparisons may begin to look more favourable in the coming months due to the price correction that began in late 2024.

Market Demand and Inventory Levels

The tightening in the sales-to-new listings ratio (SNLR) and declining months of inventory indicate that demand is once again outpacing new supply, particularly in cities such as Montreal, Quebec City, and Regina. Meanwhile, buyers in Ontario and BC are still navigating high borrowing costs and oversupplied conditions.

Impact on Canadian Mortgages and Bank of Canada Outlook

The June housing rebound, combined with modest price declines, offers mixed signals for the Bank of Canada. For homebuyers, current conditions may offer better affordability in slower markets like Ontario and BC, but rising confidence in other regions could shrink opportunities quickly. Renewers continue to face high rates, but relief for fixed rates may be on the way as bond yields decline. Refinancers in strong markets may benefit from higher appraisals and greater access to equity, while those in softening markets could face stricter lending conditions.

The next Bank of Canada rate decision will likely reflect these regional disparities. Still, the national trend of stabilizing prices and improving sales supports the case for holding interest rates steady in the near term.

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Rents Ease Across Canada but Remain Elevated Over Time

According to the recent data from the National Rental Report, the average asking rent across Canada fell 2.7% year-over-year to $2,125 in June, continuing a nine-month trend of annual declines. Despite this recent softening, rents remain 12% higher than they were three years ago, with most of the growth driven by the purpose-built rental market and significant gains posted between 2022 and 2024.

National and Property Type Trends

• National average asking rent: $2,125 in June 2025
• Year-over-year change: -2.7%
• Three-year change: +11.9%
• Purpose-built rents: +24.6% in three years, despite a 1.1% YoY dip
• Secondary condo market: -4.9% YoY, only +1.6% over three years
• Houses/townhomes: -6.6% YoY, -0.2% over three years

Studios have outperformed all other unit types, with rents rising nearly 20% over the last three years. One- and two-bedroom units posted sharper annual declines (-3.5%), while three-bedroom units remained more resilient, up 4.4% YoY in purpose-built rentals.

Provincial and Municipal Comparisons

Across the provinces, the steepest annual rent declines were recorded in British Columbia and Alberta, both down 3.1%, followed closely by Ontario with a 2.3% drop. Over three years, however, Alberta and Saskatchewan led the country with the most significant increases in apartment rents, up 32.8% and 36.2%, respectively. Notably, Saskatchewan was the only province to post positive year-over-year rent growth in June at 4.2%, while still offering the lowest average rent in Canada at $1,396.

Among major cities, Calgary experienced the most significant annual decline in apartment rents at 7.9%, followed by Vancouver at 7.0%, Toronto at 4.7%, and Montreal at 2.3%. On the other hand, rent growth was strongest for specific unit types, including three-bedroom apartments in Vancouver, which increased by 13.9%, two-bedroom units in Ottawa with a 3.7% rise, and three-bedroom rentals in Montreal, up 3.2% compared to the previous year.

Notably, North Vancouver and Richmond Hill remain the most expensive cities to rent in Canada, while Lloydminster, Regina, and Winnipeg top the list of the most affordable rental markets in the country.

Shared Accommodation and Government Influence

Average asking rents for shared accommodations dropped 5.1% YoY to $939 in June, driven by steep declines in Vancouver (-11.6%) and Calgary (-6.6%). However, Ottawa bucked the trend, with shared accommodation rents increasing 12.8% to a record high of $1,058.

CMHC reports that caps on temporary residents and international students are also softening demand, particularly in major cities with a high concentration of students. New builds are contributing to the available supply, further downward pressure on rents in markets such as Toronto, Vancouver, and Halifax.

Falling Rents Could Tip the Scale on Mortgage Decisions and BoC Rate Strategy

With average asking rents falling across many cities, particularly in provinces hit hardest by affordability issues, pressure may ease slightly on prospective homebuyers choosing between renting and owning. However, continued high rent levels in many parts of the country, paired with declining mortgage rates, could make buying more appealing, especially in Prairie and Atlantic markets. Renewers may see lower rental costs as a reason to consider temporary renting if they can’t afford today’s mortgage rates. Refinancers, especially those owning rental properties, should consider that declining rents in some areas could impact rental income and cash flow. For the Bank of Canada, lower rental inflation may support their decision to hold or cut rates further, reinforcing easing conditions in both the ownership and rental housing sectors.

Canada Market Rents Summary

The average rent in Canada was $2,111 for the month of June 2025, which decreased by 1.6% on a year-over-year basis.

The average rent for a bachelor apartment in Canada was $1,623 for the month of June 2025, which decreased by 0.1% on a year-over-year basis.

The average rent for a 1-bedroom apartment in Canada was $1,890 for the month of June 2025, which decreased by 3.1% on a year-over-year basis.

The average rent for a 2-bedroom apartment in Canada was $2,294 for the month of June 2025, which decreased by 2.7% on a year-over-year basis.

The average rent for a 3-bedroom apartment in Canada was $1,890 for the month of June 2025, which decreased by 2.7% 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 $522.77 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 2.75%, and nesto’s prime rate is 4.95%.

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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