Canadian Housing Market Outlook 2026

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National Market Report Summary 2026

• The average selling price of a home in Canada decreased by 3.7% year-over-year to $664,900 in November 2025.
• The average selling price of a single-family home in Canada decreased by 3.4% year-over-year to $738,000 in November 2025.
• The average selling price of a townhouse/multiplex in Canada decreased by 4.8% year-over-year to $607,000 in November 2025.
• The average selling price of a condo in Canada decreased by 5% year-over-year to $473,300 in November 2025.
• The average rent in Canada by 5.7% year-over-year to $2,074 for November 2025. 
• December 18, 2025: Today’s lowest mortgage rate in Canada is for a 5-year fixed.

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Canada Housing Market Summary

Data from the Canadian Real Estate Association (CREA) indicates that the benchmark price of resale residential homes sold across Canada in November 2025 was $664,900, and it decreased by 3.7% compared to a year ago.

CREA also reported a sales-to-new-listings ratio (SNLR) of 53%, indicating Balanced market conditions nationally for November 2025.

Composite Home Prices

Single-family Home Prices

Townhouse and Multiplex Prices

Condo Prices

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Buyer Activity Stabilizes as Markets Enter a Holding Pattern

According to the Canadian Real Estate Association (CREA) and RBC Economics, Canada’s housing market ended the year in a stabilization phase rather than a full recovery. National home sales in November declined by 0.6% MoM and were 10.7% lower than a year earlier, confirming that momentum has flattened after the mid-year rally faded.

National prices continue to soften. The MLS Home Price Index declined by 0.4% MoM and was down 3.7% YoY, while the average national sale price fell by about 2% compared with last November. These moves indicate increasing price flexibility as sellers adjust their expectations to close deals before year-end.

Market performance remains uneven. Activity improved modestly in several Prairie and Québec markets, including Montréal, Winnipeg, Calgary, Edmonton, Regina, and Saskatoon. Toronto, Vancouver, and much of southern Ontario continue to lag as elevated supply, softer job confidence, and economic uncertainty weigh on demand.

• National home sales declined 0.6% MoM in November and were down 10.7% YoY
• The National Composite MLS Home Price Index fell 0.4% MoM and 3.7% YoY
• The average national home price was about $682,000, down 2% YoY
• Months of inventory held steady at 4.4, consistent with balanced market conditions

Market Balance Remains Intact, but Price Concessions Are Emerging

Despite slower activity, the national market balance has remained stable. New listings declined by 1.6% MoM in November, essentially matching the pullback in sales. This pullback in new listings kept the sales-to-new-listings ratio near 52.7%, a level that remains consistent with balanced conditions.

Active listings stood at roughly 173,000 units at the end of November. That figure is up 8.5% from a year earlier but still slightly below the long-term seasonal average, suggesting buyers have more choice without the market tipping into oversupply.

As CREA Senior Economist Shaun Cathcart noted, “At this point it’s looking like the mid-year rally in housing demand has veered into more of a holding pattern heading into 2026, coupled with what looks like some price concessions in November in order to get deals done before the end of the year.”

Regional Divergence Continues Across Canada

Regional differences remain a defining feature of the national outlook. In higher-priced, well-supplied markets such as Toronto and Vancouver, buyers continue to hold negotiating leverage, exerting downward pressure on prices. Calgary is also seeing easing values as record levels of new construction add to available inventory.

In contrast, parts of Québec and the Prairies remain tighter. Montréal continues to recover gradually, supported by stable inventory and relatively better affordability. In these markets, price performance has been more resilient, particularly for single-detached homes.

Interest Rate Certainty Is Shifting Buyer Psychology

Interest rates are no longer the dominant source of hesitation they were earlier in the year. With the Bank of Canada holding its policy rate at 2.25%, expectations have shifted from chasing further cuts to planning for stability. That predictability is beginning to change buyer behaviour, even as affordability challenges persist.

CREA Chair Valérie Paquin underscored this shift, stating that “the Bank of Canada’s clear signal that rates are now about as good as they’re likely going to get is the green light many fixed-rate borrowers have no doubt been waiting for.” This signal is encouraging some households to move from waiting to preparing.

What This Means for Canadian Mortgages and the Next BoC Move

For homebuyers, current conditions favour patience and negotiation, particularly in Ontario and BC, though affordability remains the primary constraint. 

Renewers benefit from rate stability, as it reduces payment shock risk and enables more precise planning between fixed and variable options.

Homeowners looking to refinance face a more selective environment. Lenders remain cautious, and softer home values in some regions limit the amount of equity accessed without affecting borrowing terms.

Looking ahead, unless inflation or labour market data materially surprise, the next Bank of Canada announcement is likely to reinforce a rate hold. That backdrop supports a slow, confidence-driven recovery rather than a rapid rebound in Canada’s housing market. To proactively prepare, now is the ideal time for potential buyers to review their pre-approval timelines, explore mortgage options, and position themselves advantageously for the anticipated market shifts in the coming year.

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Rents Continue to Cool as Supply Outpaces Demand

According to the December Rentals.ca Rent Report, Canada’s rental market continued to soften heading into year-end, extending a correction that began in the second half of the year. Average asking rents across all property types fell 3.1% YoY to $2,074 in November, the lowest level since June 2023 and roughly $100 below where rents stood 2 years ago. MoM, rents declined 1.5%, the year’s most significant monthly drop and steeper than typical seasonal patterns.

Despite the pullback, rents remain elevated relative to pre-2022 levels and are still 3.4% higher than 3 years ago, underscoring the limited relief for many tenants.

• Average asking rents declined 3.1% YoY and 1.5% MoM
• National rents are $100 lower than they were 2 years ago, but still above longer-term norms
• Demand indicators fell toward their lowest levels since 2021

Demand Weakens as New Supply Ramps Up

Rental demand cooled more sharply than usual through the fall. Active renter prospects declined for a fourth consecutive month in November and were also lower than a year earlier, signalling a structural slowdown rather than a seasonal pause.

Affordability pressures, reduced in-migration, and weaker consumer confidence are weighing on near-term demand. At the same time, record apartment completions are increasing competition among landlords, particularly in large urban centres where new purpose-built and condo supply has surged.

Purpose-Built Rentals Remain the Most Resilient Segment

While rents declined across all property types, purpose-built rentals remained the most stable and affordable segment. Average purpose-built rents fell just 2.0% YoY to $2,060, outperforming condo and secondary market units, which saw steeper declines.

Larger units continue to hold up best. Three-bedroom purpose-built rentals rose 2.5% YoY to $2,743, reflecting the persistent undersupply of family-sized rentals, even as smaller units face greater competition. One-bedroom rents declined 3.8% YoY to $1,811, among the weakest-performing unit types nationally.

Regional Trends Highlight Ongoing Divergence

Rental price declines were led by BC, Alberta, and Ontario. Average apartment rents fell 6.4% YoY in BC, 4.3% in Alberta, and 3.5% in Ontario, with Vancouver and Toronto both at their lowest rent levels in more than 3 years. Calgary rents also continued to slide, reaching a 22-month low after more than a year of consecutive declines.

In contrast, Saskatchewan remained the strongest performer, posting modest annual growth and leading the country with a 21.8% increase over the past 3 years. Montréal, Edmonton, and Ottawa recorded more moderate yearly declines, with Edmonton still showing the strongest longer-term growth among major markets.

Shared Accommodations Continue to Soften

Shared accommodation rents declined for the 12th straight month, falling 8.3% YoY to $914 nationally, the lowest level in more than 2 years. Vancouver posted the steepest decline, with shared rents down 12.5% YoY, reflecting weaker demand among students and younger renters amid softer labour market conditions.

Overall, the rental market is adjusting to a period of weaker demand and elevated new supply. While this has brought rents down from recent peaks, affordability pressures remain entrenched, and relief remains uneven across unit types and regions.

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Canada Market Rents Summary

The average rent in Canada was $2,074 for the month of November 2025, which by 5.7% on a year-over-year basis.

The average rent for a bachelor apartment in Canada was $1,580 for the month of November 2025, which decreased by 3.1% on a year-over-year basis.

The average rent for a 1-bedroom apartment in Canada was $1,811 for the month of November 2025, which decreased by 3.8% on a year-over-year basis.

The average rent for a 2-bedroom apartment in Canada was $2,179 for the month of November 2025, which decreased by 2.1% on a year-over-year basis.

The average rent for a 3-bedroom apartment in Canada was $1,811 for the month of November 2025, which decreased by 2.1% 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 $520.07 per month on nesto’s lowest fixed 5-year rate at and $497.95 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 $13.27. 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 2.25%, and nesto’s prime rate is 4.45%.

Rental Price Changes by City

Rental Price Changes by Province

Rental Price Growth by Housing Type

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Frequently Asked Questions on the Canadian Housing Market in 2025

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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.

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