Canadian Housing Market Outlook 2026

Canadian Housing Market Remains Quiet Ahead of Spring

According to the Canadian Real Estate Association, home sales continued to move at a slow pace in February 2026. However, activity showed signs of picking up toward the end of the month. National sales edged down 1.3% month over month, as many buyers continued to wait for mortgage rates to find a bottom or for prices to level off in specific regions.

Pent-Up Demand Poised to Drive Spring Momentum

While the start of the year has been quiet, experts expect a significant release of pent-up demand from first-time buyers as the spring market begins in April. The number of newly listed properties fell by 3.9% in February, reversing the jump seen in January and resulting in a tighter national sales-to-new-listings ratio of 47.6%.

• The national average sale price for February was $663,828, representing a marginal 0.2% decline from the same month last year.
• The National Composite MLS Home Price Index fell 0.6% month-over-month and remains 4.8% below February 2025 levels.
• There were 151,850 properties listed for sale across all Canadian MLS systems at the end of the month, a 3.7% increase from one year ago.
• Inventory levels nationally sit at five months, which is exactly in line with the long-term average for the Canadian market.
• Market activity was notably slow in the Ontario corridor between Windsor and Toronto, whereas price increases were observed in several other provinces.

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Canadian Housing Market Highlights

• The average selling price of a home in Canada decreased by 4.8% year-over-year to $661,300 in February.
• The average selling price of a single-family home in Canada decreased by 4.5% year-over-year to $735,000 in February.
• The average selling price of a townhouse/multiplex in Canada decreased by 6% year-over-year to $599,300 in February.
• The average selling price of a condo in Canada decreased by 5.8% year-over-year to $469,300 in February.
• The average rent in Canada decreased by 2.8% year-over-year to $2,030 for February. 
• March 21, 2026: Today’s lowest mortgage rate in Canada is 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 February was $661,300, and it decreased by 4.8% compared to a year ago.

CREA also reported a sales-to-new-listings ratio (SNLR) of 48%, indicating Balanced market conditions nationally for February.

Composite Home Prices

Single-family Home Prices

Townhouse and Multiplex Prices

Condo Prices

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Canadian Rents See A Welcome Cool-Down for Tenants

According to the Rentals.ca March 2026 Rent Report, the average asking rent in Canada fell to $2,030 in February. This mark represents a 33-month low and is the 17th consecutive month of year-over-year rent declines across the country. This trend is signalling a significant shift in the Canadian housing market as affordability begins to improve for many tenants.

Negotiation Power Shifts as Rents Soften

Nationally, average asking rents declined 2.8% year-over-year in February 2026. There was also a 1.3% monthly decline from January, which is the largest February decline since 2020. This cooling trend is particularly evident in high-density segments, making urban lifestyles more affordable for those seeking them.

• Condominium rental units saw the steepest price drops, falling 5.1% year-over-year.
• Purpose-built rentals declined by 1.9% at the same time.
• One-bedroom rents fell 3.5% year-over-year to an average of $1,781.
• Three-bedroom units increased by 0.6% to $2,486 due to limited supply for families.
• Vancouver one-bedroom asking prices fell 5.7% year-over-year, part of a broader 11.8% decline from the province’s 2023 peak.

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Canada Market Rents Snapshot

The average rent in Canada was $2,030 for the month of February, which decreased by 2.8% year over year.

The average rent for a 1-bedroom apartment in Canada was $1,781 for the month of February, which decreased by 3.5% year over year.

The average rent for a 2-bedroom apartment in Canada was $2,162 for the month of February, which decreased by 1.1% year over year.

Rental Price Changes by City

Rank	CITY	Total Average	1 Bedroom	2 Bedrooms	Year-over-Year Change
1	North Vancouver	$2,969	$2,465	$3,330	−4.4%
2	Vancouver	$2,672	$2,376	$3,289	−4.5%
3	North York	$2,524	$2,119	$2,689	0.00%
4	Burnaby	$2,517	$2,099	$2,788	−6.6%
5	Coquitlam	$2,513	$2,051	$2,750	−6.3%
6	Toronto	$2,482	$2,201	$2,857	−6.8%
7	Oakville	$2,456	$2,188	$2,524	−21.3%
8	Kanata	$2,405	$2,251	$2,564	−14.3%
9	Etobicoke	$2,375	$2,092	$2,548	−8.4%
10	Mississauga	$2,373	$2,077	$2,478	−7.6%
11	Burlington	$2,356	$2,052	$2,435	−5.0%
12	Langley	$2,344	$2,069	$2,467	−1.2%
13	Scarborough	$2,294	$1,926	$2,387	−6.8%
14	Kingston	$2,287	$1,927	$2,455	23.00%
15	Brampton	$2,282	$1,986	$2,302	−2.8%
16	Victoria	$2,271	$1,998	$2,607	−3.3%
17	Halifax	$2,269	$2,023	$2,550	1.80%
18	East York	$2,267	$1,913	$2,498	−8.8%
19	Vaughan	$2,254	$2,072	$2,516	−5.6%
20	Waterloo	$2,223	$2,055	$2,329	−9.2%
21	Ajax	$2,217	$1,812	$2,251	−0.5%
22	Guelph	$2,183	$1,973	$2,241	−8.6%
23	Barrie	$2,154	$1,926	$2,172	0.20%
24	Ottawa	$2,143	$1,960	$2,489	−2.3%
25	New Westminster	$2,131	$1,887	$2,650	−5.1%
26	Hamilton	$2,115	$1,767	$2,258	8.50%
27	Laval	$2,105	$1,711	$2,343	8.70%
28	Surrey	$2,090	$1,801	$2,236	−7.4%
29	Greater Sudbury	$2,080	$1,897	$2,145	−5.8%
30	Nanaimo	$2,057	$1,812	$2,324	7.20%
31	Cambridge	$2,039	$1,802	$2,104	−6.1%
32	Kitchener	$2,019	$1,790	$2,143	−4.6%
33	Oshawa	$2,018	$1,746	$2,058	−4.8%
34	Kamloops	$2,018	$1,773	$2,180	5.50%
35	Brantford	$1,996	$1,820	$2,103	2.80%
36	Kelowna	$1,994	$1,703	$2,142	−9.9%
37	Brossard	$1,973	$1,799	$2,049	−9.0%
38	Peterborough	$1,956	$1,711	$1,995	−0.6%
39	Montreal	$1,925	$1,722	$2,257	0.10%
40	Airdrie	$1,914	$1,442	$1,702	−4.3%
41	London	$1,912	$1,647	$2,048	−6.1%
42	Niagara Falls	$1,901	$1,615	$1,936	−9.2%
43	Calgary	$1,870	$1,531	$1,844	−3.9%
44	Gatineau	$1,869	$1,639	$2,049	−8.2%
45	St. Catharines	$1,832	$1,626	$1,937	−2.7%
46	Sarnia	$1,761	$1,538	$1,836	−4.0%
47	Welland	$1,704	$1,546	$1,872	1.70%
48	Winnipeg	$1,671	$1,427	$1,800	3.20%
49	Windsor	$1,657	$1,517	$1,825	−1.5%
50	Edmonton	$1,590	$1,302	$1,639	−0.7%
51	Côte Saint-Luc	$1,567	$1,415	$1,802	−21.9%
52	Red Deer	$1,556	$1,282	$1,511	2.10%
53	Saskatoon	$1,555	$1,329	$1,555	2.10%
54	Lethbridge	$1,502	$1,361	$1,582	0.00%
55	Regina	$1,454	$1,259	$1,521	3.30%
56	Quebec City	$1,444	$1,341	$1,597	−15.2%
57	Medicine Hat	$1,364	$1,240	$1,386	−0.6%
58	Fort McMurray	$1,353	$1,165	$1,411	−0.7%
59	Lloydminster	$1,255	$1,090	$1,354	8.40%
60	St. John's	$1,163	$1,084	$1,253	−5.1%

Average Rent by City
Source: Rentals.ca Network Data & Urbanation Inc.

Rental Price Changes by Province

Rental Price Growth by Housing Type

How Does Renting Compare with Homeownership Across Canada?

Each $100,000 in mortgage balance costs an average of $520.07 per month on nesto’s lowest fixed 5-year rate at and $495.28 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 $13.23. 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%.

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Frequently Asked Questions (FAQ) About the Canadian Housing Market in 2026

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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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