Canadian Housing Market Outlook 2025

---

National Market Report Summary

• The average selling price of a home in Canada decreased by 3% year-over-year to $679,600 in October 2025.
• The average selling price of a single-family home in Canada decreased by 2.6% year-over-year to $757,200 in October 2025.
• The average selling price of a townhouse/multiplex in Canada decreased by 4% year-over-year to $619,500 in October 2025.
• The average selling price of a condo in Canada decreased by 5.2% year-over-year to $478,900 in October 2025.
• The average rent in Canada decreased by 1.3% year-over-year to $2,094 for October 2025. 
• November 25, 2025: Today’s lowest mortgage rate in Canada is for a 5-year fixed.

---

---

Composite Home Prices

Single-family Home Prices

Townhouse and Multiplex Prices

Condo Prices

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 October 2025 was $679,600, and it decreased by 3% compared to a year ago.

CREA also reported a sales-to-new-listings ratio (SNLR) of 52%, indicating a Balanced nationally for October 2025.

---

National Home Sales Up as Prices Stabilize and Supply Tightens

According to the Canadian Real Estate Association (CREA), national home sales for October increased by 0.9% MoM, marking the sixth consecutive month of gains. Activity remains 4.3% below last year, but the overall trend has strengthened as declining mortgage rates lift buyer confidence. New listings fell 1.4% MoM, tightening conditions, while national price trends show early signs of levelling after several months of softness. Inventory remains close to long-term norms, suggesting a gradual, rate-driven recovery rather than a dramatic market shift.

National Demand Strengthens as MLS HPI Edges Up 0.2% MoM

National sales improved for the second consecutive month, supported by lower fixed and variable mortgage rates and a more stable interest-rate backdrop. CREA reported that buyer activity resumed its upward trajectory after September’s brief pullback. The national MLS HPI increased by 0.2% MoM but remained down 3% YoY. The national average home sale price declined 1.1% YoY to approximately $690,000.

• Home sales increased 0.9% MoM
• New listings decreased 1.4% MoM
• Sales to new listings ratio (SNLR) rose to 52.2%
• MLS HPI up 0.2% MoM, down 3% YoY
• Average home price down 1.1% YoY
• National inventory held at 4.4 months of supply 

Regional Activity Splits as Western Markets Rebound and Ontario Softens

CREA data indicate widening regional differences. Western markets, including Vancouver, the Fraser Valley, Calgary, and Saskatoon, recorded MoM sales gains as more homebuyers re-entered the market following recent rate cuts. Montréal also saw stronger buyer engagement despite fewer new listings, leading to continued upward pressure on detached and condo values. In contrast, Toronto, Edmonton, Regina, and Winnipeg saw slight MoM declines. In Toronto, home sales remain roughly 25% below pre-pandemic levels, and condo values continue to face the most significant downward pressure due to elevated inventory and strained affordability. Vancouver’s modest rebound in resales did little to offset broader affordability challenges, which continue to weigh on home values. Calgary remains among the most active markets nationally, supported by strong population growth and increased supply from new construction.

Buyer Hesitation Persists While Sellers Wait for Stronger Prices

Many buyers remain cautious about the market despite lower borrowing costs. CREA notes that the combination of economic uncertainty and stretched affordability continues to slow decision-making in high-priced regions. Sellers are also acting more selectively. Owners who purchased or renovated during the pandemic peak are reluctant to accept lower valuations, and some are opting to wait until price trends show clearer momentum. Households nearing retirement are weighing whether to downsize now or delay in hopes of improved values. At the same time, financial planners across the country warn that prolonged delays can create financial pressure on homeowners carrying higher debt loads.

More Active Spring Market Expected as Interest Rates Trend Lower

CREA expects broader momentum to build into early 2026 as falling mortgage rates filter through qualification and purchasing power. Changes in interest rates tend to influence behaviour with a delay, and many buyers are still repositioning after several years of elevated borrowing costs. Markets with persistent supply shortages, including many regions of Quebec, may continue to see upward price pressure; meanwhile, high-inventory areas in Ontario and BC could experience slower stabilization through winter.

Lower Mortgage Rates Improve Qualification for Homebuyers and Homeowners

Lower mortgage rates are improving qualification and easing monthly payment pressure. For homebuyers, recent declines in both fixed and variable rates strengthen purchasing power heading into the spring market. For renewers, softer fixed-rate pricing reduces the severity of payment shocks, especially for borrowers with higher-rate mortgages maturing. For those looking to refinance, lower borrowing costs support improved stress-test qualification and broaden the options for equity takeouts, consolidations, or increases in amortization. 

---

National Rents Down 2.2% YoY as Demand Hits Multi-Year Lows

According to the November 2025 Rentals.ca Rent Report, asking rents averaged $2,105 in October, falling 2.2% YoY and marking the 13th straight annual decline. The pace of decline softened, with October posting the smallest annual drop in nearly a year. Renter demand continued to weaken for the 3rd consecutive month, setting the stage for 1 of the slowest winter rental periods in recent years. Rents also fell 0.9% MoM to an 8-month low, while the 3-month average slipped 0.3%.

Only 9 Canadian cities recorded rent growth above 3%. Kingston led with a 21.6% YoY increase to $2,391. Longueuil grew 9.8% YoY, followed by Brantford at 7.1% and Windsor at 6%. The sharpest declines occurred in Cote Saint-Luc at 19.4%, driven by changes in listing composition, as well as in several BC and Ontario markets, such as Coquitlam, East York, and New Westminster.

Shared accommodation rents across BC, Alberta, Ontario, and Quebec fell 8.1% YoY to $920, marking 11 straight months of annual declines. BC dropped 10.0% YoY, Alberta fell 7.9%, Ontario declined 6.6%, and Quebec decreased 4.7%. Vancouver saw the steepest YoY drop among major cities at 16.7%. Calgary fell 9.5%. Toronto posted a slight 1.4% YoY increase, while Ottawa rose 19.1% due to new co-living supply.

Purpose-Built Rentals Show More Stability as Studios and Condos Lead Declines

Purpose-built apartment rents decreased just 0.7% YoY to $2,085, making them the most stable segment nationally. Condo rents dropped 4.3% YoY, and other secondary rentals fell 4.7%. 1-bedroom units posted the most significant annual decline at 3.4% to $1,822, while studios dropped 1.5%. 4-plus-bedroom units decreased by 2.5% YoY. 3-bedroom rentals were the most stable, down 0.2% YoY to $2,539. Purpose-built 3-bedrooms increased 3.5% YoY to $2,767, while studio condos fell sharply by 14.2% YoY to $1,609.

Western Provinces Lead Declines While Praries See Rent Growth

Combined condo and purpose-built rents fell 1.3% YoY nationally. BC recorded the steepest annual decline at 5.8%, followed by Alberta at 5.3%. Ontario rents fell 2.2% YoY, Quebec dropped 1.4%, and Nova Scotia edged down 0.2%. Saskatchewan and Manitoba were the only provinces with annual increases, both up 1.8%. Over the last 2 years, BC and Ontario rents have fallen by 9.6% and 7.5%, respectively, while Saskatchewan rents have risen by 24%.

Affordability Patterns Split Regions as Vancouver and Toronto Hit Multi-Year Lows in Rental Prices

All major cities recorded annual declines. Vancouver fell 7.4% YoY to $2,728, reaching a 43-month low. Calgary dropped 7.2% YoY to $1,851. Toronto rents decreased 3.3% YoY to $2,551, reaching a 40-month low after 21 straight months of annual declines. Edmonton rents fell 3.4% YoY. Ottawa and Montreal saw milder decreases of 1.9% and 1.6%. Toronto’s 2-bedroom units fell 7.4% YoY, while Calgary saw a 7.1% decline for 3-bedrooms and a 6.8% decline for 1- and 2-bedroom units.

North Vancouver remained the most expensive market at $3,011. Other high-priced cities included Richmond, Oakville, North York, and Coquitlam. 9 of the 25 least expensive cities were in Alberta, with Lloydminster, Medicine Hat, Fort McMurray, and Red Deer all below $1,400. Saskatchewan also remained affordable, led by Regina at $1,413 and Saskatoon at $1,454. In Central Canada, Quebec City and Winnipeg were the lowest-priced major markets.

How Lower Rents Affect Homeowners 

For renters, slower declines signal that the national correction may be moderating, although demand remains weak heading into winter. Landlords in BC and Alberta continue to face the steepest adjustments, especially in studio and 1-bedroom units, while Saskatchewan and Manitoba remain more resilient. For mortgage borrowers, easing rental conditions can help soften shelter inflation and influence the Bank of Canada’s future decisions.

Canada Market Rents Summary

The average rent in Canada was $2,094 for the month of October 2025, which decreased by 1.3% on a year-over-year basis.

The average rent for a bachelor apartment in Canada was $1,612 for the month of October 2025, which decreased by 1.4% on a year-over-year basis.

The average rent for a 1-bedroom apartment in Canada was $1,863 for the month of October 2025, which decreased by 3.1% on a year-over-year basis.

The average rent for a 2-bedroom apartment in Canada was $2,272 for the month of October 2025, which decreased by 1.6% on a year-over-year basis.

The average rent for a 3-bedroom apartment in Canada was $1,863 for the month of October 2025, which decreased by 1.6% 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 $509.35 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

Frequently Asked Questions on Canadian Housing Market Outlook for 2025

---

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.

---