Canadian Housing Market Outlook 2026

A Delayed Spring Finally Lifts Canadian Home Sales

According to the Canadian Real Estate Association (CREA) for May 2026, national home sales rose 5.5% month over month, the first meaningful gain of the year after a slow, hesitant start. The increase was broad-based but leaned heavily on Ontario, pulling the national average price back above $700,000 for the first time in 23 months to $702,079, up 1.5% from a year ago. The more reliable MLS Home Price Index, which strips out the effect of which homes happened to sell, tells a steadier story: it edged down just 0.1% from April and 4.1% year over year, the smallest annual decline of 2026. After months of waiting, the spring market looks to have simply arrived a few weeks late.

• Activity is still running below last year, down 5.1% on a non-seasonally adjusted basis from May 2025, so this is a market turning a corner rather than booming. The handoff into June, normally the busiest stretch of the year, gives the new momentum room to build.
• New listings dipped 1% from April, even as sales jumped, tightening the national sales-to-new-listings ratio (SNLR) to 49.2% from 46.2%. That sits in balanced territory and points to buyers and sellers meeting in the middle, with days on market shortening and the gap between asking and selling prices narrowing.
• Inventory eased to 4.8 months from 5.1 months earlier in the year, just below the long-term average of five. Prices remain under year-ago levels in British Columbia, Alberta and Ontario, while much of Quebec, Atlantic Canada and Northern Ontario now offer sellers firmer footing and buyers fewer bargains.

The Bank of Canada’s decision to hold its policy rate at 2.25% on June 10 has steadied borrowing costs heading into summer, even as fixed rates take their cue from volatile bond yields. Buyers re-entering a stabilizing market can compare current mortgage rates, connect with nesto mortgage experts to get pre-approved, and see how the national turnaround helps their mortgage strategy.

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Canadian Housing Market Highlights

• The average selling price of a home in Canada decreased by 4.1% year-over-year to $667,700 in May.
• The average selling price of a single-family home in Canada decreased by 3.7% year-over-year to $744,100 in May.
• The average selling price of a townhouse/multiplex in Canada decreased by 5.2% year-over-year to $604,400 in May.
• The average selling price of a condo in Canada decreased by 6.6% year-over-year to $464,900 in May.
• The average rent in Canada decreased by 4.7% year-over-year to $2,029 for May. 
• June 18, 2026: Today’s lowest mortgage rate in Canada is 4.09% 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 May was $667,700, and it decreased by 4.1% compared to a year ago.

CREA also reported a sales-to-new-listings ratio (SNLR) of 49%, indicating Balanced market conditions nationally for May.

Composite Home Prices

Single-family Home Prices

Townhouse and Multiplex Prices

Condo Prices

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Record Apartment Completions Meet a Shrinking Population

According to the National Rental Report for June 2026, the average asking rent across Canada eased to $2,029 in May, down 4.7% YoY. That marks 20 straight months of annual declines and leaves rents 7.8% below the May 2024 peak of $2,202. The forces behind the slide are unusually clear: a record wave of purpose-built apartments is completing just as population growth stalls, with weaker youth employment and lower immigration thinning out the pool of new renters. Heading into what is normally the busiest leasing stretch of the year, supply is winning. 

• The annual drop steepened slightly from April, when rents averaged $2,027, a reminder that the late-spring demand bump landlords usually count on has yet to arrive. Rents are still 22% above their April 2021 pandemic low, so this is a normalization, not a collapse. 
• British Columbia is leading the cooldown, with purpose-built apartment and condo rents off 5.7% over the past year, roughly a point faster than the national pace. The province has now slipped from its long-held spot as the country’s most expensive for asking rents. 
• Vancouver rents have fallen year-over-year for 30 consecutive months and sit about a fifth below their September 2023 high, a softening that traces directly to the glut of investor-owned condos that could not sell and have flowed into the rental pool instead. 

The same condo oversupply pressuring rents in Vancouver, Calgary and Toronto is quietly handing renters their best negotiating position in years, and it gives would-be buyers a clearer read on carrying costs before they commit. With the Bank of Canada holding its policy rate at 2.25%, anyone weighing renting versus owning can compare current mortgage rates, connect with nesto mortgage experts to run the numbers, and see how falling rents are reshaping affordability. 

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Canada Market Rents Snapshot

The average rent in Canada was $2,029 for the month of May, which decreased by 4.7% year over year.

The average rent for a 1-bedroom apartment in Canada was $1,778 for the month of May, which decreased by 4.2% year over year.

The average rent for a 2-bedroom apartment in Canada was $2,160 for the month of May, which decreased by 2.9% year over year.

Rental Price Changes by City

Rank	City	Total Average	1 Bedroom	2 Bedrooms	Year-over-Year Change
1	North Vancouver	$2,927	$2,445	$3,302	−7.7%
2	Vancouver	$2,712	$2,385	$3,330	−0.8%
3	Kanata	$2,543	$2,277	$2,812	3.30%
4	North York	$2,520	$2,136	$2,669	−1.4%
5	Toronto	$2,512	$2,212	$2,907	−0.9%
6	Coquitlam	$2,476	$2,128	$2,709	−6.6%
7	Oakville	$2,449	$2,224	$2,631	−10.3%
8	Burnaby	$2,446	$2,115	$2,727	−7.7%
9	Etobicoke	$2,431	$2,082	$2,651	−3.3%
10	Burlington	$2,384	$2,118	$2,465	−4.7%
11	Vaughan	$2,342	$2,065	$2,569	−3.2%
12	Mississauga	$2,335	$2,052	$2,448	−5.8%
13	Halifax	$2,319	$2,064	$2,570	−2.0%
14	Langley	$2,286	$1,975	$2,477	−1.1%
15	Victoria	$2,257	$2,009	$2,598	−3.9%
16	Brampton	$2,224	$1,935	$2,291	1.20%
17	Scarborough	$2,194	$1,868	$2,307	−9.1%
18	Guelph	$2,194	$1,910	$2,255	−3.4%
19	Ajax	$2,193	$1,902	$2,244	3.90%
20	Kingston	$2,179	$1,926	$2,297	10.20%
21	Barrie	$2,143	$1,918	$2,150	−3.5%
22	Ottawa	$2,140	$1,949	$2,453	−4.1%
23	East York	$2,138	$1,851	$2,345	−7.7%
24	Surrey	$2,135	$1,812	$2,249	−4.4%
25	New Westminster	$2,132	$1,892	$2,641	−4.6%
26	Waterloo	$2,106	$1,957	$2,265	−4.4%
27	Kelowna	$2,093	$1,786	$2,244	−3.7%
28	Laval	$2,063	$1,706	$2,349	11.20%
29	Cambridge	$2,062	$1,820	$2,166	−1.5%
30	Greater Sudbury	$2,043	$1,793	$2,150	−13.1%
31	Nanaimo	$2,027	$1,844	$2,244	3.10%
32	Kamloops	$2,009	$1,879	$2,113	−1.3%
33	Peterborough	$1,994	$1,751	$1,979	−0.8%
34	Airdrie	$1,991	$1,469	$1,794	1.30%
35	Hamilton	$1,989	$1,712	$2,318	10.10%
36	Montreal	$1,968	$1,789	$2,312	2.50%
37	Brossard	$1,964	$1,764	$2,114	−4.6%
38	Oshawa	$1,959	$1,737	$2,025	−2.5%
39	Brantford	$1,924	$1,791	$2,051	−0.8%
40	London	$1,917	$1,665	$2,050	−3.5%
41	Niagara Falls	$1,887	$1,660	$2,026	−5.9%
42	Calgary	$1,883	$1,534	$1,856	−4.5%
43	Kitchener	$1,879	$1,687	$2,041	−8.1%
44	St. Catharines	$1,865	$1,652	$1,942	−1.5%
45	Welland	$1,845	$1,619	$2,016	8.50%
46	Gatineau	$1,800	$1,617	$1,881	−9.8%
47	Côte Saint-Luc	$1,783	$1,485	$2,029	−13.2%
48	Windsor	$1,715	$1,522	$1,921	−1.3%
49	Winnipeg	$1,679	$1,469	$1,789	1.50%
50	Sarnia	$1,661	$1,476	$1,752	−4.6%
51	Edmonton	$1,605	$1,287	$1,641	−2.3%
52	Saskatoon	$1,572	$1,361	$1,590	3.40%
53	Red Deer	$1,561	$1,333	$1,507	−2.0%
54	Quebec City	$1,522	$1,295	$1,692	1.90%
55	Lethbridge	$1,495	$1,306	$1,518	−5.9%
56	Regina	$1,471	$1,322	$1,525	−3.2%
57	Fort McMurray	$1,384	$1,169	$1,414	−4.8%
58	Medicine Hat	$1,330	$1,197	$1,348	−3.2%
59	Lloydminster	$1,287	$1,055	$1,378	8.10%
60	St. John's	$1,139	$1,065	$1,253	4.70%

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 $530.91 per month on nesto’s lowest fixed 5-year rate at 4.09% and $495.28 per month on nesto’s lowest adjustable 5-year rate at 3.40%.

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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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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