Canada Housing Market Overview 2026

Canada had total monthly transactions of 35,834 in April 2025 which was a 1-month decrease of 0.10% or a 12-month decrease of 7.50%. While the average home price saw a 1-month increase of 0.20% as it increased to $679,886, the 12-month change was a decrease of 3.90%. The benchmark home price saw decreases with a 1-month decrease of 0.70% and 12-month decrease of 3.60% as it hit $701,900.

Average home prices

The average home price in Canada was $679,886 in April 2025. These are the average home prices across the provinces:

Province Average Home Price
British Columbia $942,884
Ontario $859,645
Quebec $539,667
Alberta $525,135
Nova Scotia $477,925
Prince Edward Island $417,794
Manitoba $403,587
Saskatchewan $345,364
Newfoundland and Labrador $326,741

Benchmark home prices

The benchmark home price in Canada is $701,900. This chart breaks down the benchmark home prices across Canada:

Province Benchmark Home Price
British Columbia $968,600
Ontario $812,500
Quebec $525,900
Alberta $523,400
Nova Scotia $430,400
Prince Edward Island $364,600
Saskatchewan $360,500
New Brunswick $325,600
Newfoundland and Labrador $310,900

Home price data is from the Canadian Real Estate Association (CREA)

Factors affecting the Canadian housing market

Several forces shape housing prices and activity across Canada:

  • Interest rates — The Bank of Canada’s policy rate directly influences mortgage costs. When rates drop, borrowing becomes cheaper and demand tends to increase, pushing prices up. Rising rates have the opposite effect, as seen during the 2022-2023 tightening cycle.
  • Immigration and population growth — Canada’s ambitious immigration targets add hundreds of thousands of new residents each year, increasing demand for housing particularly in major urban centres like Toronto, Vancouver, and Montreal.
  • Housing supply — Construction of new homes has not kept pace with population growth in many markets. Zoning restrictions, labour shortages, and rising construction costs all limit supply.
  • Government policy — Federal and provincial policies such as the foreign buyer ban, stress test rules, first-time buyer incentives, and changes to capital gains taxes all influence market activity.

Housing affordability in Canada

Housing affordability remains one of the most pressing issues for Canadians. The ratio of home prices to household income has reached historic highs in several provinces, particularly in British Columbia and Ontario.

To understand what you can afford, use our mortgage affordability calculator which factors in your income, debts, and current interest rates. You can also check our income to afford home calculator to see the salary needed to purchase a home at different price points.

Beyond the purchase price, remember to account for additional costs such as land transfer taxes, legal fees, and home inspection costs. Use our mortgage calculator to estimate your monthly payments and plan your home buying budget accordingly.

Average home prices by property type

National average home prices vary significantly by property type. The following table shows approximate average prices across Canada based on CREA data:

Property Type Average Price Range
Single-Family Detached $850,000–$900,000
Semi-Detached $650,000–$700,000
Townhouse / Row $550,000–$600,000
Condominium Apartment $400,000–$450,000

Detached homes remain the most expensive property type nationally, while condominiums offer the most accessible price points for first-time buyers. These figures are national averages — actual prices vary enormously between markets. A detached home in Toronto or Vancouver can cost three to four times the Prairie equivalent.

Average home prices by major city

Housing prices in Canada are highly concentrated in a few major urban centres. The following table compares average home prices across key markets:

City Average Home Price Benchmark Price
Vancouver (GVA) $1,165,300 $1,099,200
Toronto (GTA) $1,022,143 $1,065,000
Ottawa $660,000 $610,000
Montreal (CMA) $625,000 N/A
Calgary $616,686 $582,900
Halifax $530,000 $430,000
Edmonton $464,000 N/A
Winnipeg $380,000 $355,000

For detailed market data, visit our city-specific housing market pages: Toronto, Vancouver, Calgary, Edmonton, and Montreal.

Beyond average prices, several indicators provide a clearer picture of whether conditions favour buyers or sellers:

  • Months of inventory — Measures how long it would take to sell all current listings at the current pace of sales. Below four months generally indicates a seller’s market; above six months signals a buyer’s market.
  • Sales-to-new-listings ratio (SNLR) — A ratio above 60% indicates a seller’s market, between 40% and 60% signals a balanced market, and below 40% points to a buyer’s market.
  • Days on market (DOM) — The average time a property takes to sell. Lower DOM signals higher demand.
  • Absorption rate — The rate at which available homes are sold in a given time period, helping gauge the speed of the market.

Nationally, inventory levels have been rising through 2025, with months of supply trending above historical averages in several markets. Markets in British Columbia and Ontario have seen the largest increases in inventory, giving buyers more choice and negotiating power than they have had in several years.

Regional market comparison

Canada’s housing market is best understood at the regional level. Conditions vary dramatically from coast to coast.

Region Market Conditions Price Trend Affordability Inventory
British Columbia Buyer’s / Balanced Stable to declining Very low High
Ontario (GTA) Balanced Stable to declining Low Elevated
Prairies (AB, SK, MB) Seller’s to balanced Rising Moderate to high Low to moderate
Quebec Seller’s Rising Moderate Low
Atlantic Canada Balanced to seller’s Stable Moderate Moderate

The Prairies and Quebec have seen the strongest price growth in recent years, buoyed by interprovincial migration and relative affordability. British Columbia and Ontario, while still the most expensive markets, have experienced price softening amid higher inventory and reduced demand.

Government housing policies in Canada

Federal and provincial governments have implemented several policies that significantly affect the housing market:

Mortgage stress test

All federally regulated lenders require borrowers to qualify at the greater of their contracted rate plus 2% or the Bank of Canada’s qualifying rate (currently 5.25%). This limits how much Canadians can borrow and is designed to ensure borrowers can handle rate increases. Use our mortgage qualification calculator or mortgage stress test calculator to see how this affects your borrowing power.

Foreign buyer ban

The Prohibition on the Purchase of Residential Property by Non-Canadians Act, originally effective January 1, 2023, restricts non-Canadians from purchasing residential property in Census Metropolitan Areas. The ban has been extended through January 1, 2027.

First Home Savings Account (FHSA)

Introduced in 2023, the FHSA lets first-time home buyers save up to $8,000 per year (up to a $40,000 lifetime limit) in a tax-advantaged account. Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying home purchase are tax-free (like a TFSA). Learn more with our FHSA calculator.

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan lets first-time buyers withdraw up to $60,000 from their RRSPs to fund a home purchase. This can be combined with the FHSA for even more tax-advantaged savings toward a down payment.

CMHC mortgage insurance

Buyers with less than 20% down payment must purchase mortgage default insurance through CMHC, Sagen, or Canada Guaranty. Insurance premiums range from 2.8% to 4.0% of the mortgage amount depending on the down payment size. Use our mortgage insurance calculator to estimate your premiums.

Provincial policies

Individual provinces levy their own property transfer taxes and have additional regulations. Notable examples include British Columbia’s foreign buyer tax (20%) and speculation tax, Ontario’s non-resident speculation tax, and Quebec’s welcome tax (droits de mutation). See our land transfer tax calculator for province-specific calculations.

Useful housing calculators

Planning to enter the Canadian housing market? These tools can help you prepare: