• Canada's economy is expected to grow slowly in 2026, as the following factors weigh on demand: geopolitical and trade uncertainty, significantly lower population growth, soft labour markets and modest income growth. Growth is projected to improve slowly in 2027 and 2028.
• Housing demand is projected to gain momentum while sales stay below historical averages and prices show only modest gains after falling in 2025.
• New home construction is set to decline through 2028 as developers face high costs, weaker demand and more unsold homes. Condominium starts will be especially weak. Rental projects will continue to drive new supply but will moderate over the forecast period.
• Rental markets are moving toward balance from an overall national perspective as new supply eases pressure and rent growth slows, giving renters more flexibility before buying a home.
• Regional housing markets vary significantly. Construction and home sales in Ontario and British Columbia will be weaker than their 10-year averages while, in the Prairies and Quebec, they will remain above their historical averages. Ontario is the only region expected to see price declines in 2026.

https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/market-reports/housing-market/housing-market-outlook