The State of Canadian Housing

A data-driven look at the purchase and rental markets in mid-2025, revealing a nation of diverging trends and deepening affordability challenges.

National Market at a Glance

National averages mask a complex reality. While the average sale price shows a slight dip, the benchmark 'typical' home value has fallen more significantly, signaling a broad market cooling. Meanwhile, the rental market offers a fragile, policy-induced reprieve.

$691,643

Average Sale Price

-0.7% YoY

$698,000

Benchmark Home Price (HPI)

-4.5% YoY

4.7

Months of Inventory

Balanced

$2,125

Average Asking Rent

-2.7% YoY

Price Correction by Property Type (YoY Change)

The most affordable housing segments, like condos, are experiencing the steepest price declines. This points to significant pressure on first-time homebuyers and potential oversupply from investors.

The Great Canadian Housing Divergence

Canada's housing market has fractured. High-cost provinces like BC and Ontario are cooling, while affordability and migration fuel record growth in the Prairies and Atlantic Canada. This creates a challenging environment for national policy.

Provincial Benchmark Home Price Growth (YoY)

Tale of the Cities: Purchase & Rental Markets

From Vancouver's peak prices to Edmonton's relative affordability, Canada's urban centres showcase the extremes of the housing landscape. Explore the cost to buy and rent in key metropolitan areas.

Median Price: Condo Apartments (Q2 2025)

The entry-level condo market shows significant price corrections in Toronto and Calgary, while Edmonton posts strong growth, highlighting the east-west affordability shift.

Average Rent: 1-Bedroom Apt (June 2025)

While still expensive, major rental markets in Vancouver and Toronto have seen rents soften due to policy changes affecting demand. Montreal remains a clear outlier in affordability.

The Affordability Crisis Quantified

The core of the issue is a fundamental disconnect between housing costs and household incomes. In cities like Vancouver and Toronto, the income required to buy a home is more than double the median income earned, creating a massive financial barrier.

The Income Gap: Required vs. Median Income

This chart reveals the stark reality for aspiring homeowners. A positive bar shows an income surplus, making homeownership feasible. A negative bar shows a shortfall, locking many out of the market entirely.

The Two Barriers to Homeownership

This isn't just about high prices; it's a systemic lock-out. These two intertwined barriers explain why market activity is low despite clear demand.

Qualification Barrier

Median-income households in cities like Toronto and Vancouver simply cannot qualify for a large enough mortgage to purchase an average-priced home. It's a hard stop before they can even make an offer.

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Cash-Flow Barrier

Even if they could get a loan, the monthly carrying costs (mortgage, taxes, utilities) would consume an unsustainable 85-96% of their income, making daily life financially impossible.