The average Canadian house price declined slightly in 2023, after four years of consecutive growth. The average house price stood at ******* Canadian dollars in 2023 and was forecast to reach ******* Canadian dollars by 2026. Home sales on the rise The number of housing units sold is also set to increase over the two-year period. From ******* units sold, the annual number of home sales in the country is expected to rise to ******* in 2025. British Columbia and Ontario have traditionally been housing markets with prices above the Canadian average, and both are set to witness an increase in sales in 2025. How did Canadians feel about the future development of house prices? When it comes to consumer confidence in the performance of the real estate market in the next six months, Canadian consumers in 2024 mostly expected that the market would go up. A slightly lower share of the respondents believed real estate prices would remain the same.

Home affordability has worsened substantially in Canada since 2021. In January 2023, the monthly single-family mortgage payment amounted to approximately 66 percent of a household's income, on average. In 2021, when affordability had improved slightly, the average mortgage payment constituted 47 percent of a household's income.

Average House Prices in Canada decreased to 688600 CAD in June from 690200 CAD in May of 2025. This dataset includes a chart with historical data for Canada Average House Prices.

The average resale house price in Canada was forecast to reach nearly ******* Canadian dollars in 2026, according to a January forecast. In 2024, house prices increased after falling for the first time since 2019. One of the reasons for the price correction was the notable drop in transaction activity. Housing transactions picked up in 2024 and are expected to continue to grow until 2026. British Columbia, which is the most expensive province for housing, is projected to see the average house price reach *** million Canadian dollars in 2026. Affordability in Vancouver Vancouver is the most populous city in British Columbia and is also infamously expensive for housing. In 2023, the city topped the ranking for least affordable housing market in Canada, with the average homeownership cost outweighing the average household income. There are a multitude of reasons for this, but most residents believe that foreigners investing in the market cause the high housing prices. Victoria housing market The capital of British Columbia is Victoria, where housing prices are also very high. The price of a single family home in Victoria's most expensive suburb, Oak Bay was *** million Canadian dollars in 2024.

The house price to rent ratio in Canada decreased 2023 onwards, after peaking in 2022. In the third quarter of 2024, the index amounted to 134.8 index points, down from 144.1 index points in the third quarter of 2023, when the highest value was recorded. The index tracks the development of house prices relative to rents, with 2015 chosen as a base year with an index value of 2015. This ratio was calculated by dividing median house prices by median annual rents. A ratio of 140 percent means that the gap between median house prices and median annual rents widened by 40 percent since 2015.

The house price ratio in Canada peaked in the second quarter of 2022, followed by three quarters of decline and a slight rebound in 2023. The ratio measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. Canada's index score in the third quarter of 2024 amounted to 136.8, which means that house price growth has outpaced income growth by almost 37 percent since 2015. Canadian home prices are fallingAfter several years of steady increase, Canadian house prices were forecast to fall slightly in 2023. This was also the case in British Columbia, which has consistently been the most expensive province for housing. This is likely because Vancouver, Canada's most expensive city, is located there. Canadian incomes on the riseIncomes in Canada have steadily risen since 2000 and show no signs of slowing down in the near future. This should improve housing affordability, as long as home price growth slows down.

Investment pouring into residential housing construction has benefited apartment and condominium construction activity in Canada in recent years. Immigration into Canada has spurred record population growth, fueling a deepening housing crisis. In major urban centres, demand for housing units has exceeded the supply for years, inciting investment in retrofits and multistory apartment dwellings. Apartment contractors have been vital in filling the gaps in housing, with a low-interest environment and chronically low vacancy rates enticing investors. The imbalance between housing supply and demand kept investors bullish on apartments through COVID-19 pandemic uncertainty, supporting growth. Still, the pandemic's disruption to global supply chains didn't spare contractors, with equipment and material costs reaching unprecedented highs. Particularly through 2021 and 2022, materials price and wage inflation pushed up contractors rates, contributing to industry revenue growth. While the year following saw slower building construction price inflation, high demand has kept the price level from falling. In all, industry-wide revenue has been rising at an expected CAGR of 4.2% over the past five years, totaling an estimated $62.3 billion in 2025, when revenue will rise an expected 2.6%. Beginning in 2022, the Bank of Canada steadily raised or maintained interest rates to combat inflation. Higher interest rates made developers more hesitant to invest in projects, driving up costs for builders and impeding profit. In 2024, however, the Bank of Canada began cutting interest rates, continuing the policy into 2025. Contractors will navigate a challenging landscape over the coming years. While interest rates will continue to fall, they will not reach pandemic lows. Labour shortages and elevated costs will also strain contractors' capacity. These challenges will face the broader construction sector, pushing federal and provincial governments to introduce infrastructure and workforce development programs. Over the next five years, apartment and condominium construction revenue is expected to expand at a CAGR of 1.9% to reach $68.4 billion in 2030.

The share of mortgages in arrears in Canada decreased for the third year in a row in 2022, reaching tan all-time low. As of December 2022, the rate of mortgage arrears was 0.15 percent, down from 0.42 percent in 2009, when the highest rate was observed. Among the different provinces, the arrears rate was the highest in Saskatchewan at 0.63 percent in December 2023.

When it comes to consumer confidence in the performance of the real estate market in the next six months, Canadian consumers were mostly expecting that it increases. About 44 percent of respondents believed that the value of real estate in their neighborhood would increase in the next six months, according to a survey conducted between January 5 and January 19, 2024.

Toronto C12 was the area with the most expensive condos in Toronto, Canada, in the fourth quarter of 2023. The median sales price in this area, which includes the neighborhoods York Mills, St.Andrew - Windfields, Bridle Path, Sunnybrook, and York Mills West was close to 2.7 million Canadian dollars. C09, where Moore Park and Rosedale are situated, is another of Toronto's upscale areas, with condo prices at around 990,000 Canadian dollars.

The average sales price in Greater Toronto, Canada, increased for all property types except condos in 2023. Buying a condo in December 2023 would cost a home buyer about 680,000 Canadian dollars. Toronto is Canada's most populous city and the country's most important economic center. It consists of 25 municipalities, including Toronto City, Mississauga, Brampton, and others.

The average sales price decreased for all property types in Greater Vancouver, Canada in 2023. Buying a condo as of January 2023 would cost a home buyer about 760,000 Canadian dollars. Greater Vancouver is one of Canada's most important economic centers. It consists of 21 municipalities, including Vancouver City, Surrey, Burnaby, Richmond, Coquitlam, and other.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

The average sale price of residential real estate in Oakville, which is part of the Greater Toronto Area, amounted to almost 1.7 million Canadian dollars in 2023. In Vancouver, a single family home cost about 1.5 million Canadian dollars. According to the forecast, many of the major markets are expected to see home prices increase slightly in 2024 in most markets.

Multifamily housing starts in 2023 fell slightly in comparison to the previous year. That year, construction starts in apartments, semi-detached homes, and rows reached 185,651 units. Ontario was the province with most of those construction starts. The volume of new home construction in Canada has fluctuated significantly in the past years.

Vancouver, Toronto, and Mississauga were the most expensive cities to rent a two-bedroom apartment in Canada in January 2024. In all three cities, the average two-bedroom rent exceeded 2,700 Canadian dollars and in Vancouver, it was as high as 3,831 Canadian dollars per month.

The Municipality of West Vancouver the most expensive area to rent a two-bedroom apartment in Metro Vancouver, Canada in 2023, with a median rent of 3,250 Canadian dollars. In comparison, the average for the metro stood at 2,000 Canadian dollars. Maple Ridge/Pitt Meadows, Surrey, and White Rock, on the other hand, were some of the most affordable areas. In Canada, Vancouver is the most expensive city for rental properties.The data is based on the results of an annual survey among owners, managers, and building superintendents and includes only apartments in privately initiated buildings with three or more rental units on the market for more than three months.

Downtown Montréal/Îles-des-Soeurs was the most expensive area to rent a two-bedroom apartment in Greater Montréal, Canada in 2023, with a median rent of 1,813 Canadian dollars. In comparison, the average for Greater Montréal stood at 980 Canadian dollars. Pont-Viau and Montréal-Nord, on the other hand, were the most affordable areas. The data is based on the results of an annual survey among owners, managers, and building superintendents and includes only apartments in privately initiated buildings with three or more rental units on the market for more than three months.

Ambulatory healthcare was the type of building with the highest construction costs in Ontario (Canada) in 2023. The cost of that type of building ranged from 7,110 to 8,750 Canadian dollars per square meter. Townhouses with mid-end specifications were, along with warehouses, among the cheapest buildings to construct, even though the townhouse sale price in Canada was much higher in 2023 than in a decade earlier. On the other side of the residential spectrum, the construction cost of high-rise buildings with mid-end specifications could reach up to 5,370 Canadian dollars per square meter. The housing sector in Ontario The fast population growth in Toronto, the main city in Ontario, has put pressure on its housing market. From 2001 to 2022, the number of people living in Canada’s largest city increased by over 37 percent. During the past years, house prices in Ontario rose at a similarly fast pace. Combined, these elements signal a strong demand for homes in Toronto and Ontario as a whole. The construction sector has responded to this trend: In 2022, most housing starts in Canada took place in the province of Ontario. That same year, EllisDon Corporation, with headquarters in Mississauga (Ontario), was the second-largest contractor in Canada. One of its largest residential/mixed-use projects under development is the 489-539 King St. West Development, in Toronto. Construction cost in North America Building construction costs in Quebec, the second most populous province in Canada after Ontario, had a similar cost range: Ambulatory healthcare buildings were the most expensive, and warehouses were the cheapest to build. However, enclosed malls and higher education buildings were significantly more expensive in Quebec than in Ontario. Across the border, the cities with the highest residential construction costs in the U.S. were San Francisco for multi-family housing, and New York City for single-family housing. Meanwhile, Los Angeles, San Francisco, and New York had the highest hotel construction costs in the U.S.

Toronto Central and Toronto North were the most expensive areas to rent a two-bedroom apartment in Greater Toronto, Canada in 2023, with a median rent of 2,550 and 2,300 Canadian dollars, respectively. In comparison, the average for the city stood at 1,750 Canadian dollars. Bradford/West Gwillimbury/New Tecumseth, in comparison, was the most affordable area with a monthly rent of 1,101 Canadian dollars. The data is based on the results of an annual survey among owners, managers, and building superintendents and includes only apartments in privately initiated buildings with three or more rental units on the market for more than three months.