Home affordability has worsened substantially in Canada since 2021. In the first quarter of 2025, the monthly single-family mortgage payment amounted to approximately 61.7 percent of a household's income, on average. In 2021, when affordability had improved slightly, the average mortgage payment constituted 46.5 percent of a household's income.

Residential real estate prices are forecast to increase across all markets in 2025. Greater Vancouver, BC, one of Canada's most expensive markets for housing, recorded house price growth of 12.5 percent.

The rental price index in Canada has soared since 2002, reaching an all-time high in 2025. In the second quarter the index measured 135.8 index points, which was a 35.8 percent increase since the base year, 2015. The rent paid on average by households in a certain territory. These figures are seasonally adjusted, which means that the effect of seasonal variations was eliminated from the data.

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.

As of the first quarter of 2025, approximately one in four mortgage holders in Canada was between the age of 45 and 54. In comparison, people under the age of 25 with mortgage loan represented just 0.72 percent of the total.

The Canada Residential Real Estate Market, valued at approximately $1.2 trillion CAD in 2025, is projected to experience steady growth, with a Compound Annual Growth Rate (CAGR) of 3.20% from 2025 to 2033. This growth is driven by several key factors, including a growing population, particularly in urban centers like Toronto and Vancouver, increasing household incomes, and persistently low interest rates (though this factor is subject to change based on economic conditions). Furthermore, a continued preference for homeownership among Canadians, coupled with limited housing supply in many desirable locations, contributes to sustained demand. While challenges such as affordability concerns and potential interest rate hikes pose restraints, strong immigration and economic fundamentals underpin the positive outlook for the market. The market is segmented by property type (single-family homes, condominiums, townhouses), location (urban, suburban, rural), and price range, offering diverse investment opportunities for developers and investors alike. Major players like Aquilini Development, Century 21 Canada, Bosa Properties, and Brookfield Asset Management are shaping the market landscape through significant projects and investments. The forecast period (2025-2033) anticipates a gradual increase in market value, influenced by both economic conditions and governmental policies affecting housing affordability and construction. While fluctuations are expected, the long-term projections indicate consistent market expansion, driven by Canada's demographic trends and economic strength. Analyzing regional variations is crucial, as certain provinces and cities may experience more rapid growth than others, depending on local economic conditions, employment rates, and government regulations. Continuous monitoring of these factors is essential for accurate market forecasting and informed investment decisions. The projected market size in 2033, based on the provided CAGR, will represent a substantial increase in the total value of the Canadian residential real estate sector. Key drivers for this market are: Population Growth is the main driving factor, Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector. Potential restraints include: Housing Supply Shortage, Interest rates and Financing. Notable trends are: Immigration Policies are Driving the Market.

New home construction in the Canadian province of Ontario amounted to roughly 85,770 units in 2023. Those figures were much higher than the number of construction starts in Quebec. On a year-to-year basis, construction in both provinces had been increasing steadily between 2015 and 2021, but housing starts fell after that.

The Canadian residential construction market exhibits robust growth potential, driven by a consistently increasing population, urbanization trends, and government initiatives promoting affordable housing. The market, valued at approximately $100 billion CAD in 2025 (estimated based on provided CAGR and market size information), is projected to experience a Compound Annual Growth Rate (CAGR) exceeding 5% through 2033. This expansion is fueled by strong demand in major cities like Toronto, Vancouver, Calgary, and Montreal, where population density and economic activity are high. While rising material costs and labor shortages pose challenges, innovative construction techniques and technological advancements are mitigating these restraints to some extent. The market segmentation reveals a significant share for multi-family dwellings, reflecting the increasing preference for apartments and condos in urban centers. The leading players, including PCL Construction, EllisDon, and others, are strategically positioning themselves to capitalize on this growth, focusing on sustainable and efficient building practices. The forecast indicates continued expansion across diverse segments. Single-family home construction, while vital, will likely witness more moderate growth compared to the multi-family segment. Regional variations will persist, with larger metropolitan areas experiencing faster growth than smaller cities and rural areas. Government policies influencing mortgage rates, building permits, and environmental regulations will play a critical role in shaping market trajectories. The continued focus on sustainable construction, energy efficiency, and smart home technologies will further drive innovation and attract investment in the sector. However, sustained economic growth and stable interest rates are crucial to maintain this positive momentum. Ongoing monitoring of inflation and material prices will be vital for accurate forecasting. Recent developments include: September 2022: PCL Construction was awarded Kindred Resort - Keystone's first major development in River Run in 20 years. This USD 184 million, 321,000 square-foot mixed-use development, designed by OZ Architecture, will consist of 95 luxury ski-in/ski-out condominiums and a 107-key full-service hotel, all just steps away from the River Run Gondola at Keystone Ski Resort. The development also includes 25,000 square feet of commercial space for restaurants, retail, and amenities including a pool, spa, fitness center, ski club, and event space. Preliminary construction activities are underway to relocate utilities. Construction will continue year-round and is scheduled for completion in June 2025., January 2023: PCL Construction broke ground on Schnitzer West Living's luxury residential community, the Avant, in the Denver Tech Center. The Avant is situated on the corner of Greenwood Plaza Boulevard and East Caley Avenue. The property includes 337 highly curated for-rent residences, complete with modern amenities and a two-level indoor structured parking garage with a capacity for roughly 450 cars. Residents will enjoy commanding views of the surrounding mountains year-round from their homes and the property's outdoor pool and hot tub. The property is Schnitzer West's first multifamily residential building, bringing luxurious living experiences to Denver's Tech Center.. Notable trends are: Drop in Building Permits Due to High Interest Rates.

Ontario was the province expected to see the highest shortage of homes in Canada by 2030, according to a 2023 forecast. Based on the projected supply and housing demand, Canada is expected to experience a shortage of about *** million housing units by 2030. Ontario will account for approximate *** million of this housing gap.

Homebuilders have endured considerable volatility. Immigration into Canada has translated into unprecedented population growth, driving a deepening housing crisis. New housing starts haven't kept up with the population growth, making homebuilders more critical than ever to meet housing needs. Home shortages and changes in buying behaviour supported homebuilders during the COVID-19 pandemic. Still, the pandemic's disruption to global supply chains didn't spare contractors, with equipment and material costs reaching unprecedented highs. Interest rate hikes in 2022 and 2023 slowed new relevant housing construction, spurring apartment building construction as consumers increasingly sought out renting. Also, the First Time Homebuyer Incentive, which seemed like a potential boon to homebuilders, largely lacked success and was repealed. Industry-wide revenue has been declining at a CAGR of 0.1% over the past five years – totaling an estimated $29.7 billion in 2025 – when revenue will climb an estimated 2.7%. The Bank of Canada raising rates in 2022 and 2023 led to a massive slowdown for homebuilders, even as the Canadian government tried to ramp up the number of housing units. Higher interest rates make developers cautious about new projects, drive up construction costs for builders and push potential home buyers out of the market. The Bank of Canada has decreased rates in 2024 and 2025 for the first time since 2022, potentially providing a boost to homebuilders. Labour shortages for home builders have hiked wage costs and hindered profit. Homebuilders will enjoy solid growth over the next five years. Interest rate cuts and low housing supply will spur downstream homebuying activity. Still, labour shortages and material costs will continue to strain contractors' capacity. Such challenges will be complex for the broader construction sector, allowing federal and provincial governments to introduce programs focusing on workforce development and tech adoption. Government initiatives like the First-Time Home Buyers’ Tax Credit, the First Home Savings Account (FHSA) and the Home Buyers Plan (HBP) will support homebuilding. Homebuilders' revenue is forecast to expand at a CAGR of 2.0% to $32.8 billion through the end of 2030.

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.

Canada Manufactured Homes Market size was valued at USD 2.08 Billion in the year 2024, and it is expected to reach USD 2.85 Billion in 2032, at a CAGR of 4% over the forecast period of 2026 to 2032.

Key Market Drivers: Housing Affordability Crisis: The ongoing housing affordability crisis is the primary driver of Canada's manufactured home market. According to the Canadian Real Estate Association (CREA), the national average home price reached $716,100 in January 2024, up 7.6% year on year. According to the Canadian Manufactured Housing Institute (CMHI), manufactured homes are significantly less expensive than traditional site-built homes, with prices ranging from 30 to 50% lower.

Urbanization and Population Growth: Urbanization and population increase in Canada are pushing the manufactured house market by growing demand for low-cost, high-quality housing options. Rising land costs and housing shortages make manufactured homes an affordable option, promoting market growth.

The North American modular housing market, valued at $24.97 billion in 2025, is poised for robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 6.99% from 2025 to 2033. This expansion is driven by several key factors. Increasing demand for affordable housing, particularly in urban centers facing housing shortages, fuels the market's ascent. Furthermore, the inherent efficiency and sustainability of modular construction, leading to faster build times and reduced waste, are significant attractors for both developers and consumers. Government initiatives promoting sustainable building practices and affordable housing solutions further bolster market growth. The market is segmented by housing type, with single-family and multi-family units representing distinct but interconnected segments. The single-family segment currently holds a larger market share, reflecting established consumer preferences, but the multi-family segment is projected to experience faster growth due to increasing urbanization and rental demand. Leading companies like Skyline Corporation, Clayton Homes, and others are driving innovation and expansion within the industry, leveraging technological advancements to enhance construction methods and design capabilities. The preference for customizable designs and improved aesthetics is also contributing to rising adoption rates. Growth will likely be concentrated within the US, given its larger housing market and the increasing adoption of modular techniques. However, Canada and Mexico are expected to contribute to regional growth, though at potentially slower paces relative to the United States. Potential restraints include regulatory hurdles related to building codes and zoning regulations, as well as the perception of modular housing as less aesthetically pleasing compared to traditional construction. However, ongoing innovations in design and materials are mitigating these concerns, paving the way for sustained market expansion throughout the forecast period. The continued focus on sustainability, coupled with technological advancements and supportive government policies, suggests that the North American modular housing market will remain a dynamic and lucrative sector in the coming years. Recent developments include: April 2022: Clayton Homes, a national builder of both off-site and on-site homes, showed off its first single-section CrossMod home at the Manufactured Housing Institute's Congress & Expo. This gives another group of homebuyers and locations a new affordable housing option., January 2022: Volumetric Building Companies (VBC), one of the largest multifamily volumetric modular and components businesses in the United States, announced a merger with Polcom Group (Polcom), a premium steel modular building and custom furniture manufacturing conglomerate for the hospitality market. By combining VBC's innovative wood construction technology with Polcom's advanced steel modular system, the deal will change the way people build things. The Polycom merger comes right after VBC bought the assets of Katerra Inc., which included its offices and state-of-the-art manufacturing facility in Tracy, CA.. Notable trends are: Increase in Prefabricated Housing Market in North America.

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 4.0% over the past five years, totaling an estimated $61.6 billion in 2025, when revenue is set to rise an estimated 1.9%. 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, until holding rates steady amid tariff uncertainty. 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 1.1% to reach $65.2 billion in 2030.

The metropolitan area of Toronto had *** of the largest housing shortages between 2016 and 2022. Just in 2022, there were ******* housing completions less than new families were formed or registered in the Toronto. Meanwhile, the metro area of the city of Quebec saw more housing completions than families throughout that period, with the exception of 2021.

Interactive forecast of benchmark prices for detached houses, townhouses, and condo apartments in Metro Toronto over the next two years.

Interactive chart displaying benchmark and median prices for detached houses in the Greater Toronto Area, with data spanning 18 months and 10 years.

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.

An interactive chart showcasing completed Detached House and Condo Apartment pre-sales and new construction sales in the Metro Toronto area for the last three years, with a focus on the most recent month's data.

In 2024, there were more new home construction starts in Canada than in the previous year. Construction starts peaked in 2021, when there were ******* housing units whose construction started that year. Despite the restrictions imposed in Canada during the COVID-19 pandemic, the industry managed to continue operating, with increases in the number of housing starts in 2020 and 2021. How many homes are under development? In 2023, the number of housing units that were under construction in Canada was approximately ******** units. After a period of stagnation until 2016, the housing industry witnessed a significant surge in construction activity. Numerous factors are attributed to this rise, including the heightened demand for housing, an expanding economy that encouraged investment, and the response to the shortage of housing. How expensive are homes in Canada? In 2024, the average cost of a house in Canada was around ******* Canadian dollars. The average house price had increased that year by ****** Canadian dollars compared in 2024 compared to the previous year. The house price-to-income ratio in Canada increased slightly in the third quarter of 2024.