Canadian Housing Market Outlook 2025
Table of contents
National Market Report Summary
- The average selling price of a home in Canada decreased by 3.6% year-over-year to $701,900 in April 2025.
- The average selling price of a single-family home in Canada decreased by 3.4% year-over-year to $779,500 in April 2025.
- The average selling price of a townhouse/multiplex in Canada decreased by 3.9% year-over-year to $644,300 in April 2025.
- The average selling price of a condo in Canada decreased by 4.6% year-over-year to $501,200 in April 2025.
- The average rent in Canada decreased by 1.6% year-over-year to $2,116 for April 2025.
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Composite Home Prices
The average selling price of a home in Canada was $701,900 for the month of April 2025, that’s decreased by 0.7% compared to the previous month. On a year-over-year basis, Canadian home prices have decreased 3.6% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in Canada was $779,500 for the month of April 2025, that’s decreased by 0.5% compared to the previous month. On a year-over-year basis, single-family home prices in Canada have decreased by 3.4% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in Canada was $644,300 for the month of April 2025, that’s decreased by 0.7% compared to the previous month. On a year-over-year basis, the price of a townhouse in Canada has decreased by 3.9% over the last 12 months.
Condo Prices
The average selling price of a condo in Canada was $501,200 for the month of April 2025, that’s decreased by 0.9% compared to the previous month. On a year-over-year basis, the price of a condo in Canada has decreased 4.6% over the last 12 months.
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Canada Housing Market Summary
Data from the Canadian Real Estate Association (CREA) indicates that the benchmark price of resale residential homes sold across Canada in April 2025 was $701,900, and it decreased by 3.6% compared to a year ago.
CREA also reported a sales-to-new-listings ratio (SNLR) of 47%, indicating a balanced market nationally for April 2025.
Home Prices Slide Further in April Despite Sales Stability
According to the Canadian Real Estate Association (CREA) for April 2025, Canada’s housing market is undergoing a notable shift marked by falling prices and regionally mixed resale activity. National home resales edged down just 0.1% from March, suggesting that the steep sales drop from earlier this year may be levelling off. However, downward pressure on prices intensified, especially in Southern Ontario and British Columbia, as economic concerns and rising inventory continued to erode buyer confidence.
Trends Show Price Corrections Widening
Despite a pause in resale declines, prices across the country continued to drop. The national composite MLS Home Price Index (HPI) fell for the fifth straight month in April, down 1.2% month-over-month and 3.6% compared to April 2024. The impact was most pronounced in expensive markets such as Toronto, Hamilton, Vancouver, and the Fraser Valley.
- National resale activity: Down 0.1% from March
- National average home price: $679,866 (down 3.9% year-over-year)
- Active listings: 183,000 (up 14.3% YoY, but below long-term norms)
- National months of inventory: 5.1 (aligned with the long-term average)
Home Price Trends
In Southern Ontario, price corrections are broad and steep. The Toronto region’s composite MLS HPI has dropped 6.2% since December, including a 1% decline in April alone. London, Kitchener-Waterloo, Niagara, and Hamilton each posted month-over-month losses ranging from -6.5% to -7.7%. British Columbia markets are also weak, with Vancouver and Fraser Valley recording 2.8% declines over four months.
Condos are bearing the brunt of the correction. In Toronto, condo values have fallen 7.3% over the past year, while Vancouver’s condo segment is down 2% annually.
Market Demand and Inventory Levels
Supply-demand dynamics have shifted in buyers’ favour in several large urban markets. In Toronto, resale activity in April hit a 30-year low (excluding the COVID-19 lockdown), while new listings continued to rise, pushing inventory levels higher. Buyer leverage is growing, leading to steeper discounts and lengthier negotiations. Vancouver and Fraser Valley markets mirror these trends, with increased listings and stable sales volumes contributing to falling prices.
In contrast, regions such as Alberta, Saskatchewan, Manitoba, Quebec, and Atlantic Canada remain more balanced. Calgary saw sales momentum stall amid trade uncertainty, though price declines are still modest at -1.4% annually. Montreal held relatively firm, with prices for single-family homes and condos rising month-over-month in April.
Canada’s housing market continues to cool under global trade tensions and broader economic uncertainty. While some regions like Montreal and parts of the Prairies remain relatively resilient, the outlook for major urban centres in Ontario and BC remains weak in the near term. Elevated inventories and cautious buyer sentiment are expected to keep downward pressure on prices heading into summer.
Month-over-Month Expectations for the Canadian Housing Market
Transactions – Number of Sales
The number of sales in Canada was 35,834 during April 2025, that’s decreased by 0.1% compared to the previous month. On a year-over-year basis, sales in Canada have decreased by 7.5% over the last 12 months.
New Listings
The number of new listings in Canada was 76,605 during April 2025, that’s decreased by 1.0% compared to the previous month. On a year-over-year basis, new listings in Canada have increased by 5.2% over the last 12 months.
Real Estate Market
The sales-to-new-listings ratio (SNLR) in Canada was 47% during April 2025, indicating a balanced market. On a monthly basis, that’s increased by 0.9% compared to the previous month. Canada’s yearly sales to new listings ratio has decreased by 12.1% over the last 12 months.
The sales-to-new-listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market in which buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market.
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Annual Changes Composite Home Prices by Province
Annual Changes to the National Composite Home Prices
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Canadian Rent Prices Stabilize Amid Broad Regional Divergence
According to the May 2025 Rentals.ca and Urbanation Rent Report, Canada’s rental market continued its shift toward stabilization in April, even as average asking rents posted their 7th consecutive annual decline. The national average rent fell 2.8% year-over-year to $2,127, matching the drop seen in March. However, month-over-month rents edged up 0.4%, marking the second straight monthly increase and a 5-month high. While overall rental affordability has modestly improved compared to the peak in 2023, average asking rents remain 28% higher than during the pandemic low of April 2021.
Key Trends and National Highlights
- National average asking rent: $2,127 (↓ 2.8% YoY, ↑ 0.4% MoM)
- 3-month rent increase: 1.3%, highest since December 2023
- Purpose-built rentals: ↑ 0.9% MoM to $2,105 (↓ 0.9% YoY)
- Condo apartments: ↓ 5.2% YoY to $2,210
- Secondary rentals (houses/townhomes): ↓ 6.8% YoY to $2,166
Purpose-built apartments led the recovery in April, with rents for 3-bedroom units climbing 4.4% year-over-year to $2,757. Studio rents in the same category also saw modest growth, while 1- and 2-bedroom rents declined. In contrast, average rents for condo apartments fell across all unit types, reflecting reduced demand and increased supply.
Provincial Rent Shifts Reflect Mixed Conditions
Saskatchewan stood out as the top-performing province with a 4.1% annual increase in average apartment rents to $1,352, followed by Nova Scotia (+2.6%) and Manitoba (+0.6%). Ontario continued to lead declines, with average rents down 2.7% year-over-year to $2,338, despite a 0.5% uptick in March. British Columbia (-1.0%), Alberta (-1.8%), and Quebec (-1.7%) also saw annual drops. Alberta was the only province to see a month-over-month decline.
- Ontario 2-bedroom rent: ↓ 4.1% YoY to $2,563
- Nova Scotia 1-bedroom rent: ↑ 7.6% YoY to $2,031
- Saskatchewan 2-bedroom rent: ↑ 7.0% YoY to $1,495
- Manitoba 3-bedroom rent: ↓ 3.3% YoY to $1,988
City-Level Divergence Grows Sharper
Rental markets in Canada’s major cities continued to diverge. Calgary recorded the largest annual rent drop among large markets at -8.9% to $1,903, hitting a 25-month low. Toronto (-5.5%), Vancouver (-4.9%), and Montreal (-3.5%) also extended their downward streaks. Meanwhile, Ottawa and Edmonton bucked the trend, posting small annual gains.
- Toronto 2-bedroom rent: ↓ 9.0% YoY to $2,958
- Calgary 2-bedroom rent: ↓ 9.2% YoY to $2,080
- Vancouver 3-bedroom rent: ↑ 2.5% YoY to $4,384
- Ottawa 2-bedroom rent: ↑ 4.1% YoY to $2,589
In smaller cities, rent inflation remained strongest in Grande Prairie, AB (+15.6%) and Sherbrooke, QC (+13.1%), while Richmond Hill, ON saw the sharpest annual drop at -13.9%. In April, 6 of the 10 most affordable rental cities were in Alberta, with Lloydminster the cheapest at $1,195.
Shared Accommodation Rents See Modest Movement
Shared accommodation rents averaged $943 nationally in April, down 5% year-over-year. Most provinces recorded declines, with the steepest drops in Quebec (-4.4%) and Alberta (-4.0%). However, Ottawa (+7.7% to $1,027) and Edmonton (+1.1%) saw gains in shared housing markets, suggesting demand remains robust in select metros.
While national rents remain elevated relative to pre-pandemic levels, they are gradually adjusting in response to improving supply, slower demand, and regional economic factors. Renters in Alberta and Ontario benefit from softer pricing, while affordability erodes in smaller, faster-growing centres as market conditions become increasingly localized.
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Canada Market Rents Summary
The average rent in Canada was $2,116 for the month of April 2025, which decreased by 1.6% on a year-over-year basis.
The average rent for a bachelor apartment in Canada was $1,611 for the month of April 2025, which increased by 1.3% on a year-over-year basis.
The average rent for a 1-bedroom apartment in Canada was $1,904 for the month of April 2025, which decreased by 2.6% on a year-over-year basis.
The average rent for a 2-bedroom apartment in Canada was $2,309 for the month of April 2025, which decreased by 2.1% on a year-over-year basis.
The average rent for a 3-bedroom apartment in Canada was $1,904 for the month of April 2025, which decreased by 2.1% on a year-over-year basis.
How Does Renting Compare with Homeownership in Today’s Housing Market?
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Rental Price Changes by City
Rental Price Changes by Province
Rental Price Growth by Housing Type
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Frequently Asked Questions on Canadian Housing Market Outlook for 2025
Will 2025 be a good year to buy a house in Canada?
2025 could be an ideal year for homebuyers as housing prices in Canada are expected to stabilize, offering a window of opportunity for those looking to enter the market. With demand expected to remain strong in big cities like Toronto, Vancouver, and Montreal, buyers should act quickly in regions where prices are more affordable. The potential for increased housing inventory and fewer price surges will make homeownership more attainable for financially prepared buyers.
Are Canadian home prices expected to drop in 2025?
Home prices in Canada are expected to stabilize rather than decline sharply in 2025. While some regions may experience slight price corrections, factors like low housing supply, population growth, and continued demand will keep prices relatively steady. Major urban centres may see modest increases, while smaller markets could experience greater affordability. Monitoring housing trends will help buyers identify areas with more favourable pricing.
Will Canada’s housing market still be in a bubble in 2025?
Speculation about a housing bubble remains, but experts predict Canada’s real estate market is entering a period of stabilization rather than collapse. Housing shortages, particularly in high-demand regions like Toronto and Vancouver, continue to prevent significant price drops. While affordability challenges persist, Canada’s market is more likely to experience a soft landing, with home prices balancing as supply improves.
What are the predictions for Canada’s housing prices in 2025?
Home prices in Canada are predicted to remain stable, with slight increases in major markets. Supply-demand imbalances will likely drive growth, particularly in regions with limited housing inventory. Cities like Vancouver, Montreal, and Toronto will remain competitive due to ongoing demand, while smaller markets may offer better affordability for buyers. Monitoring regional price forecasts will help identify areas with stable or lower home prices.
How will population growth impact Canada’s housing prices in 2025?
Canada’s strong population growth will continue to put upward pressure on home prices in 2025. Increased demand for homes, particularly in urban centres, will outpace the growth in housing supply, maintaining competitive prices. Efforts to improve construction and address supply shortages may help balance the market over time, but high-demand areas are expected to see continued price resilience.
Will housing affordability improve in 2025?
Housing affordability in Canada will remain a key challenge in 2025, especially in cities like Toronto and Vancouver, where demand far exceeds supply. While home prices are stabilizing, affordability improvements will depend on increased housing inventory and more balanced market conditions. Buyers looking for affordable options should explore smaller markets or up-and-coming regions where prices remain more accessible.
Housing Market Glossary and Definitions
MLS® Home Price Index (HPI)
The MLS® Home Price Index (HPI) is a real estate price index compiled by the Canadian Real Estate Association (CREA) that tracks the price of homes in your neighbourhood. It’s a quick way for Canadians to compare home prices in different parts of Canada and between different periods without having to factor in the unique characteristics of a particular property.
While market prices can vary from one month to the next based on seasonal factors, the Home Price Index (HPI) provides a more consistent view and tracks price trends over an extended period. The Home Price Index (HPI) is updated annually in May to reflect changes in real estate markets.
MLS® HPI is the most comprehensive and precise way to track a neighbourhood’s home price level and trends. MLS HPI uses over 15 years of data from the MLS® System and advanced statistical models to create a “typical” home based on the characteristics of homes purchased and sold. This benchmark home is tracked across all Canadian neighbourhoods and various types of homes.
Strata insurance
Strata insurance is insurance that a strata or condominium uses to cover damages to common areas, assets and liabilities to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. Strata insurance can cover the following:
- Buildings and structures on the strata’s property, including common areas such as the garage, roof, lobby, pool, etc.,
- Liabilities for any property damage or bodily harm due to an injury suffered on a strata property,
- Which also includes fixtures in the standard unit or part of the original make of each unit.
Strata insurance generally does not cover personal belongings and appliances in a condo unit. Damage caused by individual unit owners (e.g., water damage due to a unit owner’s negligence) is typically covered under personal condo insurance.
Property Types
Detached homes, also known as single-family homes, are residential properties that stand alone and are not connected to other buildings. They are legal single residential units on their own parcel of land and have a separate title.
Semi-detached homes are characterized by their unique architectural design. Two houses are built side by side and share a common wall. Although sharing a building, semi-detached homes have their own parcel of land and separate legal titles.
Townhouses are residential dwellings typically characterized by narrow, tall structures, often sharing walls with neighbouring units. Although they may share yards or common elements with their neighbours, townhouses will have separate legal titles from any adjoining building. Townhouses can be purchased as freehold or leasehold within a condo or strata and may come with their own land parcel. Townhouses can be part of a low-rise or high-rise building.
Condo apartments, also known as condominiums, are residential properties that combine elements of apartments and individual homes. It is a unit within a larger building or complex owned by an individual who also shares ownership of common areas and amenities with other residents. Condo apartment owners have legal ownership of their units and can modify them within the guidelines set by the condominium association. Unlike a townhouse, condos do not offer exclusive use of outdoor space unless they come with a balcony or terrace. Condos can be part of a low-rise or high-rise building.
Plexes or multiplexes are unique residential buildings constructed into 2 to 6 units within a single structure. Traditionally, they have been designed as low-rise residential buildings where any unit is accessible via an external entrance with higher floors connected by staircases. Each unit will have a separate registration and title but may share common elements and co-ownership fees with the other multiplex owners. Plexes are common in Québec and older parts of Toronto.
Property Ownership Classes
A freehold is a type of property ownership where an individual or entity has complete and indefinite ownership rights over a property and its parcel of land. Common freehold property types include detached houses, semi-detached houses, farms, and townhouses not part of condominium corporations.
A condominium or condo is a distinct type of property class that combines apartment living and individual homeownership elements. In a condominium, individual units are owned by the residents, while the common areas and amenities are shared among all the unit owners. This type of ownership gives you rights to your specific unit and some rights and responsibilities to the common areas, such as the hallways, elevators, garage, pool and rooftop patios.
A leasehold is a legal arrangement where a person or entity holds the right to use and occupy a property for a specific period, typically through a lease agreement. In some cases, the leaseholder may own the building or unit and rent the land from the landowner (landlord).
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