Canada’s housing market will continue to cool in 2025 due to trade tensions, economic uncertainty, slower population growth and increasing unemployment, according to Canada Mortgage and Housing Corporation’s 2025 Summer Housing Market Outlook.
Many home buyers and developers are taking a “wait‑and‑see” approach amid weaker economic growth and lingering trade tensions.
Canadian average home prices are expected to decline by 2% in 2025, with larger drops in Ontario and British Columbia, according to the report.
CMHC expects the housing market to gradually recover in 2026 as trade frictions ease, economic confidence improves and economic growth resumes.
Read the full CMHC housing market report here.
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