Trade tensions, global uncertainty, high unemployment and modest income growth are straining household budgets in Canada, according to the Canada Mortgage and Housing Corporation (Ontario). Many homeowners are facing higher mortgage payments after renewing at increased rates, while slower population growth is reducing housing demand.
In the organization’s latest “In-House” podcast, host Joelle Hamilton and Kevin Hughes, one of CMHC’s deputy chief economists, explore key findings from CMHC’s “2026 Housing Market Outlook” and forecast what’s in store in 2026 for Canada’s economy, housing demand, home prices, rental markets and construction.
Here are three highlights of the discussion:
1. Canada’s economy is projected to grow by 0.7% in 2026, with trade tensions, unemployment and modest income growth weighing on housing demand.
2. Housing demand is expected to gain momentum, with temporary sales increases in Ontario and British Columbia.
3. Housing starts will decline nationally, especially in the condominium sector.
Tune in for the podcast here.
