“Affordability and cost-of-living pressures weighed heavily on homebuyers nationwide,” said Don Kottick, president of RE/MAX Canada. “However, with two consecutive cuts to overnight rates in recent months failing to meaningfully shift consumer behaviour, it’s clear broader issues, including job security and economic uncertainty, continue to undermine consumer confidence levels.”
Limited price growth
Only three markets posted higher average prices year over year. Greater Edmonton led with a 6.3% increase to $212,672, followed by Halifax with a 0.3% rise to $487,719 and Calgary with a 0.2% gain to $348,503. Meanwhile, values softened in the Greater Toronto Area by 5.1%, in Greater Vancouver by 5.8% and in the Fraser Valley by 7.4%.
Construction slowdown
Condominium apartment starts declined across all markets except Edmonton and Ottawa, with the sharpest pullback in the Greater Toronto Area, according to Canada Mortgage and Housing Corporation’s (CMHC) Fall 2025 Housing Report. A sharp reduction in investor demand earlier in 2025 reduced project feasibility, contributing to cancellations, delays, and a notable decline in new starts.
Pre-construction condominium sales have slowed considerably from peak levels in 2021–2022. Persistent financing challenges, elevated construction costs, labour shortages, and a widening affordability gap further eroded achievability in 2025, particularly in Toronto and Vancouver.
Rentals gain ground
Lower upfront costs and reduced maintenance obligations strengthened the rental value proposition during the period of economic uncertainty. More condominium projects shifted to purpose-built rentals, causing vacancy rates to edge higher in several markets and rents to stabilize—particularly in Halifax and Calgary.