Supply shortage versus overbuilding
Unlike the 1990s, when overbuilding led to a prolonged slump, today’s market is underpinned by a housing shortage. CMHC noted that 9,363 units remained unsold in pre-construction, while 10,450 were unsold in projects under construction as of the second quarter of 2025. Yet demand pressure is evident in the rental market, with a record number of leases signed in the first half of 2025.