Canada housing market
Key indicators
New housing price index
120.2
−2.0% vs 12 months earlier
Sep 2026 · Statistics Canada
New homes only; not a resale price measure.
Housing starts (SAAR)
248,896units, annualized
−11.3% vs 12 months earlier
Sep 2026 · CMHC
Seasonally adjusted annual rate, not an actual monthly count.
Dwelling units permitted (last 12 months)
295,800units
−3.4% vs prior 12 months
Sep 2026 · Statistics Canada
Population
41,798,407persons
+0.5% vs one year earlier
Jul 1, 2026 · Statistics Canada
Analysis
Canada housing market analysis
New-home prices
Statistics Canada's new housing price index for Canada stood at 120.2 in Sep 2026, down 2.0% from a year earlier.
With December 2016 set to 100, the index means builders are charging about 20.2% more for a comparable new home than they did then.
The index peaked at 126.1 in Aug 2022 and is now 4.7% below that high, so new-home prices have given back part of their earlier gains.
The index tracks contractors' selling prices for new homes of the same specifications. It does not cover resale homes, so it shows builder pricing rather than the whole market.
Population and housing need
Canada's population was estimated at 41,798,407 (Jul 1, 2026), growing 0.5% over the year.
Borrowing costs
Borrowers who took out a new uninsured mortgage in Aug 2026 paid an average of 4.58% on fixed terms of five years or more and 3.90% on variable rates, according to the Bank of Canada. The five-year-plus fixed average is up 0.3 percentage points from a year earlier.
Variable rates sit 0.68 points below long fixed terms, so borrowers are paying a premium for payment certainty.
The Bank of Canada's policy rate is 2.50% and the banks' prime rate is 4.70%. Variable-rate mortgages are priced off prime, so they move when the policy rate changes; fixed rates follow Government of Canada bond yields, with the 5-year yield at 3.46%.
Written from the latest official figures and refreshed whenever new data are released. It describes current conditions; it is not a forecast.
Trends
2016-10 to 2026-09. Latest: 120.2 (Sep 2026).
2016-10 to 2026-09. Latest: 248,896 (Sep 2026).
2021-10 to 2026-09. Latest: 23,694 (Sep 2026).
Sources
Interest rates in Canada
Borrowing costs shape what buyers can afford. These are the Bank of Canada's policy rate, the banks' prime and posted rates, and the average rates Canadians actually paid on new fixed and variable mortgages.
Average rates on new mortgages
Aug 2026 · Bank of Canada, funds advanced by banks and lenders
Variable rate
Insured
3.74%
−0.7 pts y/y
Uninsured
3.90%
−0.6 pts y/y
Fixed, 1 to 3 years
Insured
4.94%
−0.4 pts y/y
Uninsured
5.31%
+0.0 pts y/y
Fixed, 3 to 5 years
Insured
4.02%
+0.0 pts y/y
Uninsured
4.13%
0.0 pts y/y
Fixed, 5 years and over
Insured
4.12%
+0.1 pts y/y
Uninsured
4.58%
+0.3 pts y/y
What borrowers actually paid on new mortgages, on average, not lender offers. Insured mortgages have a down payment under 20% and carry default insurance, which is why they usually get lower rates.
Major city markets
Toronto housing market overview
Full Toronto report →New housing price index
105.0
−4.9% vs 12 months earlier
Sep 2026
Housing starts, 12 mo
23,355
−9.8% vs prior 12 months
Sep 2026
Avg. 2-bedroom rent
$2,045
+3.7% vs prior year
October 2025 survey
Rental vacancy
3.00%
+0.5 pts vs prior year
October 2025 survey
Vancouver housing market overview
Full Vancouver report →New housing price index
123.4
−2.1% vs 12 months earlier
Sep 2026
Housing starts, 12 mo
26,601
−4.9% vs prior 12 months
Sep 2026
Avg. 2-bedroom rent
$2,364
+2.2% vs prior year
October 2025 survey
Rental vacancy
3.70%
+2.1 pts vs prior year
October 2025 survey
Montréal housing market overview
Full Montréal report →New housing price index
159.5
+1.2% vs 12 months earlier
Sep 2026
Housing starts, 12 mo
27,474
+12.5% vs prior 12 months
Sep 2026
Avg. 2-bedroom rent
$1,346
+14.5% vs prior year
October 2025 survey
Rental vacancy
3.30%
+0.8 pts vs prior year
October 2025 survey
Calgary housing market overview
Full Calgary report →New housing price index
129.7
0.0% vs 12 months earlier
Sep 2026
Housing starts, 12 mo
24,403
−12.4% vs prior 12 months
Sep 2026
Avg. 2-bedroom rent
$1,908
+1.7% vs prior year
October 2025 survey
Rental vacancy
5.00%
+0.2 pts vs prior year
October 2025 survey
Ottawa–Gatineau housing market overview
Full Ottawa–Gatineau report →New housing price index
162.3
+1.0% vs 12 months earlier
Sep 2026
Housing starts, 12 mo
14,228
+16.1% vs prior 12 months
Sep 2026
Avg. 2-bedroom rent
$1,757
+4.3% vs prior year
October 2025 survey
Rental vacancy
3.40%
+0.9 pts vs prior year
October 2025 survey
Edmonton housing market overview
Full Edmonton report →New housing price index
105.7
−0.8% vs 12 months earlier
Sep 2026
Housing starts, 12 mo
19,055
−11.4% vs prior 12 months
Sep 2026
Avg. 2-bedroom rent
$1,598
+4.5% vs prior year
October 2025 survey
Rental vacancy
3.90%
+0.8 pts vs prior year
October 2025 survey