The Evolving Landscape of Canada’s Housing Market: Insights from REMAX Canada

The Canadian real estate landscape has continuously evolved, reflecting changing demographics, economic trends, and policy shifts. According to the REMAX Housing Market Drivers Report released on October 27, 2025, cities like Halifax, the Greater Toronto Area (GTA), and Saskatoon have seen staggering year-over-year price increases. These rises, ranging from 377% to 460%, highlight both opportunities and challenges facing current and aspiring homeowners.

Historical Performance and Market Dynamics

Over the past three decades, homeownership in Canada has proven to be a significant wealth driver, especially for the middle class. However, the current generation of prospective homeowners faces unprecedented hurdles. A combination of rising interest rates, tightening lending policies, and increasing home prices have raised barriers to entry.

The REMAX report reveals an overwhelming trend: although real estate cycles are cyclic—moving from recovery to expansion, peak to contraction—today’s environment is fraught with complexities that may deter new homeowners. For example, Halifax Regional Municipality led the charge with a remarkable 460% price growth from 1994 to 2024, translating to a compounded annual growth rate (CAGR) of 5.91%. Following closely behind were the GTA with 436.2% and Saskatoon at 377%, providing a stark contrast to stagnant wage growth.

Affordability: An Ongoing Dilemma

The REMAX report confirms what many prospective buyers have long known: affordability continues to be a foremost concern. Despite rising inventory levels in many regions, the average price of homes has risen significantly faster than wages, complicating the path to homeownership for first-time buyers.

Challenges such as high mortgage rates, mortgage stress tests, and rising carrying costs place immense pressures on young, would-be homeowners. As a result, potential buyers find themselves in a tough spot, often competing against seasoned investors and older demographics looking to downsize or relocate. With falling inventory levels and chronic supply shortages in lower price brackets, the market seems increasingly tilted against aspiring homeowners.

The Impact of Population Growth

Population growth has emerged as a significant driver of housing demand, especially during the pandemic years, during which Canada experienced notable growth in immigration and in-migration. Calgary and Edmonton exemplify this trend, with populations rising by approximately 121% and 87%, respectively. Unfortunately, this inflow of people has strained housing supply, intensifying the competition among buyers.

A Scotiabank report from May 2021 highlighted Canada’s chronic housing shortage, emphasizing its lowest number of housing units per capita among G7 countries. With immigration fueling demand and the supply side remaining constrained, the gap between the two continues to widen.

Building Strategies to Address Supply: Government Initiatives

To address these issues, the Canadian government has initiated a variety of housing strategies like the Build Canada Homes program, which aims to construct affordable housing. Approximately $13 billion has been earmarked for these efforts, focusing on building 4,000 modular homes across several communities—though ideally, this number should scale to meet an ever-growing demand.

Despite such initiatives, the REMAX report calls for immediate and impactful reforms to ease the path to homeownership. Brokers have suggested measures like removing additional qualifications from the mortgage stress test and extending amortization periods, focusing on affordability as an overarching goal.

Policy Levers: The Rollercoaster of Government Influence

For decades, government policies have influenced the housing market’s trajectory. Interventions—such as the implementation of taxation measures or tightening lending policies—can create spikes or dips in housing activity. Recent developments indicate that while some efforts have succeeded in cooling demand, emerging policies remain too fragmented to address the underlying issues adequately.

Many have suggested that it’s time to return to more flexible lending options that supported homebuyers during previous economic cycles, like zero-down mortgages, which could revitalize market activity.

A Renewed Call for Homeownership in Canada

Despite these challenges, Canadians maintain a strong belief in the importance of homeownership. Statistics Canada indicates that the national homeownership rate rests at around 66%, but certain regions—like Calgary (70.5%) and St. John’s (69.4%)—continue to outperform.

Don Kottick, President of REMAX Canada, rightly points out: "Given the importance of home ownership, governments should be working to assist would-be homebuyers in realizing their dreams." Such a strategy must be robust, engaging all levels of government and private sectors for comprehensive solutions.

Navigating the Future: Key Insights and Takeaways

As the Canadian housing market confronts shifting conditions, several critical takeaways emerge:

1. Market Evolution: Just as previous generations have had to adapt to their economic realities, today’s potential homeowners must navigate the complexities of a market that is both attractive and formidable.

2. Government Support: Effective measures to support first-time buyers are essential to ensure homeownership accessibility for future generations.

3. Community Engagement: It’s imperative for various stakeholders—including local governments, developers, and community organizations—to collaborate in tackling housing supply issues.

4. Long-Term Outlook: Despite the current hurdles, historical trends suggest that resilience in the housing market will ultimately lead to renewed growth and stability—if systemic issues are addressed thoughtfully.

By focusing on collaborative efforts and innovative strategies, Canada can ensure that the dream of homeownership remains within reach for generations to come. The fundamental belief in homeownership—as a cornerstone of wealth and stability—remains strong and will undoubtedly continue to shape this market’s future trajectory.