Bank of Canada Sees Opportunity in Growing Condo Supply

The Bank of Canada kept its key rate at 2.25%, but significantly downgraded housing's impact on 2026 GDP, expecting it to reduce growth by 0.1 points. Housing, once a growth driver, now faces weak investor interest, slow population growth, and affordability issues. A glut of small, investor-focused condos in major cities is causing an inventory overhang, restraining new construction and weakening the market.