Canada Housing Demand Slows Into 2027

An economist expects Canada's population losses to continue through 2027, easing housing demand and giving affordability more room to improve for buyers.
Canada's long housing demand tailwind from population growth has shifted, creating a slower market phase that may last several more quarters ahead.
Softer demand is already feeding into affordability discussions, with analysts pointing to cooler rental conditions as part of the adjustment process across Canada.
The adjustment may feel uncomfortable, but experts say a cooler demand environment can gradually help rebalance Canada's overvalued housing market over time.
With inflation pressure easing, the central bank may have more room to lower its policy rate and support Canada's economy and housing market.