Homeownership in Canada has become increasingly challenging. Rising interest rates and high housing prices have made affordability a major issue for Canadians. Where you live plays a huge role in housing costs: for instance, a detached home in Vancouver can cost more than double the national average, while smaller cities in Atlantic Canada remain far more affordable.
This article will go into more detail about average home prices across Canada, provincial and city averages, and renting versus buying.
Historical Average Canadian Home Prices
Home prices generally increase over time, despite the odd dip here and there. While inflation has played a steady role in driving prices higher each year, market forces like supply shortages and growing demand have led to more noticeable increases in recent years.
The following chart details Canada’s national average home prices each year over the past 10 years.
| Year | Average Home Price |
| 2025 | $689,000 |
| 2024 | $713,000 |
| 2023 | $725,000 |
| 2022 | $722,000 |
| 2021 | $761,000 |
| 2020 | $604,000 |
| 2019 | $542,000 |
| 2018 | $544,000 |
| 2017 | $558,000 |
| 2016 | $526,000 |
| 2015 | $451,000 |
You’ll notice that although home prices in 2025 are much higher than they were in 2015, there were instances where prices dipped: in 2018-2019, then again in 2022 following a significant spike in 2021 during COVID, then once again in 2024-2025 amidst economic uncertainty and ongoing affordability challenges.
That said, these blips along the way do not determine the long-term overall upward trend in home prices.
| How Have House Prices Changed Over The Past Year? According to CREA, the national home price average dipped 1.1% year-over-year1 |
Current Average House Prices In Canada
It’s helpful to understand how average home prices behave not just on a national level, but on a provincial and municipal level as well.
National Average
Based on the above chart, the current national average for home prices is approximately $689,000.
Average Home Prices By Province
Average house price varies significantly by province and city. The following table details the current home prices in each province:
| Province | Average House Price |
| British Columbia | $979,437 |
| Alberta | $519,244 |
| Saskatchewan | $362,700 |
| Manitoba | $390,877 |
| Ontario | $833,376 |
| Quebec | $567,589 |
| New Brunswick | $335,100 |
| Nova Scotia | $432,600 |
| Newfoundland & Labrador | $337,000 |
| Prince Edward Island | $366,600 |
Average Home Prices Across Canada
Average Home Prices By City
Home prices can also vary widely based on specific municipalities throughout each province. Here’s a breakdown of home prices based on major cities across Canada:
| City | Average House Price |
| Vancouver | $1,132,500 |
| Calgary | $565,200 |
| Toronto | $1,170,000 |
| Montreal | $581,500 |
| Halifax | $563,300 |
| – Most Expensive Cities: Vancouver, Toronto – Most Affordable Cities: St. John’s, Regina, Moncton |
Average House Price Based On Housing Type
Different housing options are available across Canada, each with its own typical home price range. The cost will vary depending on the type of property you choose. Common housing categories include the following:
| Single Family Homes | $757,200 |
| Townhouses | $619,500 |
| Condos | $478,900 |
| Are Condos A Better Investment? Condos are often more affordable and easier to maintain, making them attractive for first-time buyers and investors. Learn more: Are Condos A Good Investment In Canada? |
Factors Driving Average Home Prices
The average home price in Canada is shaped by several related factors, including the following:
- Supply And Demand: Limited housing inventory combined with high demand has kept competition high, driving housing prices upward.
- Interest Rates: Another major influence is interest rates. After sharp increases in 2022 to 2024, mortgage rates in 2025 have remained elevated, making borrowing more expensive and reducing affordability.
- Bank Of Canada: The Bank of Canada’s policy rate has cooled demand, but experts expect gradual rate cuts in 2026, which could reignite buyer activity.
- Economy: Broader economic conditions — including wage growth, employment trends, and inflation — also affect how much Canadians can afford to spend on housing.
- Government Policies: The Canadian government’s policies, such as the foreign buyer ban, have attempted to ease pressure on the market. However, the jury is still out in terms of whether this ban on foreign buyers will actually make housing more affordable for Canadians.
| Note: As of late 2025, Canadian mortgage rates range from about 3.45%–6.5%, with the Bank of Canada’s policy rate cut to 2.25% after peaking near 5% in 2024. These reductions have alleviated pressure on borrowing costs, improving affordability compared to the past two years. Yet despite the easing of mortgage rates, they still remain somewhat elevated compared to a few years ago. Uncertainty remains about how long lower rates will last. |
What Will House Prices Look Like In The Next Few Years?
According to the Canadian Real Estate Association (CREA), Canada’s average home price is projected to rise 3.2% in 2026 from the year before, reaching roughly $698,600. This would represent the sixth consecutive year that national prices have hovered close to the $700,000 mark.
Early in 2025, economic uncertainty and tariff-related issues caused many buyers to hesitate getting into the housing market, which kept home prices at bay. However, since March 2025, sales steadily improved, showing stronger buyer demand.
| Is Now a Good Time To Buy? Many experts believe now could be a good time to buy a home in Canada, thanks to lower borrowing costs and new buyer-friendly rules. However, affordability challenges remain, with average prices expected to decline in some regions like Ontario and BC, while others such as Atlantic Canada and the Prairies continue to see gains. Ultimately, whether it’s a good time depends on your location, financial stability, and long-term housing goals. |
Should You Buy Or Rent?
Buying typically costs more upfront, but ownership builds equity over time. That said, given the high cost of home prices today, many first-time buyers are being pushed into the rental market. This has increased demand for rentals and kept rents elevated despite recent cooling trends.
Learn more: Should You Rent Or Buy A House In Canada: What’s The Best Option?
Average Rent In Major Canadian Cities
Here’s a snapshot of average monthly rent for a two-bedroom apartment:
| City | Average Rent |
| Vancouver | $3,170 |
| Toronto | $2,690 |
| Ottawa | $2,490 |
| Montreal | $1,930 |
| Calgary | $1,920 |
| Canada-Wide | $2,100 |
Cost To Own Vs Rent
To help you understand the costs of owning versus renting, consider the following factors:
| Cost To Own | Cost To Rent | |
| Upfront Costs | Higher; requires a down payment (often 5–20% of the home’s value), closing fees, legal costs, and land transfer taxes. | Requires only a deposit and first month’s rent. |
| Monthly Expenses | Mortgage payments are typically higher than rent; homeowners must also budget for property taxes, insurance, & maintenance. | Rent costs are predictable; covers housing without surprise costs like repairs or property taxes. |
| Equity Building | Each mortgage payment increases ownership stake in the property. | No equity growth; monthly rent payments don’t build ownership. |
| Tip: In high-cost cities like Toronto or Vancouver, renting can be cheaper in the short term. However, buying pays off if you plan to stay long-term and can handle the upfront costs. |
Impact Of High Home Prices
High home prices are impacting the rental market and first-time buyers’ decisions:
- Rental Market Pressure: Elevated home prices have pushed more Canadians to rent, driving demand and keeping rents high.
- First-Time Buyers: Many first-timers are being priced out of the housing market, especially in Toronto and Vancouver, where average home prices remain far above national levels.
- Shift In Behaviour: Younger buyers delay ownership, opting for rentals until prices stabilize or incomes rise.
- Regional Differences: Atlantic provinces and Prairies continue to be more affordable, making buying more accessible compared to Ontario and BC.
Housing Affordability: Factors Affecting How Much Buyers Can Afford
Housing affordability is determined by a variety of factors that influence how much buyers can realistically spend on a home.
- Mortgage Affordability Crisis: Rising home prices and higher borrowing costs have made qualifying for a mortgage increasingly difficult for many buyers, leading to an ongoing affordability crisis.
- Down Payments: In Canada, minimum down payments start at 5% for homes under $500,000. But higher amounts are required for more expensive properties, and high-ratio mortgages also require insurance premiums.
- Mortgage Stress Test: Buyers must prove they can afford payments at a qualifying rate higher than their actual mortgage rate. This ensures that they can handle future increases in interest rates or debt obligations.
- Closing Costs & Other Expenses: Aside from the purchase price, buyers also need to pay for the following:
- Legal fees
- Land transfer taxes
- Inspections
- Ongoing costs like property taxes & maintenance
| Why Is Default Mortgage Insurance Needed For High-Ratio Mortgages? Default mortgage insurance is required for high-ratio mortgages in Canada, which are those with a down payment of less than 20%. This policy is meant to protect lenders against the risk of borrower default. This way, lenders can offer mortgages to buyers with smaller down payments while keeping interest rates competitive. |
How Much Should You Spend On A House?
Deciding how much to spend on a house comes down to balancing your income, debts, and long-term financial goals. Consider the following tips to help you determine a comfortable price point so you’re not left financially strained.
- Income-Based Rule: Experts often recommend limiting your home purchase to 3 to 5 times your annual household income.
- Debt Ratios: Lenders typically use the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine affordability:
- GDS: Housing costs should not exceed 39% of your gross monthly income.
- TDS: Total debt payments (including housing) should not exceed 44% of your gross monthly income.
- Down Payment: The minimum down payment in Canada is 5% for homes under $500,000, with higher requirements above that threshold.
| Pro Tip: Use an online mortgage calculator to quickly calculate how much you can realistically afford in a home purchase. |
Example
Let’s say you earn $80,000 annually, have $500 in monthly debt payments, and can make a $40,000 down payment. Based on these figures, we can arrive at the following using an online calculator:
- Estimated Home Price You Can Afford: ~$416,800
- Monthly Mortgage Payment: ~$2,215 (based on a 5-year fixed rate at ~5.5% interest, 25-year amortization)
Final Thoughts
Average house prices in Canada remain among the highest in cities like Toronto and Vancouver, while more affordable homes are found in regions like the Prairies and Atlantic provinces. With borrowing costs and market pressures affecting affordability, buyers should consider not just the purchase price but also long-term expenses like mortgage payments, taxes, and maintenance. Be sure to set a realistic budget, avoid over-borrowing, and plan for future rate changes to ensure you can sustain homeownership.
FAQs
Why are house prices so different across provinces?
Which city in Canada has the highest average home price?
Which province has the most affordable housing?
Are home prices in Canada expected to rise or fall in the next few years?
What is the average rent in Canada?
References
1 CREA; National Price Map. CREA.
2 Nesto. (2026, January 15). Canadian Housing Market Outlook 2026. Nesto.
3 Canadian Mortgage Trends News. (2025, October 17). Canada’s big banks diverge on 2026 rate forecasts as easing cycle nears its end. Canadian Mortgage Trends News. Canadian Mortgage Trends News.
4 Global News. (2025, January 1). Will it be easier or harder for Canadians to buy a home in 2025? Global News. CMHC. Affordability Calculator. CMHC.
5 CREA. (2026, January 15). CREA Updates Resale Housing Market Forecast for 2026 and 2027. CREA.
