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: a detached home in Vancouver, for instance, can cost more than double the national average, while smaller cities in Atlantic Canada remain far more affordable.
This article goes into more detail about average home prices across Canada, provincial and city averages, and renting versus buying. If you are getting ready to buy, it also helps to understand how to shop for a mortgage so you can budget with confidence.
Key Points
1. The average home price in Canada is about $674,819 as of July 2026, roughly flat from a year earlier (up 0.2%).
2. Prices vary widely by region: British Columbia averages $930,231 and Ontario $797,486, while New Brunswick, around $344,000, is among the most affordable.
3. The market is split: prices are rising across the Prairies, Quebec, and Atlantic Canada, but softening in British Columbia and Ontario.
4. The “average” price is a mean that luxury sales can pull upward, so the median (the typical home) is often lower.
What Is The Average House Price In Canada?
As of July 2026, the average home price in Canada is approximately $674,819, up just 0.2% from a year earlier.1 That national figure is a useful starting point, but it hides a lot of variation. Prices swing dramatically depending on the province, the city, and the type of home you are buying, so most Canadians will pay well above or well below that number depending on where they live.
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 |
*Based on November figures from Trading Economics.
You will notice that although home prices in 2025 are much higher than they were in 2015, there were instances where prices dipped: in 2018 to 2019, then again in 2022 following a significant spike in 2021 during COVID, then once again in 2024 to 2025 amidst economic uncertainty and ongoing affordability challenges.
That said, these blips along the way do not change the long-term upward trend in home prices.
How Have House Prices Changed Over The Past Year?
According to the Canadian Real Estate Association (CREA), the national average home price rose 0.2% year over year as of July 2026, essentially flat.1 The bigger story is regional: prices climbed across the Prairies, Quebec, and Atlantic Canada, while British Columbia and Ontario softened.
Average Vs Median Home Price: What Is The Difference?
When you see a headline “average house price,” it usually refers to the mean: the total value of all homes sold divided by the number of sales. The problem is that a small number of very expensive sales, common in markets like Vancouver and Toronto, can pull that average upward.
The median price is different. It is the middle price, where half of homes sold for more and half sold for less. Because it is not skewed by luxury sales, the median often gives a more realistic picture of what a typical home costs.
- Average (mean): Total sales value divided by the number of sales. Sensitive to very high or very low sales.
- Median: The middle price of all homes sold. Better reflects the typical home.
The takeaway: the national “average” can look higher than what most buyers actually pay in the majority of the country, so treat it as a benchmark rather than a precise budget.
Current Average House Prices In Canada
It is 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 most recent CREA data, the current national average for home prices is approximately $674,819 as of July 2026.
Average Home Prices By Province And Territory
Average house prices vary significantly by province and territory. The following table details the current average home price in each region, along with how it has changed over the past year.
| Province or Territory | Average Price (July 2026) | Year-Over-Year Change |
|---|---|---|
| British Columbia | $930,231 | -1.3% |
| Alberta | $515,740 | +2.7% |
| Saskatchewan | $383,500 | +3.6% |
| Manitoba | $392,900 | +3.2% |
| Ontario | $797,486 | -2.9% |
| Quebec | $570,542 | +5.2% |
| New Brunswick | $344,000 | +6.7% |
| Nova Scotia | $429,100 | 0.0% |
| Newfoundland and Labrador | $359,300 | +9.3% |
| Prince Edward Island | $388,400 | +2.4% |
| Yukon | $622,560 | +5.1% |
| Northwest Territories | $546,837 | +5.2% |
Average Home Prices Across Canada
Average Home Prices By City
Home prices can also vary widely between municipalities within each province, and big-city markets tend to sit well above their provincial averages.
- Most expensive cities: Vancouver and Toronto.
- Most affordable cities: St. John’s, Regina, and Moncton.
Average House Price Based On Housing Type
Different housing options are available across Canada, each with its own typical price range. The cost will vary depending on the type of property you choose.
| Housing Type | Average Price |
|---|---|
| Single-family homes | $757,200 |
| Townhouses | $619,500 |
| Condos | $478,900 |
Condos are often more affordable and easier to maintain, which makes them attractive for first-time buyers and investors. If you are weighing a condo against a house, it helps to review the pros and cons of buying a house vs a condo.
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 prices upward.
- Interest rates: After sharp increases from 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.
- The economy: Broader economic conditions, including wage growth, employment trends, and inflation, also affect how much Canadians can afford to spend on housing.
- Government policies: Policies such as the foreign buyer ban have attempted to ease pressure on the market. The jury is still out on whether the ban will actually make housing more affordable for Canadians.
A Note On Current Mortgage Rates
As of late 2025, Canadian mortgage rates range from about 3.45% to 6.5%, with the Bank of Canada’s policy rate cut to 2.25% after peaking near 5% in 2024. These reductions have eased borrowing costs and improved affordability compared to the past two years. Even so, rates remain somewhat elevated compared to a few years ago, and uncertainty remains about how long lower rates will last.
What Will House Prices Look Like In The Next Few Years?
National prices have held remarkably steady, hovering near the $675,000 to $700,000 mark for several years running. As of July 2026, the average sits at $674,819, up just 0.2% from a year earlier.1 Earlier CREA projections pointed to modest growth of around 3% for the year, but the mid-2026 picture is flatter and far more regional than any single national number suggests.
The clearest trend is divergence. Provinces like Quebec (up 5.2%), New Brunswick (up 6.7%), and Newfoundland and Labrador (up 9.3%) are posting strong gains, while British Columbia (down 1.3%) and Ontario (down 2.9%) have cooled. Where prices go next will depend heavily on your region, interest rates, and 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. Affordability challenges remain, though, with average prices expected to decline in some regions like Ontario and B.C., while others such as Atlantic Canada and the Prairies continue to see gains. Ultimately, whether it is a good time depends on your location, financial stability, and long-term housing goals. If you decide to move forward, knowing how to shop for a mortgage will help you secure the best rate.
Should You Buy Or Rent?
Buying typically costs more upfront, but ownership builds equity over time. Given the high cost of homes 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. Deciding between renting vs buying a home comes down to your budget and how long you plan to stay.
Average Rent In Major Canadian Cities
Here is 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 |
Source: Statistics Canada 3
Cost To Own Vs Rent
To help you understand the costs of owning versus renting, consider the following factors.
| Factor | Cost To Own | Cost To Rent |
|---|---|---|
| Upfront costs | Higher; requires a down payment (often 5% to 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, and maintenance. | Rent costs are predictable and cover housing without surprise costs like repairs or property taxes. |
| Equity building | Each mortgage payment increases your ownership stake in the property. | No equity growth; monthly rent payments do not build ownership. |
In high-cost cities like Toronto or Vancouver, renting can be cheaper in the short term. Buying pays off, however, if you plan to stay long-term and can handle the upfront costs.
What Is Your Own Home Worth?
National and provincial averages are a helpful benchmark, but they will not tell you what your specific home is worth. Your home’s value depends on its location, size, condition, and recent sales of comparable homes nearby. To get a precise number, you can order a professional appraisal or estimate it with a tool like how much is my house worth.
Knowing your home’s value matters because it is the first step to understanding your home equity, the share of your home you actually own. Once you know your value, you can subtract your remaining mortgage balance to see how much equity you have built, and how you might be able to build home equity further over time.
Impact Of High Home Prices
High home prices are reshaping 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, especially in Toronto and Vancouver, where average prices remain far above national levels.
- Shift in behaviour: Younger buyers are delaying ownership, opting for rentals until prices stabilize or incomes rise.
- Regional differences: Atlantic provinces and the Prairies continue to be more affordable, making buying more accessible than in Ontario and B.C.
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.
- The mortgage affordability crisis: Rising home prices and higher borrowing costs have made qualifying for a mortgage increasingly difficult for many buyers.
- Down payments: In Canada, minimum down payments start at 5% for homes under $500,000. Higher amounts are required for more expensive properties, and high-ratio mortgages also require insurance premiums.
- The mortgage stress test: Buyers must prove they can afford payments at a qualifying rate higher than their actual mortgage rate. This ensures they can handle future increases in interest rates or debt obligations.
- Closing costs and other expenses: Beyond the purchase price, buyers also need to budget for legal fees, land transfer taxes, inspections, and ongoing costs like property taxes and maintenance.
Why Is Default Mortgage Insurance Needed For High-Ratio Mortgages?
Default mortgage insurance is required for high-ratio mortgages in Canada, those with a down payment of less than 20%. The policy protects lenders against the risk of borrower default. This lets lenders 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 comes down to balancing your income, debts, and long-term financial goals. Use the following guidelines to find a comfortable price point so you are not left financially strained. Your mortgage affordability ultimately depends on your income, debts, and down payment.
- 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. Housing costs (GDS) should not exceed 39% of your gross monthly income, and total debt payments (TDS), including housing, should not exceed 44%.
- Down payment: The minimum down payment in Canada is 5% for homes under $500,000, with higher requirements above that threshold.
Use an online mortgage calculator to quickly estimate how much you can realistically afford.
Example
Say you earn $80,000 annually, have $500 in monthly debt payments, and can make a $40,000 down payment. Based on these figures, an online calculator produces the following.
| Result | Estimate |
|---|---|
| Estimated home price you can afford | ~$416,800 |
| Monthly mortgage payment | ~$2,215 (5-year fixed 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 the 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. Set a realistic budget, avoid over-borrowing, and plan for future rate changes so you can sustain homeownership.
Average House Price FAQs
Housing prices vary due to differences in demand, supply, local economies, and population growth. Provinces with strong job markets and high demand, like British Columbia and Ontario, tend to have much higher prices than provinces in Atlantic Canada.
Vancouver and Toronto consistently have the highest average home prices in Canada, both well above $1 million.
New Brunswick is currently among the most affordable provinces, with average home prices around $344,000, followed closely by Newfoundland and Labrador and Prince Edward Island.
The average is the total value of all sales divided by the number of sales, which can be pulled higher by a few very expensive homes. The median is the middle price, where half of homes sold for more and half for less, so it often better reflects what a typical home costs.
As of July 2026, the national average is roughly flat year over year (up 0.2%), but the market is divided. Prices are rising across the Prairies, Quebec, and Atlantic Canada, while British Columbia and Ontario have softened, so the direction depends heavily on your region.
The average rent for a two-bedroom unit nationwide is currently about $2,100 per month, though it is far higher in cities like Vancouver and Toronto.
References
- Canadian Real Estate Association (CREA). (2026). Housing market statistics, national and provincial (July 2026). https://www.crea.ca/housing-market-stats/
- Trading Economics. (2025). Canada average home prices, annual (November figures). https://tradingeconomics.com/canada/average-house-prices
- Statistics Canada. (2026). Average monthly rent, two-bedroom apartments. https://www.statcan.gc.ca/
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