Canada’s housing market is being battered from every angle, and the cracks are widening into a full-blown crisis. Population growth, the single biggest driver of housing demand, has nearly stalled. Statistics Canada reported Q2 growth of just 47,000 people — a 0.1% increase and the second-slowest pace since 1946, excluding the pandemic. For a country that has leaned heavily on immigration to fuel housing, GDP, and tax revenues, this 80-year low is seismic. Developers who banked on endless inflows are now sitting on record inventories, while Vancouver and Toronto — the markets most dependent on population surges — are already showing demand erosion and softening rents.

At the same time, supply battles are intensifying. Century Group’s Tsawwassen redevelopment was slashed from 1,433 homes to just 600 after NIMBY pushback, despite meeting planning requirements. In Burnaby, petitions against densification threaten to stall family housing. This kind of resistance highlights how hard it will be for cities to meet ambitious housing targets.

Meanwhile, renters are gaining some leverage. Vancouver rents are falling, down 9.3% year-over-year to $2,825, and rental starts have surged to record highs. Landlords are offering concessions, a sharp reversal from the bidding wars of recent years.

Toronto, however, is flashing red. Power-of-sale listings — Ontario’s faster foreclosure alternative — have exploded 14-fold since 2021, now averaging 140 a month and hitting a record 1,200 active listings. Distressed sales are growing while resale volumes remain stuck near generational lows.

National home prices reveal a market split in two. The benchmark fell 20% from the 2022 peak to $686,800, but this correction is almost entirely in Ontario and B.C. Ontario prices are down 26%, B.C. 12% — yet eight of ten provinces hit new record highs this year, with Newfoundland leading.

Zooming in, Vancouver’s inventory has soared to 18,100 homes — the highest in 12 years — while the benchmark price fell for the fifth straight month. Toronto’s market is drowning in inventory, with prices down $312,000 from peak. Together, these metros are dragging national averages while the rest of Canada continues to climb.

This isn’t just a cooling cycle — it’s a structural reckoning. Population growth is slowing, supply is stalling under community resistance, rents are correcting, and distressed sales are rising. The fundamentals that fuelled Canada’s boom — immigration, cheap credit, and confidence — are eroding. The fight for affordability and stability is only just beginning.

_________________________________

Contact Us To Book Your Private Consultation:

📆 https://calendly.com/thevancouverlife

Dan Wurtele, PREC, REIA

604.809.0834

[email protected]

Ryan Dash PREC

778.898.0089
[email protected]

www.thevancouverlife.com