Canada Housing Market Report March 2026
Housing Affordability in Canada: Modest Gains but Persistent Challenges in March 2026.
In March 2026, Canada’s housing market remained subdued amid higher mortgage rates and economic uncertainty. National home sales were virtually flat month over month at roughly 38,700 transactions, down 2.3 percent from March 2025. The MLS Home Price Index fell 0.4 percent from February and 4.7 percent year over year, marking continued declines. The national average home price stood at $673,084, down 0.8 percent from a year earlier. Inventory stayed relatively tight with new listings edging lower, but overall activity reflected persistent affordability challenges across much of the country.
| CANADA: AVERAGE HOUSE PRICES. MARCH 2026 | ||
| CITY | AVERAGE HOUSE PRICE | Y/Y % Change |
| CANADA | $673,084 | -0,8% |
| Calgary | $566,200 | -3.0% |
| Edmonton | $418,500 | -2.9% |
| Halifax | $571,700 | 2.9% |
| Montreal | $595,200 | 4.9% |
| Ottawa | $617,700 | -2.1% |
| Quebec City | $450,200 | 10.1% |
| Saskatoon | $435,200 | 5.4% |
| Toronto | $941,800 | -7.4% |
| Vancouver | $1,104,300 | -6.8% |
| Winnipeg | $394,600 | 2.9% |
| Source: CREA 2026 | ||
Housing Affordability Across Canada in March 2026
Housing affordability in Canada showed modest ongoing improvement in early 2026 but remained significantly stretched compared to historical norms. RBC Economics reported that its national aggregate affordability measure eased for the eighth straight quarter to 52.4 percent in Q4 2025, meaning the typical household would need to allocate just over half its income to cover mortgage payments, property taxes, and utilities on a representative home. Gains continued into 2026 but at a slower pace due to stable mortgage rates and moderating price declines.
National home prices stayed soft, with the average sale price at $673,084 in March 2026, down 0.8 percent from a year earlier. The MLS Home Price Index fell 4.7 percent year over year. Persistent affordability challenges weighed on buyer demand, particularly in high cost markets such as Toronto, Vancouver, and parts of Ontario and British Columbia, where price to income ratios stayed elevated. In contrast, markets in the Prairies, Quebec, and Atlantic Canada saw relatively better conditions, with some areas experiencing price stability or modest gains amid tighter inventory.
Rental affordability also faced pressure in many urban centres, though overall market conditions reflected a gradual easing from the 2023 peak. Economists noted that further meaningful improvements in 2026 would likely be limited without deeper price corrections or stronger income growth, as the Bank of Canada was expected to hold rates steady. New supply initiatives and policy measures, such as first time buyer incentives, offered some relief but had yet to substantially shift the national picture. Affordability remained a key barrier for many prospective buyers, especially younger households and those in major cities.
