2025 Housing Market Drivers Report

In its analysis of data and market conditions, the REMAX Housing Market Drivers Report found that, although each generation has faced significant economic challenges, the current cohort of property purchasers is facing among the most formidable headwinds yet. To date, each generation has bounced back—and fared exceptionally well—as history has shown that major Canadian centres rebound sharply once economic stability returns to the market.

“Each generation of Canadians homeowners—from Baby Boomers to Gen Z—has faced its challenges and obstacles. Today’s trade barriers, high interest rates and stringent lending policies may be overwhelming, but this too shall pass. Historically, dynamics evolve from recovery to expansion, peak to contraction, trough to recovery. Cyclically, the trough is short and gives way to renewed growth. In retrospect, buyers may look back and realize that this period represented the best opportunity in recent years to get into the market at a reduced price point” says Don Kottick, President, REMAX Canada.

Highest Growth Cities: 1994–2024

Halifax Regional Municipality

Greater Toronto Area

Reported the greatest increase in price percentage growth, rising 460 per cent between 1994 and 2024 for a compounded annual growth rate (CAGR) of 5.91 per cent.

A close second with a percentage increase of 436.2 per cent and a CAGR of 5.76 per cent.

5.76%

Greater Toronto

CAGD

5.91%

Halifax Regianal Municipality

Top Cities by Home Price Growth (1994-2024)

5.35%

Saskatoon

CAGD

Saskatoon rounded out the top three, with a percentage increase of 377 per cent and a compounded annual rate of return of 5.35 per cent.

Saskatoon

"Each generation of Canadian homeowners—from Baby Boomers to Gen Z—has faced its challenges and obstacles. Today’s trade barriers, high interest rates and stringent lending policies may be overwhelming, but this too shall pass. Historically, dynamics evolve from recovery to expansion, peak to contraction, trough to recovery. Cyclically, the trough is short and gives way to renewed growth. In retrospect, buyers may look back and realize that this period represented the best opportunity in recent years to get into the market at a reduced price point," says Don Kottick, President, REMAX Canada.

canadians Still Believe in Home Ownership

Canada has placed among the top countries for home ownership for decades, and although the country’s position has softened in recent years, Canada still boasts a home-ownership rate of 66 per cent, according to Statistics Canada’s 2021 Census. Certain CMAs continue to outperform the national home-ownership average, including Calgary (70.5 per cent), St. John’s (69.4 per cent), Edmonton (68.7 per cent) and Saskatoon (68.7 per cent). “Given the importance of home ownership, governments should be working to assist would-be homebuyers in the quest to realize the dream,” says Kottick. “The strategy must be multifaceted, integrated, and engage all levels of government in lockstep with private sector partnerships and broader social strategies.”

Broker-Led Proposed Reforms

“Affordability, population growth and supply shortages are the recurring themes shaping residential housing in Canada,” notes Kottick. “While each market exhibits local nuances—Vancouver’s looming condo shortage, Edmonton’s affordability and Halifax’s steep climb in values are just a few examples—the shared pressures unite all major regions. Governments and private-sector players share a great responsibility in shaping Canada’s real estate landscape, addressing the housing crisis and ensuring sustainable urban development.”

Hover over a year to learn more

2010s

2000s

1990s

1980s

The recovery gave way to steady but modest growth, while household debt climbed. Foreign buyer taxes and mortgage stress tests reshaped affordability and demand. Sluggish wage growth left many Canadians struggling to keep pace with rising costs.

Low interest rates after the 2001 downturn supported growth and made borrowing cheaper. The bursting of the tech bubble and SARS briefly slowed the economy. The 2008 global financial crisis caused a dip, but Canada rebounded quickly with stimulus and stable banks.

The early 1990s brought a deep recession with high unemployment and tax increases. A strong Canadian dollar and NAFTA reshaped trade. By the mid-decade, growth returned as the economy stabilized and immigration added momentum.

Canada faced high inflation and rising consumer prices. A stock market crash and global instability shook confidence. Interest rates peaked above 20%, and unemployment stayed in double digits.

2020s

COVID-19 lockdowns triggered stimulus spending, record-low interest rates, and a housing surge. Supply chain bottlenecks and inflation followed, creating affordability challenges. Aggressive rate hikes from 2022 onward cooled markets as immigration hit record highs.

Economic Turning Points in Canada

1980s - 2024

CAGD

Cutting Red Tape & Speeing Supply

Encouraging the Right Type of Housing

Mortgage & Financing Flexibility

Tax Relief for Buyers

Cutting Red Tape & Speeding Supply

Encouring the Right Type of Home

Remove the additional two per cent stress test requirement Allow larger withdrawals from RRSPs and TFSAs for first-time buyers Extend amortization periods for first-time homebuyers.

Mortgage & Financing Flexibility

Tax Relief For Buyers

Remove Land Transfer Taxes on purchases under certain price points Remove GST and HST for all homebuyers on new housing product

Cutting Red Tape & Speeding Supply

Encouraging the Right Type of Housing

Mortgage & Financing Flexibility

Tax Relief for Buyers

Cutting Red Tape & Speeding Supply

Encouraging the Right Type of Housing

Reduce or remove red tape, outdated zoning bylaws and restructure land-use policies. Streamline permit approval process

Mortgage & Financing Flexibility

Tax Relief for Buyers

Cutting Red Tape & Speeding Supply

Encouraging the Right Type of Housing

Incentivize the building of homes that meet the needs of today’s homebuyers, shifting focus to end users over investors. Policies and programs should prioritize first-time purchasers

Tax Relief for Buyers

REMAX examined nine major Canadian urban centres over a 30-year period and found population growth, coupled with policy levers and market events, have long underpinned the Canadian housing market, creating periods of extended growth and contractions in the country’s largest cities.

Housing Market Drivers Report

Population growth and policy levers drive triple-digit price gains from 1994-2024

Read the report

CAGR (Compounded Annual Growth Rate) shows the average annual rate of return over a 30-year period

Barriers to Home ownership

Policy levers – taxation, interest rates and stress test

Over the 30-year span, government levers have had both a positive and negative impact on the country’s housing market. A Bank of Canada hike of several basis points within a short period in 1994 stifled housing market recovery while a relaxation in lending policies between 2006 and 2008 culminated in a record year for real estate activity in 2007. Since then, municipal government intervention has hampered activity, from BC’s Foreign Buyer Tax in 2016, the Empty Homes Tax in 2017 and the Short-Term Rental Accommodations Act introduced in 2023 to Ontario’s Fair Housing Plan, including the Non-Resident Speculation Tax of 2017, Toronto’s Vacant Home Tax of 2023, and the Toronto Municipal Non-Resident Speculation Tax effective in 2025. Ottawa introduced its Vacant Unit Tax in 2023, while Nova Scotia added a Non-Resident Deed Transfer Tax of five per cent in 2022. The federal foreign buyer prohibition was extended until 2027. Canada-wide mortgage stress tests were introduced for insured mortgages in 2016, followed by a more-prohibitive test extended to uninsured mortgages by the Office of the Superintendent of Financial Institutions (OSFI) in 2018. The move served to cool demand and borrowing capacity well after the 2016-2017 run up, and the market was struggling at the time. Few would argue that the many policy levers in recent years were designed as mechanisms of constraint to various ends. Recently, policy changes have begun to address some barriers to home ownership, but they remain far from adequate to remedy the multitude of challenges impacting Canada’s real estate landscape and its many stakeholders.

Expanding existing supply in Canadian housing markets

The Canada Mortgage and Housing Corporation’s Fall Supply Report noted that ongoing construction slowdowns in select Census Metropolitan Areas (CMA) pose risks to future housing supply, workforce retention and affordability. Overall housing starts in seven key CMAs were slightly off units reported in the first half of 2024, while gains in Calgary, Edmonton, Montreal and Ottawa were offset by declines in Toronto, Vancouver and Halifax. The Building Industry and Land Development Association (BILD) recently reported new home sales in the GTA were at lows not seen in decades, with July 2025 sales being the worst on record. “Supply gaps are worsening, and the pace of new construction does not bode well for the future of Canada’s housing markets,” says Kottick. “The chronic undersupply will lock a growing number of potential buyers out of the housing market for longer and perpetuate the affordability crisis as pressure on pricing will remain a near certainty as long as demand outpaces supply. It is possible and necessary to implement measures that protect the ability of young buyers to achieve home ownership.” The timing of the federal government’s launch of a new central agency—Build Canada Homes—to initially oversee affordable housing programs in six communities, including Edmonton, Winnipeg, Toronto, Ottawa, Longueuil and Dartmouth, could not come fast enough. Approximately $13 billion is earmarked for the program, which will fund construction of 4,000 modular homes on public lands beginning in 2026, with the potential to scale up to 45,000.

Accelerated population growth outpaces housing supply during pandemic years

A Global Economic Housing Note prepared by Scotiabank in May 2021 identified a chronic insufficiency in Canada’s housing supply, which has led to the lowest number of housing units per 1,000 residents of any G7 country. Yet Canada led the G7 countries in terms of population growth during the pandemic years—rising 2.7 per cent—and crossing the 40 million threshold in June of 2023. “Immigration and in-migration have been significant housing market drivers over the 30-year period and nowhere was this more evident than in Calgary and Edmonton, where population increased by almost 121 per cent and just under 87 per cent, respectively,” says Kottick. “While the trend was accelerated by the pandemic, the province’s Alberta is Calling advertising campaign drove the engine, highlighting low housing values and financial incentives for skilled workers, ultimately drawing greater investment and job opportunities.”

Affordability, stagnant incomes, supply challenges and demographic shifts constraining young buyers

At present, REMAX brokers reported balanced/moderating conditions in most markets, with affordability being an ongoing issue, despite more favourable conditions including rising inventory levels. Average price escalation continues to outpace wage growth, making it exceedingly difficult for first-time buyers across all regions to enter the market. Many would-be purchasers are challenged by the mortgage stress test, debt burdens, downpayment requirements and carrying costs. Chronic supply shortages at lower price points are driving values higher, while the cancellation of new construction projects have set the stage for tight market conditions in the future. A notable trend in the market includes aging empty-nesters and retirees now competing with first-time buyers for smaller homes, particularly bungalows, in many areas of the country. This competition makes winning a bid even harder for first-timers who are up against better-positioned buyers.

affordability

Population

Supply

POlicy Levers

Innovative Housing Solutions

Mortgage & Finance Flexibility

Tax Relief for Buyers

Cutting Red Tape & Speeding Supply

Encouraging the Right Type of Housing

Innovative Housing Solutions

Address supply of affordable homes as a percentage of available product or new construction.

Regional Snapshot

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read full calgary overview

Market has cooled after pandemic-driven highs. Limited government incentives Entry-level and move-up buyers active in $400K–$600K range. Higher demand for townhomes, starter homes, duplex Boomers and younger buyers seeking bungalows with garage around $800K, especially in North Calgary.

CalGARY

read full edmonton oveview

Market has moderated after a period of strong activity. Balanced conditions now, with fall expected to slightly favour sellers. Multiple offers still occur, mostly in the $400K–$600K range. Buyers showing less urgency compared to pandemic years. Rising inventory, with supply across all price points. Stable house prices due to forward-thinking urban planning.

Edmonton

read full GVA overview

Market is currently balanced; detached & townhomes in higher demand than strata condominiums. Inventory levels have increased; economic uncertainty weighing on market. Buyers are hesitant, waiting for better conditions. Listings linger on the market; sellers wait longer for sales. Offers often include 30-day conditions tied to selling an existing home

greater vancouver Area

read full St. John's overview

Market remains red-hot, with demand outpacing inventory. Activity paused slightly due to upcoming provincial/municipal elections. Average price up 244% over 30 years (4.21% CAGR). Affordability concerns rising despite lower prices relative to national average. Long-term demand outlook is strong, but supply bottlenecks and affordability issues must be addressed

ST. John's

read full saskatoon overview

Strong population growth continues to push up housing demand. Home prices hit new highs, surpassing 2015 peak. Average home price (2024): just under $390K; still highly affordable compared to national average. Local buyers prefer established neighbourhoods. Investors buy older homes to split lots for redevelopment.

Saskatoon

read full winnipeg overview

winnipeg

read full gta overview

Market rebound underway in H2 2025, driven by:Return-to-office mandates Increased investor activity in downtown condos Freehold market recovering slowly; price points around $1M showing stronger activity. Condominium values remain soft but are beginning to move. Severe housing supply shortage, especially compared to G7 averages

greater toronto area

read full ottawa overview

Stable market with measured growth over 30 years. Demand strongest for freehold homes between $500K–$700K. Balanced market but limited supply in entry-level segments frustrates buyers. Homeownership dropped to 65.4% in 2021 from 68.6% in 2011. Opportunity exists to build on abundance of unserviced land to meet demand.

ottawa

read full halifax overview

Halifax has become one of Canada’s most dynamic markets. Market remains a seller’s market, especially at $600K price point. Halifax has become one of Canada’s most dynamic markets. Despite relative affordability, rising costs and limited inventory are pressing concern. Homeownership rate down to 58.6% in 2021 from 64% in 2006.

halifax

About the RE/MAX Network As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 145,000 agents in almost 8,500 offices with a presence in more than 110 countries and territories. REMAX Canada refers to REMAX Canada, Inc., which is an affiliate of RE/MAX, LLC. Nobody in the world sells more real estate than REMAX, as measured by residential transaction sides. REMAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. REMAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network Hospitals® and other charities. To learn more about REMAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from REMAX Canada, please visit blog.remax.ca. Forward looking statements This report includes "forward-looking statements" within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company's results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company's business, the Company's ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company's ability to attract and retain quality franchisees, (6) the Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company's ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company's ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company's website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. SOURCE: REMAX Canada

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Strong equity gains over the past 30 years have left few regretting the leap to home ownership, but obstacles are dimming the dream for future generations, as home-ownership rates decline nationally and in major markets.

Although the journey remains complex and affordability is a significant barrier, reason for optimism remains given the real estate cycle and practical solutions that offer potential to change the current trajectory for young buyers and ease the path to home ownership—providing governments and the private sector act in lockstep.

download the data table

"The findings confirm that home ownership continues to be the greatest driver of wealth, especially at the middle-class level."

NEW LISTINGS

MEDIAN SALE PRICE

HOME INVENTORY

HOME SALES

In September, new listings reversed a three-month decline and increased 4.5% over August 2025 and were up 0.9% year over year.

NEW LISTINGS UPWARD TREND

NEW LISTINGS

HOme Prices VARIED slightly

In September 2025, the median price of a home based of off the 52 metro areas was $439,000, up 2.1% from September 2024, and down 1.3% when compared to August 2025.

MEDIAN SALE PRICE

The number of homes for sale in September 2025 was up 20% from September 2024, and up 3.1% from August 2025.

Inventory kept growing

HOME INVENTORY

Home sales were up by 8.5% from last year and down 4.6% from August 2025. This was the fourth month of 2025 where sales outpaced the previous year.

HOME Sales Were up Year over Year

HOME SALES