Ontario’s housing market stayed weaker than expected in 2026, with historically low sales, cautious buyers, falling prices, and affordability gains still not reviving demand.
Ontario’s new construction faced added pressure from slower population growth, unsold inventory, and high building costs, with historically low activity expected, especially in condo projects.
Toronto’s rental market is expected to keep easing in 2026 as new purpose-built supply arrives, lifting vacancy toward ~4% and slowing asking-rent growth.
Ontario’s outlook still faces stubborn headwinds: economic uncertainty, high mortgage rates, and slow income growth keep many buyers cautious across Ontario in 2026.
Even with current weakness, Greater Toronto was projected to improve after 2026, with stronger resale gains and housing starts increasing in later years.
