Are Housing Costs Going Down in Canada in 2025? Here's the Real Picture

There's been a lot of buzz lately about falling housing costs in Canada, but is it happening? The answer is: it depends. The Canadian housing market in 2025 is showing a mixed picture, with regional differences, rental shifts, and varied trends across home types.

Let’s break down what’s really happening with home prices and rent costs across the country.

Home Prices: A Market in Transition

On a national level, home prices have softened, but they haven’t plummeted. In fact, some areas are seeing increases.

• As of May 2025, the national average home price rose slightly to $691,299, up from $679,866 in April. However, this is still down 1.1% compared to May 2024.

• The benchmark home price — the price of a "typical" home — dropped very slightly by 0.1% month-over-month, and 3.5% year-over-year, now sitting around $701,800.

🔍 Regional highlights:

• British Columbia and Ontario have seen noticeable year-over-year price declines:

  • Ontario: -6.3%

  • BC: -2.2%

• Quebec, Saskatchewan, and Nova Scotia, on the other hand, saw home price increases:

  • Quebec: +9.9%

  • Saskatchewan: +8.5%

  • Nova Scotia: +7.6%

So while some major markets are cooling, others are still heating up, depending largely on local supply, demand, and economic activity.

Rental Market: Some Relief for Renters

Renters may be catching a bit of a break in 2025 — though how much relief varies by city. After years of surging rents due to the pandemic and high immigration, the rental market is showing signs of easing.

📉 Cities with declining rent prices:

• Toronto: ↓ about 5–7% year-over-year

• Vancouver: ↓ more than 3%

• Calgary & Halifax: ↓ 4–8%

📈 Cities with mild increases or stability:

• Montreal, Ottawa, Edmonton: Marginal rent increases, but at a slower pace compared to 2023–24

💡 Why are rents easing?

• Higher rental housing supply (especially new purpose-built rentals)

• Slowed immigration growth

• Increase in vacancy rates and rising number of available units

• Landlords offering move-in incentives (like parking deals or one month free)

🧾 So... Are Housing Costs Down?

Here’s the summary:

In short: yes, some Canadians are seeing lower housing costs, especially renters in urban centers. But for homebuyers, while prices have cooled in some markets, the overall housing landscape remains complex and highly regional.

🔮 Looking Ahead

With the Bank of Canada gradually cutting interest rates, we may see a pickup in housing market activity through the second half of 2025. But affordability will still be a major challenge for many Canadians, particularly first-time buyers and those in urban centers.

If you're in the market to buy or rent, local market conditions matter more than ever. Keep an eye on mortgage rate changes, regional price trends, and supply dynamics when making your next move.

Summary:

• While some home prices have decreased slightly year-over-year nationally and in key provinces like Ontario and British Columbia, others have increased in different regions, causing a mixed overall picture.
• Rental prices in many major markets have softened due to increased supply and reduced demand pressures.
• The housing cost trend for 2025 indicates a degree of stabilization or slight decline in some areas but not a uniform broad-based drop across Canada.
• So, while parts of the housing market, especially in rentals and specific provinces, have seen costs decrease this year, overall housing costs have not universally declined but rather show a mixed regional and sector-specific pattern