Canada’s Housing Market Outlook: How Interest Rates and Population Shifts Are Reshaping Demand

Canada’s housing market faces mixed pressures from interest rates, affordability, and population changes. Rental construction is booming, while condo starts decline, tightening future ownership supply. Population growth slows due to fewer non-permanent residents, mainly affecting rental demand. Permanent resident increases mostly reflect status changes, not new arrivals, supporting ownership demand more gradually. Rising rental supply and slower population growth may ease rents, creating varied investment opportunities.