Kevin Hughes

OTTAWA — Canada’s homebuilders will continue to face headwinds from higher costs, weaker demand and more unsold homes, particularly in the condominium market, as new home construction is set to decline through 2028. Geopolitical and trade uncertainty and slow population growth will continue to weigh on housing demand, but with pronounced regional differences across the country. This according to the latest Housing Market Outlook (HMO) released by Canada Mortgage and Housing Corporation (CMHC). …At the national level, housing demand is expected to remain low, with sales staying below historical averages and prices showing modest gains after falling in 2025. Elevated rental construction will continue to drive new supply but will moderate over the forecast period. However, regional housing markets vary significantly. Construction and home sales in Ontario and British Columbia will be weaker than their 10-year averages, while remaining above historical averages in the Prairies and Quebec.