The Loonie Hour Canada's Housing Markets are Flooded with Rental Supply
Aug 22, 2025
Canada's housing market faces a condo crash as rental supply surges in major cities. Inflation drops to 1.7% due to falling gas prices, but food costs still bite. A looming mortgage renewal crisis threatens families with rising payments. The decline in foreign investment raises concerns while experts suggest shifting focus to bonds over stocks. Amid all this, personal tales of travel chaos blend humor with serious economic discussions, highlighting the need for a robust investment environment.
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Record National Price Decline
- Canada's national Home Price Index is down 18.5% from the peak, the largest decline on record. This correction far exceeds the GFC decline and masks bigger drops in some local markets.
Life Events Draw Buyers Back
- Move-up buyers are returning because lower prices offset losses on their sale of entry units. Life events force transactions despite overall market weakness.
Rental Supply Flood Coming
- Canada faces a rental supply glut with ~250,000 units under construction from purpose-built and converted presales. Rents and vacancies are already falling in major markets and are likely to decline further amid zero population growth.