Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canadian Real Estate Prices Back To 2017 Levels After Inflation: BMO
Inflation has been chipping away at Canadian real estate prices, warns BMO. The bank notes prices rolled back to 2021 in nominal terms, but inflation puts prices back to 2017 levels. Affordability remains stretched, but that’s just one of the reasons buyers haven’t returned. It cites generational hesitance and shifting priorities as further contributing factors.
Canadian Incomes Surged, But 71% Expect Life To Worsen In 2026: MNP
Canada’s economy is consistently outperforming, but most expect life to worsen. That was the result of the latest survey from MNP, showing 71% expect things to get worse in the country. Most see housing affordability (59%), inflation (54%), and employment (52%) driving the erosion. The results are somewhat surprising, as the survey itself reveals respondents’ finances are improving. This suggests households see recent improvements as short-lived.
Canadian Real Estate Losses Grow As Correction Enters Second Leg
What correction? After the initial shock in 2022, prices have largely stalled at the national level. That may be changing, as last month saw the second-largest drop for December on record. It was accompanied by a minor pullback in sales and the second-most new listings on record. Weaker demand and soaring supply are combining to create more downward pressure. The result is accelerating losses, with prices now falling again.
Canadian Urbanization Stalls: More People Snub Big Cities
For the first time in decades, Canada’s urbanization rate has stalled. The share of the country’s population living in cities was 74.8% in 2025, unchanged from a year before. It isn’t just due to slowing immigration, but a shifting preference. Last year saw a record share of growth move outside of major cities, a preference shared by new immigrants. The reason is a mystery at this point, but affordability is likely to be one of the biggest drivers.
Canadian Rental Prices Just Posted Their Sharpest Drop In 4 Years
Asking rents across the country just posted the sharpest drop in 4 years, according to rentals.ca data. The average asking rent fell 0.7% to $2,060 per month in December, the lowest since June 2023. It may not be obvious outside of the country’s largest markets, as these areas drive most of the decline. Smaller cities continue to outperform for rents, narrowing the gap with larger markets. That begs the question: Are big cities too cheap, or small cities too expensive?
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