The latest report by the Canada Mortgage and Housing Corporation is forecasting record high housing prices and low vacancy rates as supply fails to meet demand across the country.The Canada Mortgage and Housing Corporation is expecting home prices to reach new highs in 2026 and says housing supply still isn't meeting demands across the country. The Canada Mortgage and Housing Corp.
"During this time, the pool of potential homebuyers grew through robust population growth, increased savings and higher incomes," the report said.The Canada Mortgage and Housing Corporation is predicting more tough times for the country's housing market. CMCH economist Michael Mak explains the forecast to the Early Edition's Stephen Quinn.
The agency predicts sales activity from 2025 to 2026 will slightly surpass the past 10-year average but remain below the record levels recorded from 2020 to 2021, due to how expensive housing remains. "Unfavourable financing conditions are expected to make it more difficult for homebuilders to start new rental projects in 2024," CMHC chief economist Bob Dugan said in a statement."We anticipate by 2025-2026 lower interest rates, continued government support, and policies encouraging greater density in urban centres should make more projects viable."
"We actually do see … a record number of under construction inventory. A lot of this has been started in the past few years," he says, adding these projects are expected to finish in the next one to three years. In Quebec, housing starts are expected to grow but remain below post-pandemic levels after a sharp decline in new home construction last year.