Market update Jan 2026: Softening home sales and rents continue

2025 ended with softening home sales and rental prices, a housing supply beginning to balance with demand, and fewer non-permanent residents – trends we expect to continue into 2026.

• Rentals.ca reports the national average asking rent dipped slightly from $2,105 in October to $2,074 in November, the lowest level since June 2023.

• The average asking rent in Ontario also fell month over month, from $2,353 in October to $2,296 in November.

• According to Rentals.ca, affordability challenges, reduced immigration, and weaker consumer confidence are driving the softer rental demand – a pattern PayProp Insights has been tracking throughout the year.

• Meanwhile, the Canadian Real Estate Association (CREA) reports an average national home price of $682,219 in November – down 1.2% from October and 1.8% year over year.  

• Ontario continues to have among the highest average home prices in the country (second only to British Columbia) at $819,356 – down 1.7% from last month’s average.

• According to CREA, home sales declined 0.6% from October to November.

• Every province except Ontario sits in seller’s market territory based on sales-to-new-listings ratios, leaving Ontario as the lone balanced market.

• The Canada Mortgage and Housing Corporation reports the six-month trend in housing starts decreased 1.7% from October to 264,445 in November.

More rental market headlines

Where’s the housing market headed in 2026? Keep an eye on these seven charts – The Globe and Mail

London landlords offer referral bonuses to woo tenants in softer rental market – CBC

Hamilton landlords allege misuse of Ontario Works housing funds – PayProp blog