TD Sees Canada's Provincial Housing Market Activity to Remain Subdued This Year

BY MT Newswires | ECONOMIC | 01/21/26 12:08 PM EST

12:08 PM EST, 01/21/2026 (MT Newswires) -- After ending 2025 on a soft note, a gradual, modest recovery in Canadian housing is likely on tap this year, supported by pent-up demand, said TD.

Restraining a stronger recovery will be elevated economic uncertainty, a subdued job market and a leveling off in interest rates with the Bank of Canada likely to stay on the sidelines this year, noted TD.

Markets in Ontario and British Columbia should receive support from pent-up demand and some improvement to affordability, although loose/supply-demand conditions will likely restrain price growth, stated the bank.

Saskatchewan and Manitoba recorded solid price growth in 2025, while softer gains took place in Alberta, amid more balanced conditions.

Easing economic growth is likely to weigh on price gains in the Prairies this year, according to TD.

After relatively firm 2025 performances, cooler economic backdrops and affordability deteriorations should weigh on the rate of price appreciation in the Atlantic and Quebec this year, it added.

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