Canada combines some of the highest home-price-to-income ratios in the developed world with federal restrictions on foreign buyers. The Canada real estate market 2026 therefore looks different for residents and for non-residents. Compare asking prices on our Canada property for sale page.
Where prices and yields sit
Our legacy city-centre apartment price is about US$7,614 per m² (2023), with a gross yield of 3.9% (2024), price-to-rent of 25.7 and price-to-income of 11. Toronto and Vancouver sit well above the national picture, while the Prairies and Atlantic provinces are far cheaper. The yield is modest, and low single-digit net returns are common.
| Indicator | Value | Year |
|---|---|---|
| Gross rental yield, city centre | 3.9% | 2024 |
| Price-to-rent ratio | 25.7 | 2024 |
| Price-to-income ratio | 11.0 | 2024 |
| GDP growth | 1.7% | 2025 |
| Inflation (CPI) | 2.1% | 2025 |
| Unemployment | 6.9% | 2025 |
Rates, economy and demand
The Bank of Canada's policy rate was 4.25% in our 2024 record, and our legacy mortgage rate is 6.3% (2023). Because most Canadian mortgages are renegotiated every few years, rate changes feed through quickly to households. Unemployment of about 6.9% and growth of 1.7% describe a slower economy, yet population growth through immigration has kept rental demand strong, though policy changes to immigration targets are cooling that tailwind.
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The foreign buyer rules
Federal legislation has restricted purchases of residential property by non-Canadians, with exemptions for some categories such as certain work permit holders, permanent residents and refugees. The measure has been extended and parts have been amended, and provinces add their own foreign-buyer taxes, notably in British Columbia and Ontario. Check the current federal rules and provincial taxes before any commitment. See our consultation guide for Canada and financing overview.
For non-residents, Canada is currently a market to study, not necessarily to enter: check eligibility before anything else.
What owners and eligible buyers look at
Apartments and condos dominate big-city supply, with strata or condominium fees that matter to net yield. Detached houses command premiums in the major metros. Commercial property is outside the ban in most cases but has its own lease and tax issues, and land rules vary by province.
Tax points for non-resident owners
Non-residents who let property in Canada generally face withholding tax on gross rent unless they file to be taxed on net income, and sale proceeds can be subject to a clearance certificate process. Confirm obligations with a cross-border accountant.
Risks and outlook
Risks include high household debt, rate shocks on renewal, rent controls in some provinces and policy volatility. The long-run drivers are immigration, land and construction constraints, and a lack of housing starts. For lower-priced regions, view the cheap listings and under 100k pages; compare with other options in our analysis hub and test cash-flow with the mortgage calculator. If you are eligible, get a mortgage pre-approval, review strata documents closely for pending special assessments, and budget for land transfer tax, legal fees and, if you are a non-resident of Canada for tax purposes, withholding tax on rent and sale proceeds. A cross-border accountant is invaluable.
Last updated 8 October 2026