Canada's Real House Prices More Than Double Since 2005 as Supply Lags Demand, CMHC Says

07:44 AM EDT, 10/21/2026 (MT Newswires) -- Real house prices in Canada have more than doubled since 2005, significantly outpacing growth across most advanced economies, according to research from the Canada Mortgage and Housing Corp. (CMHC) published on Tuesday. Strong population growth, rising incomes and low borrowing costs have supported housing demand, wrote CMHC in the note. However, despite similar demographic trends and rising house prices in Australia, New Zealand, Norway and Sweden, Canada has experienced substantially stronger price growth, it added. The main divergence lies in the widening gap between housing demand and supply, said CMHC. Although construction edged up from 1.2% of Canada's existing housing stock in 2011 to 1.3% in 2022, supply failed to keep pace with demand, particularly from 2017 onward. The imbalance intensified after 2021, with nearly five new residents per housing completion in 2023-24, before the ratio subsequently declined to around 1.53. Canada's housing stock remains relatively small compared with its population, falling below levels in most peer countries and the OECD average, according to CMHC. Although rapid population growth has fuelled demand, limited construction relative to that demand has been a key factor behind persistent house price gains.