Canada’s housing prices outpace other countries: CMHC | NOW Toronto

According to a recent report from the Canada Mortgage and Housing Corporation (CMHC), housing prices in Canada have surged significantly, more than doubling from 2005 to 2025. The CMHC's findings indicate that the International Real House Price Index (RHPI) for Canada rose from a baseline of 100 in 2005 to 201.02 in 2025, with a peak of 243.59 in 2022.

In contrast, other countries experienced much smaller increases in housing prices during the same timeframe. For instance, Australia saw a rise of 79 percent, while Sweden's prices increased by 64.16 percent. The United States recorded a more modest increase of 30.34 percent.

Rishard Rameez, CEO of the homebuying platform Zown, highlighted several factors contributing to Canada's housing affordability crisis. He pointed to a mismatch between population growth and housing development, regulatory barriers, and fluctuating interest rates as key issues. Despite a recent decline in home prices, the rising costs of living and stagnant wages have made it increasingly difficult for many Canadians to achieve homeownership.

The CMHC report suggests that the roots of Canada's housing affordability challenges can be traced back to the early 2000s, when issues first emerged in Vancouver, followed by Toronto in the 2010s. Other prominent cities, including Ottawa, Montreal, and Halifax, have since faced similar challenges.

While housing prices globally have seen an upward trend, Canada has notably outpaced many of its peers, featuring one of the longest periods of growth in housing markets worldwide. The report indicates that Canada, along with Australia and Sweden, experienced a slight decline in housing prices during the 2008 global recession but has seen a steady increase since then, culminating in significant price hikes until 2022.

In comparison, the United States and the United Kingdom experienced several price corrections during the recession but have mostly recovered since 2012, with prices nearing pre-crisis levels. France and Germany have shown consistent but moderate price growth, while Italy and Japan have largely stagnated, which may be attributed to their aging or declining populations.

From 2005 to 2025, Canada's housing prices grew by 101.2 percent, as indicated by the RHPI, reaching a peak in 2022. Conversely, Sweden's RHPI rose by 64.16 percent, and Australia's by 79.03 percent during the same period. The U.S. experienced a 30.34 percent increase, while France saw an 8.5 percent rise, peaking at 24.8 percent in 2022. Japan and Italy were unique in that they recorded price declines of 7.5 percent and 24.95 percent, respectively.

Rameez argues that while general inflation could account for some price increases globally, it does not fully explain Canada's exceptional growth. He suggests that the disparity may stem from structural problems, particularly in policies that encourage population growth without adequately addressing the need for new housing construction. Rameez stated, "This is a combination of a few things, including immigration policies that are not necessarily aligned with housing policies." He emphasized the need for a cohesive approach between these two policy areas to prevent further housing market issues.

As homeownership remains a goal for many Canadians, the increasing housing prices and higher living costs pose significant barriers. Rameez noted that a healthy housing market should allow individuals with stable jobs and reasonable savings the opportunity to purchase a home. He advocates for measures to streamline home construction and reduce financial hurdles for buyers.

However, if these challenges persist, Rameez warned that Canadians might seek homeownership opportunities abroad. Statistics Canada reported that 120,640 citizens and permanent residents emigrated from Canada in 2025, a trend that could be influenced by the desire for more affordable housing options. Rameez pointed out that potential buyers may find better deals in other countries, where the same investment could secure a larger home than in Canada.

In recent years, there has been a noticeable decline in housing prices across Canada, with the country experiencing one of its lowest levels of market activity in the past decade. The future of the housing market remains uncertain, and many Canadians are left wondering if conditions will improve.