Story perspectives

Canadian Housing Market 'Frozen' Amidst Price Crisis

10/23/2025

Summary

Story summary

The Canadian housing market faces significant challenges as construction and sales slow.
In Toronto, multi-unit starts fell 47%, while Calgary and Montreal rose 30% and 49%.
The market is described as 'frozen' due to high prices and limited affordable options.
Benjamin Tal, CIBC Deputy Chief Economist, says rate cuts are needed to stimulate demand.
The federal government is pushing for more affordable housing initiatives to address the affordability crisis.

History

Historical Context

Canada's housing crisis has roots in the early 1990s recession, when a 30% drop in housing starts left 1.5 million households struggling with affordability. The federal government's withdrawal from housing construction in the 1980s exacerbated the issue. Today, as Toronto's multi-unit starts fell by 47%, lessons from past economic downturns drive renewed efforts for affordable housing initiatives across the country.

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Story summary

The Canadian housing market faces significant challenges as construction and sales slow.
In Toronto, multi-unit starts fell 47%, while Calgary and Montreal rose 30% and 49%.
The market is described as 'frozen' due to high prices and limited affordable options.
Benjamin Tal, CIBC Deputy Chief Economist, says rate cuts are needed to stimulate demand.
The federal government is pushing for more affordable housing initiatives to address the affordability crisis.

1 / 2