Latest Inflation Figures Could Mean a Rate Hold , And More than Half of Canadian Renters Plan to Buy a Home in the Future

This week’s top real estate stories.

By Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week. 

Consumer Prices Hold Steady; Will Interest Rates?

If you were holding out hope for some rate cuts this summer, we have some deflating news. Earlier this week, Statistics Canada reported the country’s consumer price index was unchanged in May, matching April’s 1.7%. While less expensive stuff is good for consumers, it may be less so for those looking to purchase or renew a mortgage in the months ahead. That’s because after broad expectations that the Bank of Canada would have to slash interest rates to counter the inflationary effects of tariffs early in the year, the latest data makes a case to keep the current 2.75% rate.

Residential Deconstruction

When buyers stop buying, builders stop building. That’s the story of Canada’s housing market in 2025, which is at one time facing a severe shortage of homes, while also struggling to get shovels in the ground. According to Statistics Canada, April saw the country’s largest monthly drop in residential construction investment since 2021, down by 4.5%, driven by steep declines in multi-unit projects, which declined in all but four provinces and territories. Ontario also saw the steepest drops in both multi-unit and single-family home building. Seasonally adjusted construction has now been down country-wide in four of the last five months.

Affordability Now a Distant Memory

The housing market may be slow, but those hoping a crash can restore affordability shouldn’t hold their breath. That’s because according to a new CMHC report, Canada would need to nearly double its current pace of construction just to hit pre-pandemic affordability levels. Since 2019, the price-to-income ratio in Vancouver has shot up from 71% to 91% and grown from 59% to 74% in Toronto. According to the report, Canada would need about 430,000 to 480,000 new homes each year between now and 2035 to turn back that clock, a far cry from the current pace of about 250,000.

Renters Waiting to Pounce

Like the great predators of the animal kingdom Canada’s renters are stalking their prey, waiting for their opportunity to pounce. According to a new survey by Royal LePage, 54% plan to purchase in the future, and a third of those intend to do so in the next two years. In fact, one in four considered buying before signing their current lease. At the same time, many feel the timing isn’t right, with 40% waiting for prices to drop and 29% hoping to see lower interest rates. Overall, just 30% say they plan to stay out of the housing market indefinitely.

The Terminator Strikes Toronto

Torontonians are saying “hasta la vista” to their hopes of selling a home, as the city sets new records for terminations. New data shows the number of terminated listings in the city has reached a 15-year high as Torontonians fail to attract buyers on judgment day. While some of those cancelled listings may be a sign that sellers are re-listing at lower rates, many are retreating from a difficult market altogether. Though times are tough for those looking to offload property in Toronto, many are also saying “I’ll be back” when the market picks up again.

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