More diverse, more stable economies, stricter lending rules and a basic housing shortage in the Greater Toronto area will all help mitigate the impact of market pullbacks, Canadian mortgage and housing companies said in a new report.
The report said GTA apartment prices were similar to those in the early 1990s, but prices were expected to start rising in several quarters, while the decline in the 1990s was about seven years.
The current market housing shortage is a big factor compared to the speculative overbuilding of the last major economy.
Mortgage stress testing is also mitigating the effect and helping to maintain lower levels of mortgage crime, while banks now need higher apartment bars to pre-sale before construction begins.
CMHC said it sees a more balanced market as the recent sharp decline in apartments means few units will enter the market after 2026.
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Last modified: September 24, 2025
