Housing markets slowly returning to pre-pandemic levels after a wild ride

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Summary 

The article explains that Canada’s housing market, after years of sharp fluctuations caused by the pandemic, interest rate hikes, and shifting demand, is now gradually stabilizing and returning to pre-pandemic levels. Housing sales and price growth, which surged during COVID due to low interest rates and increased demand for space, are cooling as higher borrowing costs temper demand. Developers and builders are adjusting to this new environment, but challenges remain—particularly housing affordability, supply constraints, and the gap between new construction starts and population growth. The piece stresses that although volatility is easing, affordability pressures continue, and stability doesn’t mean accessibility for average homebuyers. 

Comment on this Article

Blanket upzoning and the erosion of RCs are sometimes framed as quick fixes to affordability, yet as this article shows, broader market forces—like interest rates, construction costs, and demand cycles—play a much larger role in housing affordability. Blanket rezoning and undermining RC’s does little to address systemic housing pressures and instead risks destabilizing community character without meaningfully improving affordability.