So far in 2026, housing market activity has been weaker than expected, particularly in sales and prices. As economic growth and income gains strengthen in 2027 and 2028, CMHC predicts that buyer confidence should improve, and housing demand should gradually recover from these weak levels. Subdued housing demand will also impact new construction. In this case, housing demand would remain soft for longer. Home sales, prices and construction would recover more slowly, and rental markets would continue to ease as supply outpaces demand.”