Canada’s housing market is straining under the weight of shifting economic conditions, cooling demographic growth, and a sharp reversal in investor sentiment. At the same time, employment insecurity is weighing on consumer confidence, limiting buyers’ willingness to take on new debt. The recent strength in housing starts—particularly in the apartment sector—reflects decisions made when Canada’s population was expanding at record speed. This shift is undermining the outlook for both purpose-built rentals and investor-owned condos that were expected to be rented out. Still, sales volumes are running below levels normally expected relative to Canada’s population, suggesting that confidence has not fully returned.