Ontario housing market set for modest rebound in 2027: report

Ontario's housing market is expected to improve modestly in 2027, with existing home sales rising nearly 5% due to lower prices, higher incomes, and policy support for first-time buyers. However, activity will remain below long-term norms, with average price growth of 2.4%. Interest rates are expected to rise, limiting affordability gains. Housing starts may increase 6%, driven by rental and condo construction, while ground-oriented housing remains weak. Rental conditions should stay balanced with modest rent growth.