CMHC Forecasts Housing Prices to Rebound by 2026 After 2023 Decline, But Affordability Challenges to Persist

• Home prices could match 2022 peak levels by next year and reach new highs by 2026 per CMHC forecast • Housing starts expected to decline this year before recovering in 2025 and 2026 due to higher interest rates • 137,915 new housing units started construction across 6 major Canadian cities in 2022 • Rental supply not forecast to keep up with demand, leading to higher rents and lower vacancy rates • Home sales and prices likely to rebound 2025-2026 but remain below 2020-2021 records due to high costs