Canada Housing Market

Canada may be struggling with a massive housing shortage, but one major city appears to be bucking the trend.

Edmonton is currently the only large Canadian housing market with no measurable housing supply gap, according to the Canada Mortgage and Housing Corporation’s new Fall 2026 Housing Supply Report.

CMHC says housing construction in Edmonton has generally kept pace with population growth, helping the city remain one of the most affordable major housing markets in Canada.

That puts Edmonton in a dramatically different position from cities like Toronto, Vancouver, Ottawa and Montreal, where CMHC estimates thousands of additional homes need to be built every year to restore affordability to pre-pandemic levels.

Edmonton’s Housing Supply Gap Is Essentially Zero

CMHC estimates how many homes major Canadian cities are currently on track to build and compares that with how many would need to be built to restore housing affordability to 2019 levels by 2036.

For Edmonton, the numbers are almost identical.

The region is projected to build approximately 15,000 homes per year under CMHC’s business-as-usual scenario.

CMHC also estimates Edmonton needs approximately 15,000 homes per year to reach its affordability target.

That leaves Edmonton with a measured annual housing supply gap of zero.

The situation looks very different elsewhere.

CMHC estimates annual supply gaps of approximately:

• Toronto: 20,000 to 26,000 additional homes
• Ottawa: 22,000 to 27,000
• Montreal: 42,000 to 56,000
• Vancouver: 5,000 to 7,000
• Calgary: 4,000 to 5,000
• Edmonton: 0

Nationally, Canada is projected to build around 231,000 homes annually under current trends.

CMHC estimates that would need to increase to approximately 417,000 to 469,000 homes every year to restore affordability to 2019 levels by 2036.

Edmonton stands out as the only major market included in the report where current construction trends already match CMHC’s estimated requirement.

Edmonton Has Been Building A Lot Of Housing

The reason comes down largely to construction.

CMHC says Edmonton has generally managed to build enough housing to keep pace with population growth.

During the first half of 2026, Edmonton recorded approximately 51 housing starts for every 10,000 residents.

That was down from 64 during the same period in 2025, but remained considerably higher than several other major Canadian markets.

Toronto recorded only 19 starts per 10,000 residents during the first half of 2026, while Montreal recorded 30, Ottawa 37 and Vancouver 41.

Calgary remained even higher at 61.

Edmonton’s recent construction boom has created a substantial pipeline of new housing that is now being completed.

More Than 18,500 Edmonton Homes Were Under Construction In August

Edmonton’s construction pipeline remains significant even as the pace of new projects begins to cool.

The latest CMHC construction data shows 18,544 housing units were under construction in Edmonton in August 2026.

Another 5,262 approved units were waiting to begin construction.

CMHC’s Fall Housing Supply Report also found that apartment completions increased 30% during the first half of the year as developers finished projects launched during the recent construction boom.

However, total housing starts fell 20% compared with the first half of 2025.

CMHC says rising rental vacancy rates, slower lease-up activity and broader economic uncertainty are making developers more selective about starting new projects.

Edmonton Condo Construction Is Going Against The National Trend

Another unusual part of Edmonton’s housing market is what’s happening with condominiums.

Across many major Canadian cities, new condo construction has weakened significantly.

Edmonton is moving in the opposite direction.

Condominium apartment starts increased 14% during the first half of 2026 compared with the same period in 2025.

Condos now account for nearly one-quarter of Edmonton apartment starts, according to CMHC.

In 2023, they represented only around 3%.

CMHC says the relative affordability of Edmonton condos continues to make them an attractive ownership option for first-time buyers and people downsizing from larger homes.

Edmonton Is Still One Of Canada’s More Affordable Major Housing Markets

The lack of a measurable supply gap doesn’t mean every Edmonton household can easily afford housing.

CMHC specifically notes that lower-income households continue to face affordability challenges, including a shortage of housing affordable to households with the lowest incomes.

But when looking at the overall market, Edmonton remains relatively affordable compared with many of Canada’s other large cities.

The Greater Edmonton Area’s MLS® benchmark home price was $426,900 in August 2026, according to the REALTORS® Association of Edmonton.

The benchmark was down 0.6% from July and 0.6% compared with August 2025.

Meanwhile, inventory was 15.1% higher than a year earlier, giving buyers more homes to choose from.

There were 2,143 residential sales during August, down 9.8% year over year.

Edmonton Shows What Happens When Construction Keeps Up With Growth

Edmonton’s position is especially notable because Canada’s overall housing shortage remains enormous.

CMHC estimates the country needs roughly 187,000 to 238,000 additional housing starts every year above current projections to restore affordability to pre-pandemic levels by 2036.

Edmonton is currently the major exception.

Its combination of relatively high construction levels and housing supply that has generally kept pace with population growth means CMHC does not currently identify an additional market-housing supply requirement for the city.

Calgary is also moving in that direction, with record construction nearly halving its estimated supply gap.

But Edmonton remains the only large Canadian market in CMHC’s latest assessment with a measured supply gap of zero.

For a country trying to figure out how to build enough homes, Alberta’s capital is becoming a particularly interesting market to watch.

References

CMHC Fall 2026 Housing Supply Report

CMHC: Slowing Home Construction Threatens Recent Affordability Gains

CMHC August 2026 Housing Starts And Construction Data

REALTORS® Association of Edmonton August 2026 Market Statistics