The Canadian Real Estate Investor Why Investors Are Fleeing Canadian Real Estate
Feb 3, 2026
Robert Kavcic, Senior economist at BMO specializing in Canada and housing outlooks. He discusses a long, slow move toward affordability. Investors exiting the market and why condos and rentals face extra pressure. How buyer advantage, rising supply, and persistent mortgage costs reshape choices for investors and owners.
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Long, Slow Path To Affordability
- Robert Kavcic forecasts a "long and slow grind" toward housing affordability that will likely take years, not months.
- Prices have fallen ~17% from the 2022 peak but affordability still lags incomes and needs time to correct.
Buyer Vs Seller Markets Vary By City
- A buyer's market has excess supply and gives buyers negotiation power while a seller's market does the opposite.
- Market conditions vary city-by-city; Toronto and Vancouver are deeper buyer markets while affordable regions remain seller-friendly.
Investors Have Shifted Out Of Real Estate
- Investors who fueled the 2021–22 surge have mostly exited because cash yields and cap rates compressed.
- With equities paying competitive returns and lower perceived risk, real estate looks like "dead money" to many investors.