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Canada’s real estate market is entering a period of reinvention, according to the PwC Canada and Urban Land Institute Emerging Trends report. Instead of relying on traditional condo development, investment is shifting toward purpose-built rentals, senior housing, and student accommodation. These segments are gaining traction as developers respond to high interest rates, affordability challenges, and tariff-related uncertainty.

A major opportunity lies in family-sized rental housing. For years, builders focused on small units, but demand is now rising for larger two- and three-bedroom rentals. Cities like Montreal, Quebec City, and Ottawa are leading this shift, capitalizing on underused retail land and transit-oriented sites. As more rental supply enters the market, several major cities have seen easing rent pressures and even slight declines.

Another emerging trend is the evolution of the capital stack and development models. Private capital—family offices, private REITs, and private lending—is playing a larger role as institutional investment becomes more cautious. Developers are also adopting modular construction to cut timelines and partnering more across sectors, especially in health-related and mixed-use projects. Calgary stands out as a strong market for 2026 due to active construction, new infrastructure, and steady economic growth.

Read the full article on: REAL ESTATE MAGAZINE