Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canadian Home Prices Back To 2016 Levels After Inflation, Still Out of Reach
Canadian home prices rose—just not in real (inflation-adjusted) terms. BIS data shows home prices in Canada rose 0.78% in Q2 2026, the first increase in a year—though they remain 19.5% below peak. When adjusted to real terms, they slipped again and have fallen nearly 30% since the peak. Home prices are back to 2016 levels after inflation, but affordability isn’t.
Canadian Rents Surged 20%, But the BoC Can’t Explain How It Started
A new Bank of Canada (BoC) study shows asking rents surged over 20% between Q4 2021 and Q4 2026. The researcher shows that population growth and financing explain most growth over the period. What remains a mystery is the year-over-year surge in rents in early 2020, before the pandemic. Most of this growth is “unexplained,” according to the report. This leaves the question: Did a speculative rental bubble drive policymakers to adopt aggressive population growth?
Canada’s International Student Drop Offset By Domestic Surge
Domestic postsecondary enrollment surged in Canada, offsetting declines in foreign students. StatCan data shows total postsecondary enrollment grew 0.14% (+3.2k) to a record 2.35 million in the 2024/25 school year. A breakdown shows international students fell 6.9% (-39.6k) after the recent policy changes. However, domestic enrollment saw growth hit a 14-year high, offsetting the drop.
Canadian GDP Stalls, But Revisions Add 1 In 10 Dollars of 2026 Growth
Canadian GDP was flat in July, but the economy got bigger anyway after revisions. StatCan revisions added 0.1% more than reported growth in 2026. The revision is within the agency’s normal tolerance range, and only worth mentioning due to the slow recent growth reported. The revisions represent roughly 1 in 10 dollars added to GDP year to date.
Canadian Mortgage Arrears Have Skyrocketed 96% As Bank Portfolios Shrink
Canadian banks continue to see mortgage borrowers fall behind on payments. Mortgages in arrears hit 0.29% in July, up 6 basis points in a year and the highest level since May 2014. At the same time, banks saw the number of mortgages on their books fall to 4.91 million in July, marking a 6-year low. Credit use is rising, fewer accounts are driving the growth, and more are buckling under the loads.
