Affordability pressures ease, but higher construction costs challenge housing supply in the North

OTTAWA, ON, July 29, 2026 /CNW/ -- Canada Mortgage and Housing Corporation (CMHC) has released its 2026 Northern Housing Report (NHR), with new analysis showing housing supply remaining constrained in Canada's northern capitals, Whitehorse, Yellowknife, and Iqaluit, as investment in residential construction remained below 2021 levels. Per-capita housing starts remained below the rest of Canada, constrained by high construction costs, limited serviced land, and logistical and labour challenges.

Aled ab Iorwerth, Deputy Chief Economist, CMHC

Despite constrained housing supply, home sales rebounded in Whitehorse and Yellowknife in 2025, supported by public sector hiring in these cities and affordability pressures easing from their peaks in 2023. However, Iqaluit saw weaker home sales amid outflows of working-age residents.

Both market and non-market housing options remained limited in the North in 2025. Rental market conditions remained tight across the three cities, particularly in Yellowknife and Iqaluit, where the vacancy rates were lower even with slower population growth and moderating housing demand.

The NHR highlights the critical role that non-market housing plays in the North, where governments, Indigenous organizations and non-profit providers supply a larger share of housing than elsewhere in Canada. Also included in this report is a Research Spotlight on Indigenous-led and Indigenous-partnered housing innovation, highlighting how community-led approaches to housing design and construction can support resilient, culturally appropriate housing solutions that respond to Northern and Arctic conditions.

"Addressing persistent barriers such as high construction costs, limited serviced land and labour shortages will be essential to improving housing outcomes in the North. At the same time, Indigenous-led and Indigenous-partnered approaches continue to demonstrate the importance of housing solutions that reflect local needs, cultures and Arctic conditions."

- Aled ab Iorwerth, Deputy Chief Economist, CMHC.

The 2026 Northern Housing Report provides insights into the economic, demographic and housing market trends shaping housing affordability, supply and suitability across Canada's territorial capitals.

Read the full 2026 Northern Housing Report on the CMHC website.

For 80 years, CMHC has been the foundation of Canada's housing system, promoting stability and sustainability. CMHC's mortgage insurance products support access to home ownership and the creation and maintenance of rental supply. CMHC research and data help inform housing policy. By facilitating cooperation between all levels of government, private and non-profit sectors, CMHC contributes to advancing housing affordability, equity, and climate compatibility. CMHC actively supports the Government of Canada in delivering on its commitment to make housing more affordable.

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SOURCE Canada Mortgage and Housing Corporation (CMHC)

For more information or to request an interview with Aled ab Iorwerth please contact CMHC Media Relations: [email protected]