Prairie Power Shift: Winnipeg and Quebec City Top National Charts
New data reveals a dramatic shift in Canada's real estate landscape, with Winnipeg and Quebec City emerging as the country's hottest housing markets. According to the recently published RPS-Wahi Home Price Index, both cities have recorded an impressive 11 per cent year-over-year price growth, tying them for the highest annual appreciation nationwide.
Regional Markets Reshuffle
The study indicates a significant reshuffling of housing market dynamics across the Prairies and beyond. Winnipeg and Regina have now overtaken Calgary and Edmonton as the most active markets in the Prairie region. Regina secured the third position with a seven per cent year-over-year increase, matching Montreal's growth rate.
Meanwhile, Edmonton's housing price index showed a five per cent gain compared to October of the previous year, while Calgary experienced a more modest three per cent increase. This represents a notable change from previous periods when Alberta's major cities typically led regional growth.
Major Markets See Declines
In contrast to the booming markets in Winnipeg and Quebec City, Canada's traditionally dominant housing centers are experiencing declines. Both Vancouver and Toronto saw their price indexes drop by four per cent year over year. Hamilton recorded the third largest percentage decrease at three per cent, reflecting a broader cooling trend in some of Canada's previously hottest markets.
What's Driving Winnipeg's Boom?
The report identifies several key factors behind Winnipeg's remarkable performance. The city's ongoing affordability compared to larger Canadian markets continues to attract buyers. More significantly, Winnipeg is experiencing a drum-tight rental market with purpose-built rental vacancy rates falling below two per cent.
This rental crunch has driven up leasing costs to the point where mortgage payments are often lower than average rents, pushing many renters toward homeownership. The Wahi report specifically noted that this dynamic has created substantial upward pressure on housing prices as demand increases.
Quebec City's Different Story
While Quebec City matches Winnipeg's price growth, the underlying drivers differ significantly. Like Winnipeg, Quebec City maintains relative affordability and benefits from a strong local economy. However, the city has seen a significant increase in new purpose-built rental properties coming to market, meaning rental costs aren't driving homebuyer demand to the same extent.
Instead, Quebec City's price surge stems primarily from severely constrained housing supply. The report highlighted that long-term home starts in Quebec City have hit a 20-year low, while new rental construction is approaching record highs. This supply-demand imbalance continues to push prices upward despite different market conditions than those seen in Winnipeg.
The data, collected through October and published in late November 2025, provides crucial insights for prospective buyers, investors, and policymakers monitoring Canada's evolving housing landscape.
