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The federal government has extended the ban on foreign buyers purchasing existing residential properties until January 1, 2029, while introducing an exemption for newly constructed homes. The ban, first introduced in January 2023, restricts non-Canadians from purchasing residential properties such as houses and condominiums with three or fewer units. However, permanent residents (PR holders) are not subject to the ban and can continue purchasing existing homes in Canada, just like Canadian citizens.

The updated rules will also allow foreign nationals who do not qualify as permanent residents to purchase newly constructed properties. The change is intended to protect housing affordability by keeping existing homes available to Canadians and permanent residents while encouraging additional investment in new housing supply. It also recognizes the role provinces and municipalities play in regulating their local housing markets.

Despite improvements in housing affordability since the pandemic, Canada continues to face a significant housing supply shortage. New housing starts declined from 271,198 units in 2021 to 259,028 in 2025, while estimates suggest the country needs an additional 187,000 to 238,000 homes annually to restore pre-pandemic affordability levels by 2036. The federal budget includes $100 million over three years to help municipalities speed up housing approvals, along with $13 billion in additional funding over 10 years to support affordable housing construction.

Other housing measures include $11.2 billion over four years to address homelessness, including investments in housing, health, mental health and social support services. An additional $3.6 billion will support transitional and supportive housing, while the Canada Housing Benefit will be renewed for another 10 years to help Canadians manage housing costs.

Overall, the new investments will bring the federal housing agency's total funding to $45 billion, with a goal of supporting the construction of 200,000 homes over the next decade. The measures are intended to increase housing supply, improve affordability and provide additional support to Canadians facing housing challenges.

For several years, the rising cost of living has been one of the biggest concerns among Canadians, with food and housing costs consistently ranking as top priorities. Politicians across the country have promised to address affordability, while recent polling shows that 65 per cent of Canadians continue to identify the cost of living as their leading concern. Although it may take years for affordability to fall down the list of priorities, the foundation for more stable long-term inflation is beginning to take shape.

The Bank of Canada has maintained its focus on controlling inflation, with its recent decision to raise the overnight interest rate by 0.25 percentage points, from 2.25 to 2.5 per cent, reinforcing its commitment to keeping inflation within its target range of 1 to 3 per cent. While economists disagree on whether the increase was necessary, the bank's broader strategy has helped bring inflation down significantly. The Consumer Price Index has fallen from its post-pandemic peak of 8.1 per cent to 3.1 per cent, while a key measure of core inflation has declined from 6.1 to 2.5 per cent.

During the pandemic, historically low interest rates and large-scale purchases of financial securities dramatically increased the money supply. Combined with additional lending from major banks, these measures injected substantial amounts of money into the economy. As a result, the money supply grew rapidly, reaching an annual growth rate of more than 14 per cent in 2022, contributing to the sharp rise in inflation. Inflation began to ease only after interest rates increased in 2022 and monetary growth slowed. However, the higher prices established during that period have become embedded in the economy and continue to affect Canadians' cost of living.

Looking ahead, the priority must be preventing another significant increase in inflation and maintaining price stability. Government interventions aimed at improving affordability may offer temporary relief, but they cannot reverse the inflation already built into existing price levels. Instead, maintaining control over inflation and the money supply will be essential to protecting Canadians' purchasing power. Recent economic research has also renewed interest in monetarism, the theory that changes in the money supply play a significant role in driving inflation, particularly following the dramatic increases experienced during the pandemic.

By most indicators, the Bank of Canada has returned to a steady focus on long-term inflation control, with core inflation approaching its target range and money supply growth returning to more normal levels. There is growing discussion among economists and central bankers about placing greater emphasis on money supply when developing monetary policy. While it remains to be seen whether this approach will become a larger part of Canada's future strategy, the pandemic has reinforced the importance of managing monetary growth to prevent another prolonged period of rising prices.

Calgary’s real estate market continued to slow in October 2026, with 1,592 sales recorded, contributing to an almost 11% decline in year-to-date sales. Falling new listings helped reduce inventory levels, which were nearly 5% lower than October 2025. However, market conditions varied by property type, with detached and semi-detached homes remaining relatively balanced while apartment condominiums and row homes faced greater competition and higher supply. Overall, Calgary’s benchmark prices remained close to year-ago levels, although year-to-date prices were nearly 3% lower.

Detached homes recorded 847 sales in October, nearly 16% fewer than the previous year. The benchmark price was $735,100, less than 1% lower than October 2025. Semi-detached homes showed greater stability, with sales improving from September and the benchmark price reaching $685,200, nearly 1% higher than the previous year. Year-to-date prices for semi-detached homes remained relatively unchanged, reflecting tighter market conditions compared with other property types.

Row homes and apartment condominiums continued to experience the greatest downward pressure on prices due to elevated inventory and competition from new homes and rental options. The row-home benchmark price fell to $407,500, more than 5% lower than October 2025, while apartment condominiums reached $288,800, an 8% year-over-year decline and 15% below their August 2024 peak. Apartment condominiums continued to face more than five months of supply, while row homes reached 4.4 months, indicating more buyer-favourable conditions in these segments.

In surrounding communities, Airdrie experienced a 13% year-to-date decline in sales, with its detached benchmark price falling to $587,300 and overall prices down nearly 5% year to date. Cochrane remained stronger in sales, with year-to-date activity nearly 4% higher than in 2025, although its benchmark price declined to $571,100, nearly 2% below the previous year. Both communities faced increased competition and greater supply, contributing to downward pressure on prices.

Okotoks continued to experience relatively balanced conditions, with three months of supply and year-to-date benchmark prices approximately 1% lower than last year. Chestermere faced more elevated inventory, with supply remaining just below six months and its October benchmark price reaching $683,800, more than 3% lower than October 2025. Despite recent price declines, year-to-date prices in both Okotoks and Chestermere were only about 1% below 2025 levels. Overall, Calgary and its surrounding communities offer varying opportunities for buyers, with greater negotiating power in higher-supply markets and more stable conditions in detached and semi-detached segments.