Toronto’s real estate market in 2026 faces a complex landscape, influenced by a “low hire, low fire” job market. According to Indeed Hiring Lab’s 2026 Canadian Jobs & Hiring Trends Report, the labour market is stable but soft, potentially capping housing demand despite anticipated rate cuts. Ontario’s unemployment rate, at 7.6%, is among the highest in Canada, presenting a challenge to potential homebuyers. Nationally, layoff rates are down 9% while hiring rates are down 22% compared to pre-pandemic averages, indicating a stagnant job market. While the Bank of Canada’s policy rate ended 2025 at 2.25%, expectations of future rate hikes are growing, adding further uncertainty. With population growth potentially turning negative and AI reshaping the job market, originations are likely to be driven by targeted demand rather than a broad surge in buying power. Read the full analysis on mpamag.com to understand the implications for GTA real estate.
Read the original story here: https://www.mpamag.com/ca/mortgage-industry/industry-trends/low-hire-low-fire-jobs-market-tightens-screws-on-mortgage-borrowers/560888
