U.S. and Canada Building Products & Materials - Spring 2026

U.S. Housing Indicators

The U.S. housing market in 2025 continued to be defined by elevated interest rates, limited housing supply and ongoing affordability challenges, even as monetary policy eased modestly late in the year. Despite three federal funds rate cuts, the average 30 year fixed mortgage rate remained high at roughly 6.19% in December 2025, offering only marginal affordability relief and sustaining buyer hesitation, particularly among first time and price sensitive households. As a result, housing activity reflected the lingering effects of prior tightening, reinforcing a shift in demand away from new residential construction and toward repair, remodeling, and replacement spending. Looking ahead, the housing outlook points to gradual improvement rather than a sharp rebound, with easing financial conditions providing incremental support into 2026, while affordability constraints and supply side cost pressures continue to shape demand patterns for building products and materials.

 

Canadian Housing Indicators

The Canadian housing market remained under pressure in late 2025, with the MLS® Home Price Index (HPI) benchmark price declining 4.0% year over year in December, reflecting broad based price softness across all major housing types. Apartments experienced the steepest decline at 5.6%, highlighting acute affordability challenges for first time and urban buyers, while single family homes and townhouses showed relatively greater resilience with declines of 3.7% and 3.6%, respectively. Looking ahead, the national average home price is projected to rise approximately 2.8% in 2026 as interest rates stabilize and price expectations reset, drawing pent up demand—particularly from first time buyers—back into the market. Overall, following several years of volatility, Canada’s housing market appears to be entering a gradual stabilization phase, with modest price appreciation and improved transaction activity expected, albeit tempered by ongoing affordability constraints and regional divergence.

Learn more in our latest U.S. and Canada Building Products & Materials — Spring 2026.