Hamilton Ontario Housing Market 2026: Prices, Trends, and Affordability Analysis

The residential real estate market in Hamilton, Ontario, one of the largest cities in the Great Lakes region, entered 2026 with moderate price growth following two years of post-pandemic correction. Data from the Realtors Association of Hamilton-Burlington (RAHB) shows a housing market that has stabilized but remains significantly more expensive than it was five years ago, with affordability continuing to challenge first-time buyers.

Current Market Conditions

The benchmark price for a single-family detached home in Hamilton was 762,400 dollars as of January 2026, according to the Canadian Real Estate Association’s MLS Home Price Index. This represents a 3.8 percent increase from January 2025 and a 5.2 percent decrease from the market peak reached in February 2022, when the benchmark price hit 895,000 dollars.

Total residential sales in the Hamilton-Burlington market reached 8,940 units in 2025, a 12 percent increase from 2024 but still 18 percent below the 10-year average of 10,900 annual transactions. The recovery in sales activity reflects the Bank of Canada’s rate-cutting cycle, which brought the overnight rate from 5.0 percent in June 2024 to 3.25 percent by January 2026.

Active listings in Hamilton stood at 2,180 units at the end of January 2026, representing approximately 3.5 months of inventory at the current pace of sales. This places the market in balanced territory. A sellers’ market is generally defined as having less than 2 months of inventory, while a buyers’ market requires more than 6 months.

Neighbourhood Price Variations

Hamilton’s diverse neighbourhoods show significant price variation. The central mountain area, including neighbourhoods like Stoney Creek and Upper Stoney Creek, saw the strongest price growth in 2025 at 5.1 percent, driven by new subdivision development and proximity to the Linc and Red Hill Valley Parkway. Detached homes in this area had a median sale price of 725,000 dollars.

The gentrifying downtown and north end neighbourhoods, including Beasley, Landsdale, and the Barton Street corridor, continue to attract buyers seeking lower entry prices and proximity to the GO Transit Hamilton station. Detached homes in these areas sold for a median of 540,000 dollars in 2025, though prices range widely depending on condition and specific location.

At the upper end, Ancaster and Dundas commanded median detached home prices above 950,000 dollars, reflecting their established suburban character, proximity to conservation areas, and strong school reputations.

Rental Market Pressures

Hamilton’s rental market remains exceptionally tight. The Canada Mortgage and Housing Corporation’s (CMHC) 2025 Rental Market Survey reported a vacancy rate of 1.8 percent for Hamilton’s purpose-built rental stock, below the 3 percent threshold generally considered healthy. The average rent for a two-bedroom apartment reached 1,580 dollars per month, a 7.2 percent increase from the previous year.

The rental supply challenge is being partially addressed by new construction. The City of Hamilton issued building permits for 3,200 new residential units in 2025, of which approximately 1,800 were in multi-residential buildings. However, housing advocates note that new rental construction is concentrated in the market-rate and luxury segments, with limited additions to the affordable housing stock.

Transit and Infrastructure Impact

The Hamilton Light Rail Transit (LRT) project, currently under construction along the King Street-Main Street corridor, is expected to influence property values along the route. Research from Metrolinx’s benefits case analysis projects that properties within 800 metres of LRT stations will experience price premiums of 5 to 10 percent once the line becomes operational, currently targeted for 2029.

The expansion of GO Transit service on the Lakeshore West line, including the planned all-day, two-way service between Hamilton and Toronto, continues to support Hamilton’s role as a bedroom community for Toronto workers. The Hamilton GO station area has seen several major condominium development proposals, including a 35-storey tower approved by city council in 2025.

Affordability Outlook

Despite being more affordable than Toronto, where the detached home benchmark exceeds 1.3 million dollars, Hamilton faces its own affordability challenges. The National Bank of Canada’s Housing Affordability Monitor estimates that a household earning the median income in Hamilton would need to allocate 52 percent of pre-tax income to carry a mortgage on a median-priced detached home, well above the 32 percent threshold recommended by CMHC.

The Bank of Canada’s continued rate cuts are expected to provide some relief to buyers in 2026. Mortgage rate forecasts from the major Canadian banks project that five-year fixed rates will settle in the 3.5 to 4.0 percent range by mid-2026, compared to the 5.5 percent levels seen in early 2024. This improvement in borrowing costs, combined with stable price growth, may gradually improve affordability metrics through the year.

For up-to-date Hamilton housing market statistics, RAHB publishes monthly market reports at rahb.ca. The CMHC Housing Market Information Portal provides rental market data and housing starts information at cmhc-schl.gc.ca.