Ready to trade the apartment elevator for your own front door? You aren’t the only one eyeing the townhouse market in 2026. The value proposition is hard to ignore: with an average price of $607,000, Canadian townhouses remain 11 percent more affordable than the average residential property, according to November 2025 data from the Canadian Real Estate Association.
So, where is the best place to buy a townhouse right now? Zoocasa analyzed benchmark prices and year-over-year growth to identify the country’s top pockets of opportunity. Here are the townhouse markets that deserve your attention.
Best Place to Buy a Townhouse with Recent Price Drops
For house hunters focused on value, Hamilton–Burlington, Ontario, offers the deepest price cut among major markets. Townhouse prices dropped from $688,100 in 2024 to $625,100 in 2025, a 9.16% decline. That translates to a $63,000 drop in just one year, the most efficient market adjustment on the list and significantly outpacing the national trend, where prices softened by 4.78%.
Although townhouses in Toronto have seen prices drop to $696,300 ( a 7.73% decline), the affordability gap in Hamilton has widened.
Hamilton townhouses are roughly 10.2% cheaper than those in Toronto, offering an average savings of over $70,000. For buyers priced out of the 416, this substantial price drop makes the commute increasingly justifiable.
The “Smart Money” Move: Deep Discounts Without the High Price Tag
But for those trying to balance deep discounts with a lower entry price, Barrie presents a compelling “hybrid” option. While its percentage drop of 8.68% trails slightly behind Hamilton’s, the actual financial barrier to entry is notably lower. Townhouses in Barrie fell from $600,200 to $548,100, offering a discount of roughly $52,100 in just one year. This makes Barrie a strong alternative for buyers who want to capitalize on the cooling market but find Hamilton’s $600k+ price point still slightly out of reach.
Most Stable Place to Invest in a Townhouse
Townhouse prices are more stable outside Ontario. Despite the discounts in the Golden Horseshoe, the title for the absolute lowest price remains firmly out East. Moncton continues to offer the most affordable entry point for townhouses, with prices remaining virtually flat at $242,600 (+0.37%).
Similarly, Regina ($257,800) and Edmonton ($272,400) posted moderate gains of roughly 4 to 6%, yet they remain less than half the price of their Ontario counterparts. For pure affordability, these markets maintain a distinct advantage over central markets that continue to correct but are still comparatively expensive compared to other provinces outside BC.
Meanwhile, Calgary’s townhouse market is experiencing a shift. Following years of steep growth, the market experienced a 4.92% correction, settling at an average of $438,300. For buyers, this is a welcome change and a rare chance to buy for nearly $23,000 less than a year ago.
How Condo Supply Surplus Impacts Townhouse Prices in Biggest Markets
An oversupply of condos in Canada’s two largest housing markets, Vancouver and Toronto, is effectively jamming the “exit door” of the property ladder. According to November 2025 data, Metro Vancouver had 6,401 active condo listings but only 945 sales, creating a massive inventory overhang that is nearly 2.5 times the size of the townhouse stock. A similar bottleneck is forming in the City of Toronto, where 2,207 new units hit the market in November, pushing active listings to 5,339, while sales remain just 880. This surplus leaves thousands of owners in both cities unable to unlock the equity needed to move up.
In Vancouver, the financial leap is particularly steep: the gap between the $714,300 condo benchmark and the $1.06 million townhouse benchmark is over $351,000. In Toronto, while the gap is narrower, with condos averaging $701,259 and townhouses $870,793, transaction volume remains paralyzed by the sheer competition. As sellers in both markets are forced to lower prices to secure a sale, their equity erodes, further diminishing their purchasing power for that next step up.
This hesitation is creating a ripple effect across the country. “As sales volumes remain subdued and inventory remains plentiful, properties are taking longer to sell, and pricing has continued to soften slightly,” Andrew Lis, Greater Vancouver Realtors’ chief economist, said in the latest report.
This sentiment is echoed in Toronto, where the Toronto Regional Real Estate Board has noted that, despite improving economic signals, many buyers remain on the sidelines, awaiting greater certainty regarding external factors, such as the employment market.
Ultimately, until this condo backlog clears, the townhouse markets in both Vancouver and Toronto will remain starved of the upgrader demand they rely on. For first-time buyers eager to enter the market by purchasing a townhouse, this creates a pocket of opportunity not seen for several years.
If you’re considering a move in 2026, success hinges on tailoring your strategy to the hyper-local market dynamics. Start your search today! You might just find an affordable home in the area you’ve been dreaming of.
