Published 23 Oct 2026
Canada's Slowest Population Growth in a Century: What Demographic Change Means for Rents, Wages and Your Plan
The Bank of Canada says aging and lower immigration are reshaping the economy. Here is how to think about it in your own projections.
In an October 8 piece, the Bank of Canada explains how demographic change is reshaping the economy. Population grew just 0.5% in 2025, the slowest pace in more than a century, after reaching as high as 3% a year in the early 2020s. Immigration has fallen since the 2024 cuts to levels, and the median age has climbed from about 26 in 1971 to over 40 today.
Why it matters for households
Housing: fewer arrivals should ease demand pressure on rents and house prices, since construction responds slowly to demand.
Wages: a smaller workforce and more retirements could create labour shortages that raise pay in some sectors.
Spending: older Canadians tend to downsize and spend more on travel, leisure and health care.
Growth: slower population growth means slower overall economic growth, which can affect job and investment conditions.
Planning implications
These are slow-moving trends, not overnight shocks, but they matter for long projections. If you are renting, softer demand may give you more negotiating room at renewal, though local markets vary. If you are planning retirement, remember that health care and home-care costs tend to rise with age, so it is worth giving those categories their own line instead of folding them into general spending.
In AffordaFlow, try a long-range scenario with slower housing cost growth alongside faster growth in health-related expenses, and see how your retirement-year cash flow changes.
Source: Bank of Canada, Demographic changes are reshaping the Canadian economy