Canada is reducing its immigration intake by over 900,000 over the next two years, which experts believe could alleviate housing demand pressures but won't resolve the long-term affordability crisis. RBC's chief economist anticipates this will slow household formation, leading to a significant drop in new households and potentially easing rental market pressures, especially in Toronto and Vancouver. In contrast, Canadian rental prices saw their first annual decline since COVID, with a notable drop in average rents in cities like Toronto and Vancouver. Meanwhile, renters are increasingly interested in mid-sized cities, with Winnipeg and Saskatoon emerging as top rental hotspots. In the U.S., rising mortgage rates have severely impacted home affordability, particularly in Buffalo Niagara, where purchasing power has decreased significantly. The overall economic landscape reflects a divergence between Canadian and American markets, with Canada facing unique challenges of oversupply and weak household financials.