The Public Sector Pension Investment Board (PSP) recorded a C$2.1 billion hit in its real‑estate holdings for fiscal 2026, the only asset class to post a loss. The decline mirrors a growing trend of capital moving toward infrastructure and other higher‑yield sectors in a market that has seen steady outflows from residential properties.

PSP attributes the slump to a combination of residential oversupply and tight domestic immigration policy, which have tightened demand for new housing. The board’s annual report notes a 7.3% return across the entire portfolio in 2026, but real‑estate losses offset gains in other sectors. This shift signals deeper structural pressures on the Canadian housing market.