Canadian Housing Affordability Still Needs Improvement

Despite progress, Canadian housing affordability still has a ways to go. In Q2 2026, affordability improved for the 11th quarter in a row—now sitting at around 41%. This shift was fueled by a combination of lower prices, reduced borrowing costs, and rising incomes. Still, even with about 13 percentage points of improvement since the recent peak, owning a home remains a significant challenge across the country, with housing costs taking up about two-fifths of the average household’s income. It’s important to note that this measure is based on average disposable income, not median—so the numbers may seem better than what many households actually experience. According to a bank economist, these improvements stem from earlier rate cuts, a roughly 20% drop in national prices since 2022, and stronger personal incomes. But with only modest income growth and little rate relief expected ahead, further price adjustments may still be on the horizon. As someone who works closely with buyers and sellers in markets like North Vancouver, New Westminster, Coquitlam, Burnaby, and Vancouver West, I see firsthand how these numbers translate into real experiences for families. Navigating affordability in this landscape is complex, but staying informed is a key piece of the puzzle.