Canadian Housing Affordability Still Needs Improvement

Canada's affordability reading reached ~41% in Q2 2026 after an 11th straight quarterly improvement, helped by lower prices, lower borrowing costs, and rising incomes.
Even after ~13 ppts of improvement from the recent peak, ownership stayed difficult nationally, with housing costs still taking roughly two-fifths of avg. household income.
The measure may look somewhat better than many households feel because it uses avg. disposable income, not median income, which can overstate affordability.
A bank economist said the recent reset reflected earlier rate cuts, a ~20% national price decline from the 2022 peak, and stronger personal incomes.
Looking ahead, slow income gains and limited rate relief leave more of the adjustment to prices, making further national declines still possible.