Canadian Housing Affordability Still Needs Improvement

Canada’s housing affordability has made steady progress, with the latest numbers showing affordability at about 41% in Q2 2026—the 11th quarter in a row of improvement. This positive trend comes from a combination of lower prices, reduced borrowing costs, and stronger incomes. Even so, the reality for many families is that owning a home still stretches budgets, with housing costs taking up nearly two-fifths of the average household’s income. Keep in mind, these figures use average disposable income rather than the median, which can sometimes make things look a bit rosier than they feel for many households. According to a bank economist, the recent improvements reflect earlier rate cuts, a national price drop of around 20% since 2022, and rising personal incomes. As we look ahead, modest income growth and only limited rate reductions mean that prices will likely need to adjust further for real progress. Working every day in the North Shore and across Vancouver’s lower mainland, I see firsthand how these shifts play out in real time for buyers and sellers.