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.

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It's a symbol of Canada's commitment to reconciliation with Indigenous communities.
Wearing orange shirts on this day symbolizes respect for survivors and raises awareness about residential schools.
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Canada’s housing market is showing signs of recovery, but it’s shaping up to be measured rather than meteoric. Since early Q2, we’ve seen steady improvements: resales are ticking up, inventory is finding its balance, and prices are either holding steady or softening at a slower pace. According to the latest bank forecasts, home resales are expected to dip by about 4% in 2026—landing near 453,200—while benchmark prices could ease about 2% to $794,200, even as momentum improves. By 2027, projections are a bit brighter: resales may rise roughly 7% to 483,600, and benchmark values could nudge just under 1% higher to $800,700. This points to a market that’s recovering, but without the frenzy of a classic boom.

One of the biggest factors supporting the market is pent-up demand. The bank estimates that over 400,000 Canadian households might not have formed since 2019, as many buyers put plans on hold. The path forward still hinges on affordability, steady economic growth, and growing confidence. It’s also worth noting that rates have likely bottomed out and ongoing trade tensions could impact progress. As someone dedicated to supporting your real estate journey, I keep a close eye on these shifts to help you navigate each step with confidence.

Looking ahead to 2027, the Canadian housing landscape may look quite different than what we've grown used to. According to CMHC, improving incomes and steady economic growth are expected to gradually strengthen market conditions. While home sales are projected to bounce back, activity could still stay below what we saw in the previous decade. CREA is anticipating only modest national price growth—signs of a stabilizing market rather than another dramatic surge. With more inventory on hand and softer demand in certain areas, buyers may find themselves with more room to negotiate. As a Homelife Higher Standards Sales Representative, I’m committed to helping you navigate these evolving opportunities with confidence at every step.

The outlook for Canada’s housing market points to a gradual recovery by 2027. Early signs this year—like improved resale activity, steady inventories, and more stable prices—reflect how changing affordability and employment are restoring some buyer confidence. Many clients tell me they’ve been pausing their search, but with firmer finances and job security, they seem ready to consider their next steps. The forecast suggests we’ll see resales dip by about 4% in 2026, with benchmark prices easing by 2% to around $794K, before both begin to rebound modestly the following year. Low borrowing costs and stable central bank rates could support this, though factors like trade tensions and energy prices still pose risks. By 2027, resales and prices are expected to rise across all provinces, but the recovery may feel uneven—not a sweeping change, but a steady shift. As a Homelife Higher Standards Sales Representative, I stay focused on guiding you through these evolving market conditions with the support you need at every stage.

Development fees have a significant impact on the cost of new homes across Canada—a point that’s top of mind for many families searching for the right fit. According to a national housing agency, reducing these fees could make about 14% more residential projects financially viable. Notably, in cities like Toronto and Vancouver, removing development charges could increase the number of feasible projects by around 10%. For Toronto, this could go a long way toward meeting about half of the city’s stated housing supply goals. When we look at specific examples, Calgary’s fees for a one-bedroom high-rise are about $4,000, while detached homes reach $9,000—still far below Vancouver’s range of $20,000 to $33,000 for similar properties. Of course, these fees help fund essential infrastructure like roads and sewers, so finding the right balance is key. For families exploring larger homes, lower fees could make new builds more competitive in markets where costs often surpass comparable resale options. As a Homelife Higher Standards Sales Representative, I stay on top of these shifts to help guide you through every stage of your home journey.