Homeownership in Canada. Most Affordable in 3 Years
Homeownership in Canada is now the most affordable it has been since 2022, according to a new report from Robert Hogue, assistant chief economist at RBC.
The bank’s aggregate affordability measure fell to 55.1 per cent in the first quarter of 2025, down from 60.7 per cent a year ago.
Lower interest rates, slight price reductions, and steady household income growth contributed to the improvement.
“Prices are still a long way from more attainable pre-pandemic levels,” Hogue said. He said the gains over the past five quarters have only reversed about one-third of the affordability lost during the pandemic.
Most major markets saw ownership costs decline, with Vancouver and Toronto posting the largest improvements. Despite that, they remain the least affordable housing markets in the country. In contrast, affordability worsened in Quebec City, Montreal, and Victoria.
