Canadian housing affordability has seen steady progress—reaching around 41% in Q2 2026 after eleven consecutive quarters of improvement, thanks to lower home prices, better borrowing rates, and rising incomes. Yet, even with about 13 percentage points gained since the recent peak, homeownership remains a real stretch for many Canadians, with housing costs still taking up about two-fifths of the average household budget. It’s worth noting that these affordability readings are based on average disposable income, which can make the situation appear brighter than it feels for many families, as median incomes may tell a different story. According to a bank economist, the shift has been driven by earlier rate cuts, a significant 20% price drop from the 2022 highs, and stronger personal earnings. As someone who closely follows the Greater Vancouver and Fraser Valley markets, I see these trends reflected in local conversations every day. Looking forward, modest income growth and only limited rate relief mean that further price adjustments may be necessary to improve affordability further. If you’re navigating these changes or looking to understand what they mean for your next move, keeping an eye on both the numbers and the local market pulse is key.
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