RBC’s national housing affordability measure is at a four-year best, falling 1.4 percentage-points to 53% in Q1 2026. A decline in the measure means improving affordability.
The report said most regions saw gains, led by Vancouver and Toronto—though both are still Canada’s least affordable markets. Montreal, Quebec City, and St. John’s buck the trend with rising homeownership costs.
The RBC Housing Affordability Measures show the proportion of median pre-tax household income that would be required to cover mortgage payments (principal and interest), property taxes, and utilities based on the benchmark market price for single-family detached homes and condo apartments, as well as for an overall aggregate of all housing types in a given market.
Condos have experienced the most progress. The national condo affordability measure is now 35.2%—within a ppt of its pre-pandemic level—and some markets are even below Q4 2019, said the report.
Further easing in affordability could get slimmer as price declines taper off, and interest rates have likely passed cyclical lows, limiting reductions in mortgage cost, it said.
“Homeownership has been improving in Canada since early 2024—particularly for condos. Price corrections have been sharper than other housing types, helping restore affordability back to 2019 levels in many markets. RBC’s national condo affordability measure is 35.2%, less than a ppt from Q4 2019. Some markets have even improved from pre-pandemic conditions. Toronto now sits at 36.1% (down from 38.5% in Q4 2019) and Victoria at 31.8% (versus 32.2% in Q4 2019),” said RBC.
“Though relief has been widespread, there are still markets where condo affordability remains meaningfully elevated from pre-pandemic norms.
Tight supply and the earlier population boom have contributed to an aggressive lift in condo prices in Montreal, Quebec City and Halifax, which have yet to come down meaningfully. “Montreal’s condo affordability index has even crested over Toronto’s for the first time in 16 years. Halifax’s condo affordability measure is closing in on Toronto’s as well with less than 3 ppts of separation. That’s the closest Halifax has been to Canada’s second most expensive market in more than a decade.”
The phase of diminishing ownership costs could be nearing an end. Prices appear to be stabilizing in most major markets, and we don’t see additional interest rate cuts from the Bank of Canada this year, explained RBC.
“That means income growth would have to do a lot of the heavy lifting to see additional affordability gains—though labour market softness may limit the scope of that relief,” it said. “That said, purchasing power shouldn’t materially deteriorate either. Stable prices and interest rates suggest households will see little change to mortgage costs this year. Labour markets are poised to tighten and should eventually support stronger wage growth, but it’s likely a 2027 story once the cyclical downturn passes.
“Relief is emerging for renters as well. Asking rents continue to fall across most markets with Toronto and Vancouver leading the way—mirroring the ownership market where these two cities are also seeing the largest improvements. Population contractions and stretched affordability are weighing on demand most heavily in these markets, supporting relief in both rental and home ownership.”
Read the full report for market-by-market analysis: https://www.rbc.com/en/economics/wp-content/uploads/sites/23/2026/06/Improving-housing-affordability-continues-in-most-Canadian-major-markets-RBC-Economics-Housing-Affordability.pdf