Homes under construction are seen in a new suburb, Friday, Oct. 15, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Home affordability in Canada is beginning to show signs of recovery, according to a new report by RBC Economics. For the third straight quarter, the financial burden of home ownership has eased, offering a glimmer of hope for many prospective buyers.
Despite this progress, the report highlights that home ownership remains a significant challenge. In the third quarter of 2024, the cost of owning a home accounted for 58.4% of the median household income—just below record highs. For comparison, the figure reached an all-time peak of 63.8% in late 2023, when mortgage payments, property taxes, and utilities placed extraordinary pressure on household budgets.
Cities like Vancouver, Victoria, and Toronto saw the most significant improvements in affordability compared to other markets nationwide. However, the situation is far from uniform, with many Canadians still facing considerable financial strain.
Looking ahead, RBC predicts the trend toward greater affordability could continue into 2025. The forecast is based on expectations of interest rate cuts by the Bank of Canada and anticipated growth in household incomes. While these factors could bring some much-needed relief, many households are likely to remain cautious as they navigate ongoing financial challenges.
