Canada's Housing Affordability Sees Modest Gains in Q2

Canada's housing affordability improved for an eleventh consecutive quarter in Q2 of 2026, according to the Bank of Canada's Housing Affordability Index.

The index dropped to 41.3% in Q2, down from 44.1% a year earlier and significantly lower than its recent peak of 54.5% in Q3 of 2023.

This still leaves Canadian households struggling with mortgage payments and utilities, as the reading remains above levels seen before the pandemic.

BMO Capital Markets chief economist Douglas Porter notes that affordability has not yet returned to normal, citing stagnant incomes and high prices.