After a full decade of challenging affordability in Canada’s housing market, we're now seeing the focus shift from mortgage rates—which are expected to remain steady or even rise in the coming year—to the interplay between home prices and household incomes. As someone who’s spent over 20 years consulting on market trends, and with a master’s in business, I’ve learned that understanding these drivers is crucial for making informed decisions, especially in complex markets like Greater Vancouver. Economists are pointing to slower population growth as a factor that could help ease demand and, in turn, contain prices. At the same time, improvements in the labour market are supporting household incomes, which is a positive sign. Still, unless we see a sustained moderation in home prices, any gains in affordability may be limited. Every conversation I’m having with clients right now is highly specific to their local market—what’s happening in Vancouver or Toronto can look very different from what buyers and sellers are experiencing in Calgary or Edmonton. Careful, tailored analysis remains essential in navigating these shifting conditions.
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