Canada's housing affordability continues to be a complex story, with recent data showing an affordability reading of approximately 41% in Q2 2026. This marks the 11th consecutive quarter of improvement—thanks to lower home prices, easing borrowing costs, and rising incomes. Yet, even after an improvement of around 13 percentage points from the recent peak, the reality is that home ownership remains out of reach for many, as housing still consumes nearly two-fifths of the average household’s income. It's important to note that this measure relies on average disposable income—which can paint a rosier picture than many households actually experience, since it doesn’t reflect the median income. An economist pointed out that the improvements stem from earlier interest rate cuts, a roughly 20% drop in national prices since 2022, and stronger personal incomes. However, with income growth now slowing and rate relief limited, the path forward seems to rest more on further price adjustments. Drawing on my 20+ years in consulting and a business master’s, I see the numbers, but I never lose sight of the very real pressures faced by households navigating the Greater Vancouver market.
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