Affordability Index Remains Higher Than 2019 Levels

Canadian housing affordability improved for the 11th consecutive quarter in Q2 2026, with the affordability index falling to 41.3%, down from a peak of 54.5% in late 2023. Despite gains from interest rate cuts, home price drops, and income growth, affordability remains above pre-pandemic levels. Further improvement depends mainly on price declines, as interest rates are unlikely to fall soon. Regional disparities persist, with some provinces still facing high prices.