Canadian Home Prices Only Have One Path Forward

Canadian housing affordability improved for the 11th consecutive quarter in Q2 2026, with the affordability index dropping to 41.3%, down 2.4 points over the past year. Despite this, housing remains unaffordable for most, with affordability still worse than pre-2020 levels. Improvements stem from rate cuts, price drops, and income growth, but further price declines are likely needed as interest rates are unlikely to fall soon. Most provinces still face high prices near all-time highs.