Canada’s affordability index saw only a slight uptick in Q2, with a less than 1-point improvement to around 53%—the slowest quarterly progress we’ve seen in almost a year. This small step forward came thanks to income gains, while home prices and borrowing costs held relatively steady across the country, keeping broader affordability in check.
As someone who’s guided buyers and sellers through all kinds of Toronto market cycles, I keep a close watch on these shifts. The economics team points out that this slow recovery could face even more headwinds soon: steady prices and rates aren’t guaranteed, especially with the possibility of higher bond yields and central bank rate hikes on the horizon (potentially by 2027). Even as wage increases and a one-time federal benefit helped households late in Q2, some markets still experienced their first affordability setback in several quarters.
Rising utility costs and potential hikes in ownership expenses mean planning ahead is more important than ever. If you’re thinking about your next move—whether that’s buying, selling, or investing—it helps to have an honest, experienced guide by your side as the landscape evolves.
Leave a Reply