Is Housing Affordability in Canada Finally Turning a Corner?

Over the past few years, housing affordability in Canada has been one of the biggest financial and social challenges for individuals and families across the country. Rising home prices, fluctuating interest rates, and high demand in tight markets have left many feeling locked out of homeownership.

But there are early signs that the tide may be turning.

Six Straight Quarters of Improvement

Recent data shows that housing affordability has improved for six consecutive quarters—a trend we haven’t seen in years. While affordability is still far from ideal, this kind of sustained progress is a meaningful shift in what’s been an otherwise difficult market for buyers.

A big part of this improvement comes down to two factors:

Steady mortgage rates, which have helped create a more predictable borrowing environment.
Strong wage growth, which has slightly increased the purchasing power of Canadians in many regions.

Together, these elements have helped stabilize the cost of buying a typical home. In fact, over the past three months, the overall cost of homeownership has held flat—a small but important step forward after years of climbing prices and tightening budgets.

Back to 2021 Affordability Levels

Today’s affordability metrics are now comparable to what we saw in late 2021. That may not seem far off, but context matters: in 2021, home sales were 30% higher than they are today.

This tells us something significant—the market has room to grow.

With affordability returning to 2021 levels, yet activity still lagging behind, there’s potential for a rebound in home sales if consumer confidence continues to recover. In other words, the fundamentals are improving, and the emotional side of the market—buyer sentiment—is starting to follow.

Is This the Bottom?

Although affordability challenges are still present, especially in large urban centers, many experts believe the worst may be behind us.

April marked a low point in housing sentiment this year. But since then, we’ve seen early signs of recovery in buyer confidence, along with stabilizing prices and steady demand in several markets.

If this momentum continues, the second half of 2025 could see increased activity as buyers re-enter the market, ready to take advantage of improved conditions.

For those who have been waiting for the right time to make a move—whether buying their first home, upgrading, or investing—this may be the opening you’ve been looking for.

What Should Buyers Do Now?

If you’re considering entering the market, now is the time to act strategically. That doesn’t mean rushing in—but rather, taking stock of your financial readiness, understanding the local market dynamics, and exploring the mortgage or financing options available to you.

Here are a few smart steps to consider:

Get pre-approved for a mortgage to understand what you can afford in today’s market.
Research neighborhoods and property types that match your budget and lifestyle needs.
Consult with a professional who can help you build a plan that fits your short- and long-term goals.

The truth is, every market shift creates opportunity—but only for those who are prepared.

Ready to Re-Enter the Market with Confidence?

Navigating Canada’s housing market can be complex, especially after the volatility of recent years. But with affordability starting to improve and early signs of market stabilization, the remainder of 2025 could offer unique chances for buyers who are informed and ready.

Whether you’re planning your next move or just starting to think about what’s possible, now is a great time to start the conversation.

Let’s talk about how you can re-enter the market with a clear strategy and a confident plan.