Housing affordability remains one of the biggest challenges facing Canadians today. While some regions still offer attainable home prices, many of the country’s largest cities continue to see high housing costs compared to local incomes.
Cities in British Columbia and Ontario remain among the least affordable housing markets in Canada. Markets such as Vancouver, Toronto, and Victoria continue to experience strong demand, limited housing supply, and rising home prices.
At the same time, many smaller cities across the country still offer significantly more affordable housing options, especially in parts of Quebec, Saskatchewan, and Atlantic Canada.
How Housing Affordability Is Measured
A simple way to understand housing affordability is by comparing home prices to household income.
This calculation looks at the average home price in a city and compares it to the average household income in that same city. The result shows roughly how many years of income it would take for a typical household to buy a home.
For example, if the average home costs three times the average yearly income, housing is considered affordable.
In general:
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- 3 times income or less → considered affordable
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- 4–5 times income → getting expensive
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- More than 5 times income → very difficult for many households to afford
In many Canadian cities today, home prices are far more than five times the average household income, which is why affordability has become such a major issue for buyers.
Why Some Cities Are More Expensive
Several factors contribute to rising housing costs in major markets, including:
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- Population growth and immigration
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- Limited housing supply in urban centres
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- High demand near employment hubs
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- Rising construction and land costs
These pressures are especially noticeable in large metropolitan areas, where housing demand often outpaces the availability of homes.
As a result, many buyers are expanding their search to smaller cities where housing prices are lower and homeownership may be more attainable.
More Affordable Options Across Canada
Although some markets remain expensive, Canada still has many cities where housing is comparatively affordable.
Mid-sized cities and regional centres often offer lower home prices, lower population density, and a lower overall cost of living. For buyers willing to consider these locations, homeownership may be far more achievable than in Canada’s largest metropolitan areas.
Top 10 Most Affordable Cities in Canada for 2026
- Trois-Rivières, Quebec
- Thunder Bay, Ontario
- Saint John, New Brunswick
- Regina, Saskatchewan
- Saskatoon, Saskatchewan
- Winnipeg, Manitoba
- Sherbrooke, Quebec
- Fredericton, New Brunswick
- St. John’s, Newfoundland and Labrador
- Edmonton, Alberta
Top 10 Least Affordable Cities in Canada for 2026
- Vancouver, British Columbia
- Toronto, Ontario
- Victoria, British Columbia
- Hamilton, Ontario
- Ottawa, Ontario
- Montreal, Quebec
- Kelowna, British Columbia
- Halifax, Nova Scotia
- Calgary, Alberta
- London, Ontario
Wondering What You Can Afford?
If you’re thinking about purchasing a home in 2026, the Auxilium Mortgage team is here to help. Whether you are a first-time home buyer, someone looking for a reverse mortgage or need a mortgage solution for bad credit.
We can help you understand your budget, explore your mortgage options, and guide you through the home-buying process.
📞 Call 250-590-6520 or email [email protected] to schedule your free consultation.
You can also visit us at #12-Unit 211-2840 Peatt Rd., Victoria, BC during regular business hours. Evening and weekend appointments are available by request.
Sources & Data References
Housing affordability comparisons in this article were compiled using publicly available reports, housing market analyses, and cost-of-living data from the following sources: