Recent research by Royal LePage has identified Lethbridge, Alberta, as the most affordable city in Canada, with an aggregate house price of $338,700 and an affordability factor of 18.9%, meaning nearly 19% of monthly household income goes towards mortgage payments. Saint John, New Brunswick, follows in second place, despite having the lowest house price at $265,900, due to a lower average household income resulting in a 19.6% affordability factor. Thunder Bay, Ontario, drops from first to third but also shows improved affordability. The study indicates that 61 of 62 major Canadian cities saw improved affordability in 2026 compared to 2024, with Windsor-Essex showing the most significant improvement at a 7.7% decrease in mortgage payment share. Additionally, a survey reveals that over half of Canadians would consider relocating to one of these affordable cities, primarily driven by lower living costs.
Why It Matters
This report highlights a growing trend in Canadian housing affordability, as many urban areas, particularly Toronto and Vancouver, experience price softening due to various economic factors. The housing market’s dynamics are shifting, with lower-cost cities experiencing increased demand. The affordability factor is crucial for many Canadians, particularly younger generations, as they navigate the challenges of rising living costs and stagnant wages. As inflation continues to impact household budgets, understanding where affordability exists becomes vital for potential homebuyers.
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