Canadian Housing Affordability Still Needs Improvement

Housing affordability in Canada has shown some welcome progress—Q2 2026 marks the 11th consecutive quarter of improvement, with affordability now sitting around 41%. This shift has been driven by lower home prices, reduced borrowing costs, and rising incomes. Yet, even with about 13 percentage points gained since the peak, the reality is that home ownership remains a challenge for many; housing costs still consume close to two-fifths of the average household income. It's worth noting: the standard measure here relies on average disposable income, which doesn’t always reflect the lived experience of most families—median income paints a more sobering picture. As someone who blends legal background and real estate expertise, I see these nuances play out daily for buyers and sellers across Alberta. The recent gains largely stem from earlier rate cuts, a roughly 20% national price dip since 2022, and stronger incomes. However, with income growth expected to slow and only limited further relief from interest rates, sustained affordability improvements may depend on additional price adjustments. For those navigating these market shifts—especially in Central Alberta—staying informed and strategic remains essential.