Canada’s Affordability Recovery Faces 2027 Pressure

Canada's affordability measure improved by under 1 point in Q2 to ~53%, marking the smallest quarterly gain in nearly a year nationally.
Income growth drove the entire Q2 improvement, while home prices and borrowing costs stayed fairly steady across Canada, limiting broader affordability progress.
The economics team warned this recovery was losing fuel because stable prices and steady rates may not last, especially with upward pressure on longer-term rates.
Wage gains and a one-time federal benefit supported households in Late-Q2, yet some Canadian markets still posted their first affordability setback in several quarters.
Looking ahead, higher bond yields, possible 2027 central bank hikes, and rising utility costs could modestly raise ownership expenses as the new year begins.