Ownership costs dropped in nearly every market, with Vancouver, Toronto and Victoria seeing the largest decreases. Yet, these cities remain the country’s least affordable. Regina stood out as the only major market where costs rose slightly.
“Affordability measures are back to historical norms in the Prairies. However, they’re still a long way from more attainable pre-pandemic levels in the rest of the country with some exceptions,” Hogue said.
However, the tailwinds that have driven these gains are fading. “The speed of improvement is likely to slow. We expect further easing in ownership costs, but see the effect of earlier interest rate cuts fading. Decelerating income growth will also dampen buyers’ purchasing power,” Hogue said.
RBC’s analysis points to a cooling labour market and rising unemployment, particularly in Ontario, as key risks. “The ongoing trade war is taking a toll on the province’s manufacturing sector with ripple effects spreading through related industries and supporting services,” Hogue said.
Regional disparities persist as affordability stabilizes
In Vancouver, the affordability measure remains at a punishing 89.2%, the highest in the country. “Property transactions remain suppressed despite modest summer gains, underscoring persistent affordability burdens,” Hogue said.