Canada Ranks Among World’s Least Affordable Housing Markets: What This Means for You
A new international report confirms what many Canadians already feel: buying a home in major cities like Vancouver and Toronto is among the hardest in the world. The 2026 Demographia International Housing Affordability report, covering the third quarter of 2025, ranks Canada as one of the least affordable housing markets globally. This directly affects your ability to buy a home, increases financial stress, and makes it harder for first-time buyers and young families to enter the market.
Key Numbers from the Report
The report rates 96 major markets across eight countries using the "median multiple"—the median house price divided by median household income. Here’s how Canadian cities rank:
- Vancouver: Median multiple of 10.8 — rated "impossibly unaffordable" and the least affordable market in Canada and the world.
- Toronto: Median multiple of 7.6 — rated "severely unaffordable."
- Montreal: Median multiple of 5.8 — rated "seriously unaffordable."
- Ottawa: Median multiple of 5.0 — rated "seriously unaffordable."
- Calgary: Median multiple of 4.3 — rated "moderately unaffordable."
- Edmonton: Median multiple of 3.6 — rated "affordable" and tied for third-best globally.
Who Is Affected
- First-time homebuyers: Especially in Vancouver and Toronto, saving for a down payment is nearly impossible without significant family help.
- Young families: Rising prices force families to move farther from city centres, increasing commute times and costs.
- Renters: High home prices push up rents, making it harder to save for a future purchase.
- People in smaller Ontario cities: Unaffordability has spread from Toronto to Kitchener, London, and Guelph as people move outward seeking cheaper options.
- Anyone relying on housing supply: A recent B.C. Supreme Court decision could further reduce housing supply in Vancouver, worsening the crisis.
What You Should Do
- Consider alternative markets: Edmonton stands out as affordable. If you can work remotely or relocate, it may offer a better path to homeownership.
- Explore government programs: Look into the First Home Savings Account (FHSA) — it lets you save up to $40,000 tax-free for a down payment. Also check shared equity mortgages where the government helps with a portion of the purchase price.
- Monitor local housing policies: Pay attention to zoning changes, development approvals, and rent control rules in your city. These affect supply and prices.
- Adjust your expectations: Consider condos or townhouses instead of single-family homes. Or look at neighbourhoods slightly farther from downtown.
- Get pre-approved: Know your budget before you start searching. This helps you act quickly when you find something affordable.
- Save aggressively: Use the FHSA and Tax-Free Savings Account (TFSA) to grow your down payment faster.
Bottom Line
Canada’s housing crisis is among the worst in the world, with Vancouver and Toronto leading the pack. The report shows that unaffordability is spreading to smaller cities, making it harder for ordinary Canadians to buy a home. Edmonton is the only major Canadian city rated affordable. To improve your chances, consider relocating, use government savings programs, and stay informed about local housing policies. Without significant policy action to increase supply and address income stagnation, the situation is likely to get worse.