Housing affordability in Canada continues to be a major concern, even as we see some progress. The latest numbers show that affordability reached around 41% in Q2 2026—this marks the 11th consecutive quarter of improvement, thanks to lower prices, reduced borrowing costs, and rising incomes. Still, for many families across the country, the dream of homeownership remains challenging, with housing costs taking up about two-fifths of the average household’s income. It’s important to note that these figures are based on average disposable income rather than median income, so the reality on the ground may feel tighter for many.
A leading bank economist points out that this reset comes after earlier rate cuts, a national price drop of about 20% since the 2022 peak, and stronger personal incomes. However, with income gains slowing and only limited relief from interest rates, any future improvements in affordability may depend on house prices adjusting even further.
As real estate professionals who stay on top of every shift in our local Medicine Hat market and beyond, we know how these national trends can impact our clients’ decisions. Our focus is always on arming buyers and sellers with the most up-to-date information so you can navigate these changes confidently and make the choices that are right for you.
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