Ron Butler, a mortgage industry veteran, emphasized the changing landscape of home affordability during a recent parliamentary finance committee session focusing on Canadian household debt. He highlighted the significant shift from past eras when individuals with modest incomes could easily save up the necessary down payment to purchase a property. Butler noted the current challenges faced by individuals in the Greater Toronto Area, where the escalating home prices make it nearly impossible for those earning around $110,000 to accumulate a sufficient down payment for a home priced under a million dollars.
In the years leading up to 2015, a family earning $115,000 annually had a realistic chance at homeownership in Ontario, albeit in areas like Ajax or Burlington. However, the scenario has drastically changed, with today’s $115,000 income earners finding it increasingly difficult to afford any property. According to data from the Canadian Real Estate Association (CREA) in March 2026, the national average home price stood at $673,084, necessitating a minimum down payment of over $42,000. In stark contrast, the average prices in the Greater Toronto Area and Greater Vancouver soared to $1,017,796 and $1,201,123, respectively, requiring minimum down payments of approximately $76,000 and $95,000.
The issue of unaffordable housing is not confined to major cities like Toronto and Vancouver, as affordability challenges have spread to various other regions across the country, as highlighted by Mike Moffatt, the founding director of the University of Ottawa’s Missing Middle Initiative. Moffatt pointed out that certain areas in Quebec, northern Alberta, Saskatchewan, Manitoba, Atlantic Canada, and northern Ontario offer relatively more affordable housing compared to income levels, but these options are becoming scarcer.
The housing affordability dilemma, once localized to Toronto and Vancouver, has now become a nationwide concern, fueled by population movements. Moffatt cited Tillsonburg, Ontario, as a prime example of a region where home prices surged significantly over a decade due to increased migration. The escalating costs of homebuilding pose a challenge to affordability, with the risk of a prolonged period of limited new construction exacerbating the situation. Moffatt stressed the importance of wage growth in tandem with housing price stability to achieve long-term affordability, emphasizing the need for incomes to outpace housing costs to restore balance in the real estate market.
