By Craig Lord
As Parliamentarians spar over how one can make housing extra inexpensive, Ottawa’s fiscal watchdog is reporting important progress in closing that affordability hole nationally — however the image seems very totally different throughout the nation.
Interim Parliamentary Price range Officer Jason Jacques put out an up to date housing report Thursday. The report gauges affordability based mostly on the hole between common dwelling costs and what the everyday family can afford.
That hole narrowed from 80% in September 2023 to 34% in August, the report mentioned.
The PBO mentioned cheaper borrowing prices, stronger wages and decrease dwelling costs are making it simpler for Canadians to afford a house and pay their mortgage.
Dwelling costs peaked in 2022 in the course of the pandemic restoration period however subsequently cooled in lots of markets after the Financial institution of Canada quickly elevated its benchmark rate of interest to above 5 per cent.
As we speak, the coverage charge stands at 2.5% following a sequence of cuts, serving to to deliver down mortgage prices. Dwelling costs, in the meantime, haven’t returned to earlier highs.
Canada’s most costly markets broadly noticed the largest positive factors in affordability over the previous three years, the PBO mentioned.
Probably the most important enhancements have been seen in Toronto and Hamilton, however the PBO famous dwelling costs in these markets are nonetheless nicely above inexpensive ranges.
At 74%, the affordability hole is widest in Halifax, whereas Edmonton’s 4 per cent hole is the smallest of any main metropolitan space included within the evaluation.
Calgary, Montreal and Quebec noticed probably the most deterioration in affordability, however the PBO mentioned the price of carrying a mortgage in these cities remains to be comparatively low.
The report additionally gauged households’ monetary stability based mostly on mortgage debt service ratios — the share of family earnings that goes towards paying off a house mortgage.
The primary half of 2025 has seen “important progress” in restoring housing affordability to 2019 ranges based mostly on mortgage debt service ratios, the PBO mentioned.
Whereas these ratios have improved in Toronto, Vancouver and Victoria, the PBO warned households in these still-expensive markets are extra financially susceptible than these elsewhere in Canada.
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affordability affordability hole craig lord housing affordability Jason Jacques Parliamentary Price range Officer pbo report The Canadian Press
Final modified: October 2, 2025
