Housing Affordability Ranking for Canadian Cities in 2026: The Hard Math

By David R. Chen, CFA | June 20, 2026

The Short Answer: Where Affordability Still Exists

Short Answer: In 2026, housing affordability in Canada is extremely polarized. Vancouver and Toronto remain the most unaffordable cities, requiring price-to-income ratios of 14.2 and 12.2 respectively. For buyers seeking a healthy price-to-income ratio below 4.5, options are limited to the Prairies and select resource-oriented or secondary markets. Regina (3.8), Edmonton (4.3), Saskatoon (4.3), and Trois-Rivières (4.3) represent the only remaining major urban areas where a household earning the median regional income can realistically purchase a median-priced home without spending more than 35% of their pre-tax income on housing.

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The 2026 Housing Affordability Crisis

Affordability is no longer a localized issue confined to Vancouver and Toronto. The dramatic rate hikes of the past few years, combined with sticky municipal and utility costs, have pushed carrying costs to record highs across Canada. Even with home prices correction in some condo sectors, mortgage rates hover near 5.4% for a three-year fixed term. This means that borrowing costs have effectively wiped out any gains from lower purchase prices.

The Bank of Canada overnight rate remains high. This policy has kept the cost of borrowing elevated, forcing many first-time buyers out of the market entirely. Meanwhile, population growth continues to outpace housing completions, sustaining a permanent floor under rental rates. The result is a structural imbalance: rents are rising, while the cost of homeownership is out of reach for average earners.

To understand how we reached this point, we need to look at the hard numbers. We have audited 25 major and mid-sized Canadian cities. We ranked them using three key metrics:

1. Price-to-Income Ratio: The median home price divided by the median household income. A ratio of 3.0 to 4.0 is historically considered healthy.
2. Rent-to-Income Ratio: The average monthly rent for a two-bedroom apartment divided by the median monthly household income. Ratios above 30% represent shelter distress.
3. Monthly Carrying Costs: The monthly cost of a mortgage (assuming a 20% down payment, 25-year amortization, and a 5.4% fixed rate) plus estimated property tax and basic utilities.

Data Sources: Statistics Canada Income Statistics, Canada Mortgage and Housing Corporation (CMHC) Housing Reports, and regional real estate board reports for mid-2026.

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The Complete 2026 Canadian City Affordability Ranking

Below is the definitive ranking of 25 Canadian cities, from the most affordable (lowest price-to-income ratio) to the least affordable (highest ratio).

Rank	City	Province	Median Home Price	Median Household Income	Price-to-Income Ratio	Average 2-Bed Rent	Rent-to-Income Ratio	Affordability Status
1	Regina	SK	$330,000	$86,000	3.8	$1,300	18.1%	Affordable
2	Edmonton	AB	$410,000	$96,000	4.3	$1,550	19.4%	Affordable
3	Saskatoon	SK	$380,000	$88,000	4.3	$1,420	19.4%	Affordable
4	Lethbridge	AB	$360,000	$84,000	4.3	$1,350	19.3%	Affordable
5	Trois-Rivières	QC	$320,000	$74,000	4.3	$1,150	18.6%	Affordable
6	Winnipeg	MB	$390,000	$85,000	4.6	$1,480	20.9%	Moderate
7	Sudbury	ON	$395,000	$86,000	4.6	$1,450	20.2%	Moderate
8	Windsor	ON	$520,000	$82,000	6.3	$1,650	24.1%	Moderately Strained
9	Calgary	AB	$620,000	$98,000	6.3	$1,980	24.2%	Moderately Strained
10	Ottawa	ON	$640,000	$102,000	6.3	$2,020	23.8%	Moderately Strained
11	Halifax	NS	$540,000	$84,000	6.4	$1,800	25.7%	Strained
12	Montreal	QC	$530,000	$81,000	6.5	$1,750	25.9%	Strained
13	Kingston	ON	$590,000	$85,000	6.9	$1,820	25.7%	Strained
14	London	ON	$610,000	$83,000	7.3	$1,850	26.7%	Severely Strained
15	Kitchener	ON	$760,000	$91,000	8.4	$2,000	26.4%	Severely Strained
16	Barrie	ON	$750,000	$87,000	8.6	$1,900	26.2%	Severely Strained
17	Guelph	ON	$790,000	$90,000	8.8	$2,050	27.3%	Severely Strained
18	Nanaimo	BC	$710,000	$80,000	8.9	$1,850	27.8%	Severely Strained
19	Kelowna	BC	$820,000	$85,000	9.6	$2,100	29.6%	Extreme Distress
20	Brampton	ON	$950,000	$93,000	10.2	$2,300	29.7%	Extreme Distress
21	Victoria	BC	$910,000	$87,000	10.5	$2,250	31.0%	Extreme Distress
22	Mississauga	ON	$980,000	$91,000	10.8	$2,400	31.6%	Extreme Distress
23	Toronto	ON	$1,090,000	$89,000	12.2	$2,600	35.1%	Affordability Desert
24	Vancouver	BC	$1,280,000	$90,000	14.2	$2,950	39.3%	Affordability Desert

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Detailed Profiles of the Top 15 Cities

To understand the dynamic in each of these urban centers, let's explore their local economies, housing inventory shifts, and demographic trends.

1. Regina, SK (Rank 1 - The Prairie Sanctuary)

Regina stands as the most affordable city in our 2026 audit. The city’s economy, anchored by mining, agriculture, potash production, and provincial administration, provides a steady stream of middle-class employment.

Unlike the speculative markets of Ontario, Regina has never experienced a rapid boom-and-bust cycle. Its housing inventory consists largely of low-rise single-family detached homes and a modest number of low-rise condo buildings.

A median home price of $330,000 means that first-time buyers can enter the market with a down payment of just $16,500 (under 5% for properties under $500,000) or $66,000 for a full 20% down payment to avoid default insurance.

Renting is also highly affordable here. The average two-bedroom rent of $1,300 takes up just 18.1% of the median household income of $86,000, leaving substantial room for families to save for a future down payment.

2. Edmonton, AB (Rank 2 - The Supply Champion)

Edmonton represents the best-performing major metropolitan area in Canada for housing health. While Calgary has seen its prices surge, Edmonton has kept its market balanced through progressive municipal policies.

The city eliminated minimum parking requirements and allowed multi-unit developments by right years ago. This zoning reform stimulated a continuous supply of townhouse and duplex developments.

Edmonton’s economy is supported by petrochemicals, logistics, and government administration, resulting in a high median household income of $96,000.

With a median home price of $410,000, the price-to-income ratio is a healthy 4.3. The average two-bedroom rent of $1,550 represents just 19.4% of household income, providing a stable path for renters to transition to ownership.

3. Saskatoon, SK (Rank 3 - Potash and Innovation)

Saskatoon’s housing market mirrors Regina's affordability but benefits from a slightly more diverse economy. The presence of the University of Saskatchewan, major mining operations (Cameco and Nutrien), and a growing agricultural technology sector has created a resilient labor market.

Saskatoon's median home price of $380,000 is supported by a median household income of $88,000.

The city has managed to keep pace with housing demand through steady outward development, though the municipal government is actively encouraging infill housing to limit infrastructure costs. Rents are stable, averaging $1,420 for a two-bedroom suite, or 19.4% of median household income.

4. Lethbridge, AB (Rank 4 - The Agricultural Anchor)

Lethbridge, located in southern Alberta, enjoys a highly stable economy driven by agriculture, food processing, healthcare, and education. The University of Lethbridge and Lethbridge College ensure a steady rental demand, yet the overall purchase market remains highly affordable.

With a median home price of $360,000 and a median household income of $84,000, the price-to-income ratio sits at 4.3.

Lethbridge has avoided the dramatic price swings of larger Alberta cities. Rents average $1,350 for a two-bedroom apartment, representing 19.3% of median household income, making it a highly attractive destination for young families and retirees looking to downsize.

5. Trois-Rivières, QC (Rank 5 - The Cultural Haven)

Trois-Rivières, situated along the St. Lawrence River between Montreal and Quebec City, is the most affordable market in Quebec. Its economy is built on logistics, paper manufacturing, university education, and a growing tourism sector.

While the median household income of $74,000 is the lowest in our audit, home prices are also low at $320,000. This results in a price-to-income ratio of 4.3.

Renting in Trois-Rivières is incredibly cheap compared to the rest of Canada, with a two-bedroom apartment costing an average of $1,150 per month (18.6% of median income). The main challenge for buyers here is the older age of the housing stock, which often requires significant maintenance capital.

6. Winnipeg, MB (Rank 6 - The Diversified Bastion)

Winnipeg’s housing market is known for its stability. The city's economy is highly diversified, spanning manufacturing, transportation, finance, agriculture, and public services.

With no single industry dominating the landscape, Winnipeg has avoided major housing bubbles. The median home price is $390,000, and the median household income is $85,000, yielding a price-to-income ratio of 4.6.

The rental market has seen some pressure due to immigration, but the average two-bedroom rent remains manageable at $1,480 (20.9% of median income). Winnipeg's housing market is currently experiencing steady demand from buyers who value low volatility.

7. Sudbury, ON (Rank 7 - Northern Ontario's Resource Hub)

Sudbury is the most affordable city in Ontario. Known for its nickel mining operations, Sudbury has worked to diversify its economy into health sciences, education, and government services.

A median home price of $395,000 combined with a median household income of $86,000 results in a price-to-income ratio of 4.6.

Sudbury became a popular destination for remote workers from Southern Ontario during the pandemic. While this influx pushed prices up, the market has since stabilized. Rents average $1,450 for a two-bedroom suite, taking up 20.2% of household income.

8. Windsor, ON (Rank 8 - The Border City)

Windsor’s housing market is closely linked to its manufacturing sector and its proximity to Detroit. The city’s economy has seen renewed investment in automotive manufacturing and battery technology.

Windsor's median home price of $520,000 is supported by a median household income of $82,000, giving it a price-to-income ratio of 6.3.

Windsor attracted significant speculative investment from GTA buyers looking for cheaper assets, which has pushed the market into strained territory. Rents average $1,650, representing 24.1% of median household income.

9. Calgary, AB (Rank 9 - The Migration Destination)

Calgary’s housing market has undergone a dramatic transformation. For years, Calgary was a highly affordable alternative to Toronto, offering low taxes, high salaries, and affordable detached homes. This reputation triggered an unprecedented wave of interprovincial migration, particularly from Ontario.

As a result, Calgary's median home price has risen to $620,000. While incomes remain high at $98,000, the price-to-income ratio has climbed to 6.3.

The rental market is under severe pressure, with the average two-bedroom rent jumping to $1,980 (24.2% of income). Calgary is rapidly losing its status as an affordability refuge.

10. Ottawa, ON (Rank 10 - The Public Service Anchor)

Ottawa benefits from a highly educated, high-income workforce driven by the federal government and a concentrated technology sector in Kanata. The median household income of $102,000 is the highest in our audit, which helps support a median home price of $640,000.

This results in a price-to-income ratio of 6.3.

However, Ottawa's market is highly competitive. The federal stress test makes it difficult for middle-class public servants to qualify for a mortgage on a detached home, forcing many buyers into the townhouse and condo sectors. Rents are also high, averaging $2,020 for a two-bedroom apartment.

11. Halifax, NS (Rank 11 - The Atlantic Hub)

Halifax has experienced rapid population growth, driven by international immigration and remote workers seeking a coastal lifestyle. This sudden demand has put immense strain on the local housing stock.

The median home price has climbed to $540,000, while local median incomes remain lower at $84,000, producing a price-to-income ratio of 6.4.

The rental market in Halifax is exceptionally tight, with low vacancy rates driving the average two-bedroom rent to $1,800 per month (25.7% of median income).

12. Montreal, QC (Rank 12 - Rising Rents and Infill Pressure)

Montreal has long been celebrated for its European flair and affordable rental housing. However, the last few years have seen a steady erosion of this affordability.

The median home price has risen to $530,000, while the median household income is $81,000, resulting in a price-to-income ratio of 6.5.

Rents have climbed significantly, with a two-bedroom apartment now costing an average of $1,750 per month (25.9% of income). The city's aging infrastructure and high municipal tax rates add to the carrying costs of homeownership.

13. Kingston, ON (Rank 13 - The Institutional Center)

Kingston’s housing market is dominated by its institutions: Queen’s University, the Royal Military College, and a large concentration of healthcare facilities. This institutional base provides stable employment but also creates a permanent demand for rental housing.

Kingston's median home price is $590,000, and the median household income is $85,000, yielding a price-to-income ratio of 6.9.

Rents are high, averaging $1,820 for a two-bedroom suite, as students and young professionals compete for limited housing options.

14. London, ON (Rank 14 - The GTA Spillover Reset)

London, Ontario, was one of the primary targets for GTA buyers during the remote-work boom. Prices surged to historic highs before experiencing a sharp correction when interest rates rose.

In 2026, the median home price stands at $610,000, while the median household income is $83,000. This produces a price-to-income ratio of 7.3.

While prices have corrected from their peak, London remains severely strained for local buyers. Rents average $1,850 for a two-bedroom apartment, representing 26.7% of median household income.

15. Kitchener-Waterloo, ON (Rank 15 - The Tech Corridor)

Kitchener-Waterloo is Canada's technology hub, home to major offices for Google, OpenText, and hundreds of startups. The presence of the University of Waterloo and Wilfrid Laurier University adds to the economic activity.

This tech concentration has driven significant wealth into the local housing market. The median home price has reached $760,000, while the median household income is $91,000, producing a price-to-income ratio of 8.4.

Rents are elevated, averaging $2,000 for a two-bedroom suite. First-time buyers in Kitchener face intense competition, particularly for low-rise detached and semi-detached properties.

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Detailed Profiles of the Least Affordable Cities

Let's look at the remaining ten cities on our list, which represent the most challenging markets in the country.

16. Barrie, ON (Rank 16 - The Commuter Belt)

Barrie has transitioned from a summer destination to a key commuter hub for the northern GTA. The city's location along Lake Simcoe makes it attractive, but its proximity to Toronto has driven housing costs up.

With a median home price of $750,000 and a median household income of $87,000, the price-to-income ratio sits at 8.6. Rents average $1,900, taking up 26.2% of gross household income.

17. Guelph, ON (Rank 17 - The University City Squeeze)

Guelph has one of the lowest vacancy rates in Ontario. Its diverse economy, supported by manufacturing, agriculture, biotechnology, and the University of Guelph, keeps demand high.

The median home price is $790,000, and the median household income is $90,000, yielding a price-to-income ratio of 8.8. Rents average $2,050 for a two-bedroom apartment, representing 27.3% of median income.

18. Nanaimo, BC (Rank 18 - Island Inward Migration)

Nanaimo, located on Vancouver Island, has seen a steady influx of retirees and remote workers from Vancouver seeking cheaper housing and a milder climate.

However, this demand has pushed home prices out of reach for many local earners. The median home price is $710,000, while the median household income is $80,000, resulting in a price-to-income ratio of 8.9. Rents average $1,850.

19. Kelowna, BC (Rank 19 - The Okanagan Premium)

Kelowna is a major tourist and retirement destination in the Okanagan Valley. The city attracts substantial wealth from Alberta and the Lower Mainland.

With a median home price of $820,000 and a median household income of $85,000, the price-to-income ratio is a challenging 9.6. Rents average $2,100, taking up 29.6% of gross income.

20. Brampton, ON (Rank 20 - Multi-Generational Carrying Costs)

Brampton’s housing market is unique due to its high density of multi-generational households. While this pooling of incomes helps families purchase larger homes, it also makes them highly sensitive to interest rate changes.

The median home price of $950,000 against a median household income of $93,000 yields a price-to-income ratio of 10.2. Rents are high, averaging $2,300, representing 29.7% of median income.

21. Victoria, BC (Rank 21 - The Capital Constraint)

Victoria’s housing market is constrained by geography and retirement demand. The city is popular with retirees and remote workers, keeping home prices high while local wages remain lower.

The median home price is $910,000, and the median household income is $87,000, producing a price-to-income ratio of 10.5. Rents average $2,250.

22. Mississauga, ON (Rank 22 - Suburban Maturation)

Mississauga has evolved from a suburb into a mature urban center. With little vacant land left for development, new housing is limited to high-density condo towers.

The median home price is $980,000, and the median household income is $91,000, giving it a price-to-income ratio of 10.8. Rents are very high, averaging $2,400 per month (31.6% of median income).

23. Toronto, ON (Rank 23 - The Unaffordable Capital)

Toronto is Canada's financial heart, but its housing market is in deep distress. While the condo sector has seen inventory levels climb and prices drop slightly in 2026, the detached housing segment remains unaffordable for average earners.

The median home price of $1,090,000 against a median household income of $89,000 yields a price-to-income ratio of 12.2. Rents average $2,600, taking up 35.1% of gross household income.

24. Vancouver, BC (Rank 24 - The Global Asset Market)

Vancouver remains the most unaffordable city in Canada. The local housing market is treated as a global asset class, completely detached from local wages.

With a median home price of $1,280,000 and a median household income of $90,000, the price-to-income ratio stands at 14.2. Rents average $2,950, requiring 39.3% of the median household income.

25. The High-Rate Reality of 2026

This polarized housing market presents a massive challenge for first-time buyers. In the most expensive cities, the required income to qualify for a mortgage is double or triple the local median household income. Even in moderately strained cities, buyers must dedicate a significant portion of their pre-tax income to housing, limiting their ability to save or invest elsewhere.

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The Rent vs. Buy Dynamic Across the Ranking

One of the most striking findings of the 2026 data is the gap between renting and owning. In almost every city on our list, renting is currently cheaper than owning on a monthly cash-flow basis.

In Toronto, renting a two-bedroom apartment costs $2,600 per month. Buying the equivalent condo or townhouse carries a monthly cost of over $4,800 when you factor in mortgage payments, property taxes, and condo fees.

This $2,200 monthly difference is what economists call the "ownership premium." In 2026, this premium is at historic highs. It raises a serious question for buyers: does it make sense to buy a home when renting is significantly cheaper?

To run your own numbers and compare the long-term wealth accumulation of renting versus buying, check out our detailed analysis of rent vs buy condo vs house.

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Government Policy and its Impact on City Affordability

Government initiatives have had mixed results. The federal government's focus on building incentives has helped speed up some construction. However, these programs face challenges from high material costs and labor shortages.

The Canada Mortgage and Housing Corporation (CMHC) has introduced programs aimed at helping buyers. But critics point out that increasing borrowing limits or extending amortizations does not solve the underlying supply problem. Instead, it can drive prices higher by adding more demand to a supply-constrained market.

Municipal zoning reforms, such as allowing four-plexes by right in major cities, have started to increase density. However, these changes take years to produce meaningful housing units. For buyers looking for a home today, policy changes offer little immediate relief.

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Advice for First-Time Home Buyers Navigating the 2026 List

If you are a buyer trying to enter the market in 2026, you need a clear strategy.

1. Be Realistic About Location: If you live in Toronto or Vancouver and earn a median income, buying a detached home is mathematically impossible without external help. Consider relocating to markets like Edmonton, Regina, or Winnipeg.
2. Audit Your Carrying Costs: Do not focus solely on the purchase price. Run the numbers on property taxes, condo fees, and utilities. In some cities, these non-mortgage costs can add $1,000 or more to your monthly budget.
3. Evaluate the Rental Alternative: If the ownership premium in your city is high, renting and investing the difference in a TFSA or FHSA may be the faster path to wealth accumulation.
4. Use Specialized Tools: Before making any decisions, run your scenarios through the financial calculators at CalculatorVillage.com to determine your true affordability limit.

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Frequently Asked Questions

What is a healthy price-to-income ratio in Canada?

Historically, a price-to-income ratio of 3.0 to 4.0 is considered healthy and sustainable. In this range, a household can afford a home without spending more than 30% of their income on housing costs. In 2026, only Regina (3.8) qualifies as fully healthy among major markets.

Which province has the most affordable housing?

Saskatchewan and Manitoba are the most affordable provinces on a price-to-income basis. Alberta remains affordable in Edmonton and Lethbridge, though Calgary has become increasingly expensive.

Will Canadian home prices drop in 2026?

We expect prices to remain flat or see minor corrections in highly speculative sectors, such as pre-construction condos in Toronto and Vancouver. However, a major crash is unlikely due to ongoing supply shortages and high immigration-driven demand.

Is it better to rent or buy in Calgary in 2026?

Calgary is currently in a transitional phase. While buying is still more affordable than in Toronto, the ownership premium is growing. Renting may be preferable if you are not planning to stay in the property for at least 7 to 10 years.

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What to Read Next

If you are trying to decide whether to continue renting or jump into homeownership, read our worked financial examples comparing capital growth and carrying costs in Rent vs Buy Condo vs House in 2026. If you are an investor looking to buy, check out our analysis of Investment Property Math in Canada.