Canadian Housing Affordability Still Needs Improvement

As someone who’s worked in Shuswap real estate for over 25 years, I’ve seen first-hand how affordability ebbs and flows. Canada’s latest affordability reading reached around 41% in Q2 2026—marking the 11th straight quarter of improvement. Lower prices, reduced borrowing costs, and rising incomes have all contributed. Yet, even with about 13 percentage points of progress since the recent peak, owning a home remains challenging for many, with housing still taking up roughly two-fifths of the average household’s income. It’s important to note that this measure uses average disposable income, not median—so it may not fully capture what many families are experiencing on the ground. According to a bank economist, the reset we’ve seen comes from earlier rate cuts, a 20% drop in national prices since 2022, and stronger personal incomes. Looking ahead, modest income growth and only limited relief from interest rates mean that further adjustment may have to come from home prices themselves. In my experience guiding clients through changing markets in Salmon Arm, Sicamous, and the wider Shuswap, understanding these shifts is key to making thoughtful decisions.