Housing affordability is improving in Canada, especially if you are in the market for a condo. Sharper price corrections in this sector than in other housing types have helped to restore affordability back to levels not seen since before the pandemic, says a new report from Royal Bank of Canada. Nationally the RBC condo affordability measure , the share of income needed to cover homeownership costs, has fallen to 35.2 per cent, less than a percentage point higher than in 2019. A lower measure means improving affordability. In some markets like Toronto and Victoria the index has sunk below pre-pandemic levels. While relief has been widespread, condo affordability does remain elevated in some cities, said RBC economists Robert Hogue and Rachel Battaglia. A population boom and tight supply have led to an “aggressive lift” in prices in Montreal, Quebec City and Halifax which has yet to come down. Montreal’s condo affordability index has topped Toronto’s for the first time in 16 years, while Halifax’s measure is within three percentage points. “That’s the closest Halifax has been to Canada’s second most expensive market in more than a decade,” said the economists. The maritime city’s index still sits 13.6 percentage points above 2019 at 41.6 per cent, one of the largest increases since the pandemic. Of all the cities RBC tracks, Vancouver’s affordability improved the most in the first quarter, down more than nine percentage points from the year before. But that only reverses half of the “massive deterioration seen during the pandemic,” said the economists. Home ownership here still takes 84 per cent of income, making it the least affordable in Canada “by a long shot.” Toronto’s affordability also improved at a faster pace than most other markets, but gains are uneven depending on the housing type. For condos, “the price correction, alongside steadily rising incomes, has helped roll back the pandemic-era affordability deterioration entirely,” said RBC. Single detached homes are another story. This housing consumes more than 80 per cent of a typical household’s pre-tax income, said RBC, “cementing Toronto’s position as Canada’s second least affordable market overall.” RBC also reckons that the time of diminishing ownership costs in Canada is coming to an end. Prices have been stabilizing in most major markets and any mortgage rate relief from the Bank of Canada this year is unlikely. “That means income growth would have to do a lot of the heavy lifting to see additional affordability gains — though labour market softness may limit the scope of that relief,” said Hogue and Battaglia. Sign up here to get Posthaste delivered straight to your inbox. Just in time for Canada Day, a new poll shows that Canadians’ pride in their country has surged in recent years. In the survey by Abacus Data, 77 per cent of respondents said they were proud of being Canadian, up from 68 per cent last year and 65 per cent in 2024 — a 12 percentage point increase in just two years. Ontario showed the most pride in their country at 82 per cent, up 13 points from last year. Alberta at 74 per cent and Quebec at 66 per cent were at the low end of the scale. Canada’s natural beauty, peaceful and safe society, universal healthcare, and reputation for tolerance and inclusivity continue to rank high as sources of pride for Canadians. But this year pollsters noted that there was a new emphasis on identity and sovereignty. Nearly half of proud Canadians say being distinct from the United States makes them proud and 45 per cent point to Canada’s ability to stand up for its interests and sovereignty on the world stage. Happy Canada Day! Today’s Data: Canada’s gross domestic product for April Earnings: Nike Inc., Constellation Brands Inc. Why tracking the return to the office is no longer a thing in Toronto Crude awakening: Why doomsday scenarios of $200 oil didn’t come true Why equity investors may need to think about taking their foot off the gas Most people buy a condo because the sticker price is friendlier than that of a detached home, but what some tend to gloss over is the cost and fallout of condo fees. Mortgage strategist Robert McLister warns that out-of-control condo fees won’t just dent your monthly budget and shrink what a bank will lend you; they can drag down your condo’s resale value. Find out how buyers can keep them in check. Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors. Sign up here. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).McLister on mortgages Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily. Financial Post on YouTube Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more. Today’s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com . 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Posthaste: It’s like the pandemic housing boom never happened in these Canadian markets
