Canada ranks among world's least affordable housing markets
Vancouver is #1 least affordable globally; Toronto ranks 2nd in Canada with median multiple of 7.6, per Demographia report.
The day's top stories, food & events — every morning at 7. Unsubscribe anytime.
Canada has cemented its place among the world's least affordable housing markets, according to the 2026 Demographia International Housing Affordability report.
The annual report assessed housing affordability in 96 major markets across eight countries—Canada, Australia, China, Ireland, New Zealand, Singapore, the United Kingdom, and the United States. This edition covers the third quarter of 2025.
Housing markets are rated based on median multiple—median house price divided by median household income. Markets with a median multiple of 3.0 or less are considered affordable; 3.1 to 4.0 moderately unaffordable; 4.1 to 5.0 seriously unaffordable; 5.1 to 8.9 severely unaffordable; and 9.0 or higher impossibly unaffordable.
Four of Canada's six major markets are rated severely unaffordable or impossibly unaffordable. Vancouver is the least affordable housing market in Canada and the world (except Hong Kong, Sydney, San Jose, and Adelaide), ranking 92nd globally with an impossibly unaffordable median multiple of 10.8.
"Vancouver has been among the five least affordable major markets in each of the last 18 years," the report notes. A recent B.C. Supreme Court decision could reduce new housing supply and sales, which the report warns will likely "worsen housing affordability in this already exceedingly expensive metropolitan area."
Toronto ranks as Canada's second least affordable housing market, placing 81st globally with a severely unaffordable median multiple of 7.6. Severely unaffordable housing has spread to smaller Ontario markets including Kitchener-Cambridge-Waterloo, Brantford, London, and Guelph, as people move out of Toronto seeking more affordable options.
Montreal is also severely unaffordable with a median multiple of 5.8. Ottawa and Calgary are seriously unaffordable at 5.0 and 4.3 respectively.
Edmonton stands out as an exception, tying for third-best housing affordability with a median multiple of 3.6. "Edmonton has the highest-ranking housing affordability ranking ever achieved by a major market outside the United States in the history of Demographia International Housing Affordability," the report states.
The data underscores the dramatic loss of housing affordability across Canada since the mid-2000s, particularly in the country's two largest cities.