Two Ontario cities rank among Canada's most affordable for 2026
Thunder Bay and Windsor-Essex make the top 15 most affordable markets as Canadians increasingly flee expensive urban centres.
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Two Ontario cities have secured spots among Canada's 15 most affordable markets for 2026, offering potential lifelines for residents of Toronto, Vancouver, and Montreal looking to escape costly urban centres.
Thunder Bay ranks third nationally, with just over 20 per cent of a household's monthly income required for the average monthly mortgage payment—an improvement from 2024, when 22.2 per cent was needed. Windsor-Essex claimed the 11th spot, requiring 28.7 per cent of monthly household income for average mortgage payments, down from 36.4 per cent in 2024.
According to Royal LePage's 2026 Most Affordable Canadian Cities Report, affordability challenges and a desire for slower-paced living are pushing residents out of major cities. Over half of respondents (51 per cent) in the greater regions of Toronto, Montreal, and Vancouver said they would consider buying a primary residence in one of Canada's 15 most affordable cities if they could find a job or work remotely.
Among Toronto-area residents surveyed, Edmonton was the top-ranking choice for relocation at 16 per cent, followed by Thunder Bay at 15 per cent, Charlottetown at 14 per cent, and Windsor-Essex at 14 per cent. Younger people are significantly more likely to relocate for affordability: 77 per cent of Gen Z and 56 per cent of Millennials said they'd consider buying in a more affordable city, compared to 51 per cent of Gen X and 34 per cent of Baby Boomers.
Of those surveyed who would consider relocating, 55 per cent cited lower cost of living as the main incentive, 42 per cent mentioned a more relaxed pace of life, and 41 per cent said they wanted to be closer to nature. "Home prices in Canada's largest cities have moderated over the past couple of years, but for many buyers, the math still doesn't work," said Phil Soper, president and CEO of Royal LePage. "As barriers to entry remain high, relocating to a more affordable city is becoming less of a last resort and more of a deliberate strategy."
