Home prices have softened from their previous peaks in many Canadian markets. Buyers in parts of the GTA have more listings to choose from, more time to make decisions and more negotiating power than they did during the pandemic-era boom.
So why does housing still feel so expensive?
New Statistics Canada data provides part of the answer.
According to the 2024 Canadian Housing Survey, released on September 21, 2026, 23.2% of Canadian households were living in housing considered unaffordable, up from 22.0% in 2022.
Statistics Canada defines housing as unaffordable when a household spends 30% or more of its before-tax income on shelter costs.
In other words:
Nearly one in four Canadian households was spending at least 30% of its income simply to keep a roof overhead.
And the pressure was not limited to renters.
Homeowners with mortgages were one of the groups seeing the largest deterioration.
The Headline Number: 23.2% of Canadian Households
The latest survey found that renters were still much more likely than homeowners to experience affordability problems.
In 2024:
- 33.7% of renters lived in unaffordable housing.
- 17.4% of homeowners were in unaffordable housing.
- Among homeowners who still had a mortgage, that figure climbed to 26.1%, up from 23.6% in 2022.
That last number is particularly important.
Homeownership itself does not automatically mean a household is financially comfortable.
A buyer may successfully qualify for a mortgage and purchase a home, but still spend a very large share of household income on the mortgage, property taxes, insurance, utilities and other housing-related costs.
That is why housing affordability cannot be measured by home price alone.
Mortgage Holders Are Feeling Much More Pressure
One of the most striking findings in the Statistics Canada report involves homeowners with mortgages.
In 2024, 36.2% of mortgage holders said they experienced financial difficulty because of increased mortgage payments, up from 28.3% in 2022.
That helps explain why a softer real estate market does not automatically create an affordable one.
Imagine a property that once sold for $1.1 million is now available for $950,000.
That $150,000 difference matters.
But affordability still depends on:
- mortgage rates;
- down payment;
- household income;
- amortization;
- property taxes;
- Condo fees where applicable;
- home insurance;
- utilities;
- maintenance and repairs.
A lower purchase price can improve affordability, but it is only one part of the monthly calculation.
For many buyers, the more important number is:
What will this home cost me every month?
First-Time Buyers Are Under Pressure Even After They Buy
The report is especially relevant for first-time buyers.
Statistics Canada found that 27.4% of recent first-time homebuyer households were living in unaffordable housing in 2024, compared with 24.9% in 2018.
Even more striking:
34.1% of recent first-time buyers reported financial difficulty caused by increased mortgage payments.
That was more than double the 16.4% reported in 2018.
This highlights an important point for today’s GTA buyers.
Getting approved for the largest possible mortgage is not necessarily the same as comfortably affording the home.
A buyer may technically qualify for a certain amount, but that does not automatically mean the household will be comfortable carrying that payment alongside:
car payments,
childcare,
food,
transportation,
property taxes,
Condo fees,
and other living costs.
For first-time buyers especially, the better question may be:
“What payment can I comfortably carry?”
rather than:
“What is the maximum the bank will lend me?”
Renters Are Still Facing an Even Bigger Affordability Problem
Renters remain the group most likely to experience unaffordable housing.
In 2024, 33.7% of renters spent at least 30% of their before-tax income on shelter costs.
But the situation was even more difficult for renters who had recently moved.
Statistics Canada found that private-market renters who had moved within the previous two years paid an average of:
$1,740 per month
compared with:
$1,290 per month
for tenants who had remained in the same rental for at least two years.
Among recent movers, 40% were living in unaffordable housing, compared with 32.2% of longer-term tenants.
That difference helps explain why renters can feel “stuck.”
Someone who has lived in the same rental for several years may be paying substantially less than what they would face if they moved into another property at current market rent.
This can affect both the rental market and the ownership market.
A renter may want to buy a home, but higher mortgage costs make ownership difficult.
At the same time, moving to a newer or larger rental may also significantly increase monthly housing costs.
Lower Home Prices Don’t Automatically Mean Better Affordability
This is probably the most important takeaway for the real estate market.
Affordability is a relationship between:
Housing Cost ÷ Household Income
—not simply the price of the property.
A home can become cheaper while remaining unaffordable if:
- borrowing costs are high;
- household income does not rise enough;
- property taxes increase;
- Condo fees are high;
- insurance costs increase;
- other household expenses leave less room for housing.
This is also why two buyers looking at exactly the same $900,000 property can have completely different affordability situations.
One household may have:
a large down payment,
two strong incomes,
and very little other debt.
Another may have:
the minimum down payment,
car loans,
childcare expenses,
and only one primary income.
The listing price is identical.
Their actual affordability is not.
What Does This Mean for GTA Buyers?
For Toronto and GTA buyers, the current market offers something that was difficult to find several years ago:
time to compare.
In many market segments, buyers do not need to make decisions within hours simply because there are multiple offers.
That makes it possible to look beyond purchase price.
Before buying, it is worth comparing the total monthly carrying cost of different property types.
For example, a Condo may have a lower purchase price but significant monthly maintenance fees.
A Freehold Townhouse may cost more upfront but have no monthly Condo fee.
An older detached home may provide more land and space, but maintenance and utility costs can be higher.
There is no universally cheapest option.
The right comparison is:
purchase price + financing + taxes + fees + ongoing ownership costs.
That gives buyers a much more realistic picture of affordability.
A $50,000 Discount Doesn’t Always Change the Monthly Payment as Much as You Think
Buyers naturally focus on negotiating the purchase price.
And they should.
But sometimes the difference between two properties becomes surprisingly small once everything is translated into monthly costs.
For example, one property might be $50,000 cheaper but have:
- a significantly higher Condo fee;
- higher property taxes;
- parking that must be rented separately;
- upcoming maintenance;
- or much higher utility costs.
Another property may have a higher purchase price but lower ongoing expenses.
That is why affordability should be evaluated as a complete package rather than a single number on MLS.
What Does This Mean for Sellers?
Affordability pressure also affects sellers.
When buyers are financially stretched, they become more price-sensitive.
A home can be attractive, well located and beautifully renovated, but if its asking price pushes the likely buyer’s monthly carrying cost beyond what they can comfortably manage, the property may sit longer.
That makes accurate pricing especially important.
Sellers should pay attention not only to:
“What did my neighbour sell for last year?”
but also:
“What can buyers realistically finance today?”
In an affordability-sensitive market, a relatively small pricing difference can move a property into or out of a buyer’s realistic budget.
What Does This Mean for Investors?
The data also presents a mixed picture for investors.
On one hand, one-third of renters are already spending a high share of income on housing, suggesting there are limits to how much additional rent some households can absorb.
On the other hand, renters who move are paying considerably more than longer-term tenants, showing that market rents and existing rents can be very different.
For investors, this means a property should not be evaluated only on:
“What is the highest rent I could charge?”
It should also consider:
- local renter incomes;
- competing supply;
- tenant turnover;
- vacancy risk;
- property expenses;
- financing costs;
- long-term rent sustainability.
A higher theoretical rent does not necessarily create a stronger investment if it results in longer vacancy or frequent turnover.
One Important Limitation: This Is 2024 Data Released in 2026
There is an important distinction to keep in mind.
Statistics Canada released these results on September 21, 2026, but the data describes housing conditions in 2024.
The Canadian Housing Survey was conducted from late October 2024 through March 2025 and covers households in Canada’s 10 provinces.
That means the report should not be interpreted as saying:
“Exactly 23.2% of Canadian households are unaffordable today in September 2026.”
Interest rates, home prices, rents and household incomes have changed since 2024.
Instead, the survey gives us an important benchmark showing how widespread affordability pressure had already become—and which groups were experiencing the greatest strain.
That distinction matters when using national statistics to make a real estate decision today.
JDL Realty’s Perspective
The latest affordability data reinforces something buyers sometimes overlook:
A cheaper market is not automatically an affordable market.
Home prices matter.
Interest rates matter.
But so do income, down payment, property taxes, Condo fees, insurance and long-term monthly carrying costs.
For GTA buyers, today’s market can offer opportunities that were difficult to find during the peak years:
more inventory,
more negotiating power,
more time to compare,
and in some segments, lower prices.
But that does not mean every property that has dropped in price is suddenly affordable.
The better approach is to start with a comfortable monthly housing budget and work backward.
At JDL Realty Inc., Brokerage, we help buyers compare not only property prices, but also different communities, housing types, resale and pre-construction options, and the overall cost of ownership.
For sellers, understanding buyer affordability is equally important when deciding how to position and price a property.
And for investors, the growing financial pressure on both renters and mortgage holders is another reminder that sustainable numbers matter more than headline prices.
The Canadian housing market may be softer than it was several years ago.
But affordability remains one of the biggest forces shaping buyer decisions.
Frequently Asked Questions
What does “unaffordable housing” mean in the Statistics Canada report?
Statistics Canada defines housing as unaffordable when a household spends 30% or more of its total before-tax income on shelter costs.
What percentage of Canadian households were living in unaffordable housing?
In 2024, 23.2% of households were above the 30% shelter-cost threshold, up from 22.0% in 2022.
Are renters or homeowners more affected?
Renters were more likely to be in unaffordable housing: 33.7% of renters versus 17.4% of homeowners. Among homeowners with mortgages, however, the rate was considerably higher at 26.1%.
Are first-time homebuyers struggling too?
Yes. Statistics Canada reported that 27.4% of recent first-time homebuyer households were living in unaffordable housing in 2024, while 34.1% reported financial difficulty related to higher mortgage payments.
Does this mean housing affordability is worse today than in 2024?
Not necessarily. The figures describe 2024 conditions and were released in September 2026. Current affordability depends on today’s home prices, borrowing costs, rents and household incomes.
The Bottom Line
The headline is striking:
23.2% of Canadian households were living in unaffordable housing in 2024.
But the bigger message is that affordability pressure is affecting almost every part of the housing market.
Renters are struggling.
Recent movers are paying substantially more.
Mortgage holders are feeling the impact of higher borrowing costs.
And more than one-quarter of recent first-time buyers were already above the traditional affordability threshold.
So for today’s GTA buyer, the question should not simply be:
“Has the price come down?”
It should be:
“Can I comfortably afford the total cost of owning this home?”
That is a much better starting point for a long-term real estate decision.
If you’re considering buying, selling or investing in Toronto or the GTA, JDL Realty can help you compare the numbers behind the listing price and understand how different properties fit your budget and goals.
Contact JDL Realty for a property- and neighbourhood-specific GTA real estate analysis.
Sources: Statistics Canada
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