Fact Check: Homeownership is out of reach for many Canadians due to rising home prices
What We Know
The claim that homeownership is out of reach for many Canadians due to rising home prices reflects a complex reality. According to the Canadian Real Estate Association (CREA), the national average home price is projected to decline slightly, with a forecasted drop of 1.7% to approximately $677,368 in 2025. This suggests that while prices have been high, they may be stabilizing or even decreasing in some areas.
Conversely, a report from RBC indicates that homeownership is becoming more affordable, noting that the aggregate affordability measure has improved from 60.7% to 55.1% in the first quarter of 2025, largely due to interest rate cuts and slight easing in home prices (RBC). However, it also emphasizes that prices remain significantly above pre-pandemic levels, particularly in major markets like Vancouver and Toronto, where affordability challenges persist (RBC).
Moreover, the Canada Mortgage and Housing Corporation (CMHC) highlights that while some areas may see improvements in affordability, overall economic uncertainties and demographic changes could continue to exert pressure on housing markets, affecting homeownership accessibility.
Analysis
The evidence surrounding the claim presents a mixed picture. On one hand, the CREA's forecast indicates a slight decline in home prices, which could alleviate some affordability issues. However, the overall context remains challenging, particularly in major urban centers where prices are still high, and the affordability measures indicate that many Canadians still face significant barriers to homeownership (CREA, RBC).
RBC's report is particularly noteworthy as it provides a quantitative measure of affordability, showing that while there has been improvement, the situation is still dire in certain markets. The fact that the affordability measure remains above historical averages suggests that many Canadians are still struggling to enter the housing market (RBC).
Additionally, the CMHC's outlook points to broader economic factors, such as potential trade policy changes and immigration levels, which could further complicate the housing market and impact affordability (CMHC). This indicates that while there may be some relief in certain areas, the overall landscape remains precarious.
In assessing the reliability of these sources, RBC and CMHC are reputable institutions with a strong track record in economic analysis and housing market research. Their reports are based on comprehensive data and provide a nuanced view of the housing market, making them credible sources for understanding the complexities of homeownership in Canada.
Conclusion
The claim that "homeownership is out of reach for many Canadians due to rising home prices" is Partially True. While there are signs of improving affordability in some regions and a slight decline in average home prices, significant barriers remain, particularly in major urban areas where prices are still high. The mixed evidence suggests that while some Canadians may find opportunities for homeownership, many others continue to face substantial challenges due to ongoing affordability issues.
Sources
- CREA cuts 2025 forecast again but says home sales are ... Yahoo Finance
- Owning a home in Canada is the most affordable it's been in ... RBC
- 2025 Housing Market Outlook - Canada Mortgage and Housing ... CMHC
