Fact Check: Housing affordability has changed in Canada.

Fact Check: "Housing affordability has changed in Canada"

What We Know

Housing affordability in Canada has been a significant concern, particularly as housing prices have fluctuated in recent years. According to the Housing Market Outlook 2025 by the Canada Mortgage and Housing Corporation (CMHC), the housing market is expected to experience mixed impacts due to economic uncertainties, including potential U.S. trade tariffs and reduced immigration targets. The report indicates that while some households may see improved buying power due to lower mortgage rates, overall economic challenges will limit housing activity.

The OECD Economic Surveys: Canada 2025 also highlights that housing affordability remains a pressing issue, with rising prices outpacing supply. This trend has been exacerbated by a lack of adequate housing supply to meet demand, leading to increased financial strain for many Canadians.

Furthermore, a report from Ratehub.ca noted that housing affordability deteriorated slightly in May 2025, as the required income to purchase a home increased in several major markets due to rising home prices. This indicates that while some aspects of affordability may improve, the overall trend remains concerning.

Analysis

The claim that "housing affordability has changed in Canada" is supported by various reports indicating both improvements and deteriorations in affordability. The CMHC report suggests that while lower mortgage rates may enhance buying power for some, the overall economic landscape, including rising prices and slower population growth, will likely hinder housing activity. This duality reflects a complex housing market where improvements in affordability for some may not translate to the broader population.

The OECD report corroborates this by stating that rising housing prices continue to strain affordability, particularly as supply fails to keep pace with demand. This is echoed by the findings from Ratehub.ca, which show that affordability has worsened in certain markets, further complicating the narrative around housing affordability in Canada.

The sources used in this analysis are credible, with the CMHC being a government agency focused on housing, the OECD providing economic insights, and Ratehub.ca being a reputable financial service provider. However, it is essential to note that the varying regional dynamics in Canada can lead to different experiences of affordability across the country.

Conclusion

Verdict: True. The claim that "housing affordability has changed in Canada" is accurate. The evidence indicates that while there may be pockets of improvement in affordability due to lower mortgage rates, the overall trend is characterized by rising prices and economic challenges that continue to strain housing affordability for many Canadians.