Canadian Cities Offer Affordable Homeownership Amid Cost of Living Crisis
As housing affordability continues to challenge Canadians, a new report from Royal LePage highlights 15 cities where owning a home remains within reach. Lethbridge, Alta., Saint John, N.B., and Thunder Bay, Ont., top the list as the most affordable options for prospective buyers.
Affordability Driven by Income-to-Mortgage Ratios
Royal LePage’s “affordability score” measures the percentage of household income required to cover a monthly mortgage payment—the lower the percentage, the more affordable the city. The analysis uses 2024 income data from Statistics Canada and aggregate home price data from the first quarter of 2026, reflecting average prices weighted by sales volume.
According to the report, Lethbridge leads with an affordability score of just 18.9%, requiring only that portion of income for a mortgage on a home priced at $338,700. Saint John follows at 19.6% ($265,900), and Thunder Bay at 20.3% ($339,900). Other notably affordable cities include Red Deer, Alta. (24.9%, $447,200) and Regina, Sask. (25%, $397,900).
Major City Residents Consider Relocating
The financial strain in Canada’s largest urban centers is prompting many to consider a move. A Burson survey conducted for Royal LePage in early June found that 51% of respondents in Toronto, Montreal, and Vancouver would consider relocating to one of the 15 affordable cities—if they could secure employment or work remotely.
Regional interest varies: 55% of Greater Toronto Area residents expressed willingness to move, compared to 48% in Greater Montreal and 46% in Greater Vancouver. Notably, younger generations are most open to relocation—77% of Gen Z respondents said they’d consider moving, versus 56% of Millennials, 51% of Gen X, and 34% of Baby Boomers.
Remote Work Fuels Mobility—but Trends May Shift
Phil Soper, president and CEO of Royal LePage, noted that remote work has transformed housing decisions. “Moving to a cheaper city is no longer a last resort but rather a conscious strategy,” he said. “The remote work era gave buyers the freedom to live anywhere while earning a competitive wage.”
However, Soper cautioned that as more employers mandate office returns, this flexibility may diminish. This shift could limit options for younger Canadians who are less rooted in specific communities and more willing to relocate for affordability.
Broader Economic Pressures Persist
The report arrives amid worsening mortgage affordability in most major Canadian cities, according to a March study by rate.ca. Despite recent price declines in large markets, high barriers to entry persist. An MNP study from last year revealed that young Canadians across age groups face disproportionate debt burdens, described by one economist as “a kind of youth abandonment.”
Public sentiment reflects this struggle: a 2024 Ipsos poll exclusive to Global News found that four in five Canadians believe homeownership is now achievable only for the wealthy—including 90% of Gen Z and 82% of Millennials.
Methodology and Assumptions
Royal LePage’s affordability calculations assume a 20% down payment, a three-year fixed mortgage at 4.64% interest, and a 25-year amortization period. The full list of the 15 most affordable cities includes:
- Lethbridge, Alta. – 18.9% ($338,700)
- Saint John, N.B. – 19.6% ($265,900)
- Thunder Bay, Ont. – 20.3% ($339,900)
- Red Deer, Alta. – 24.9% ($447,200)
- Regina, Sask. – 25.0% ($397,900)
- St. John’s, N.L. – 26.3% ($377,900)
- Edmonton, Alta. – 26.3% ($472,300)
- Trois-Rivières, Que. – 27.3% ($400,100)
- Fredericton, N.B. – 27.8% ($377,200)
- Winnipeg, Man. – 27.9% ($424,500)
- Windsor-Essex, Ont. – 28.7% ($480,500)
- Saskatoon, Sask. – 28.8% ($458,000)
- Sherbrooke, Que. – 28.9% ($423,200)
- Moncton, N.B. – 29.5% ($399,300)
- Charlottetown, P.E.I. – 30.6% ($428,200)
These findings underscore a growing trend: for many Canadians, achieving homeownership increasingly depends not just on income or savings—but on geography.
