Lethbridge, Alberta Named Most Affordable City in Canada for 2026
As housing affordability continues to challenge Canadians, a new report from real estate firm Royal LePage reveals that more than half of Canadians would consider relocating to a more affordable city — and Lethbridge, Alberta, has claimed the top spot as the most affordable city in the country.
The Royal LePage affordability survey, which analyzed 62 major Canadian cities, found that 61 of them saw improved affordability in 2026 compared to 2024. The report used Statistics Canada 2024 provincial median total income data alongside city-level aggregate house prices from the Royal LePage Q1 2026 House Price Survey to determine how much of a household’s monthly income would go toward mortgage payments in each area.
The Top 15 Most Affordable Cities
Lethbridge leads the list with a total home price of $338,700 and an affordability factor of just 18.9 percent — meaning a household would need to dedicate less than 19 percent of its monthly income to cover mortgage costs. The Alberta city was not included in the 2024 version of the study, making its debut at number one all the more notable.
Saint John, New Brunswick, ranks second with the lowest overall home price in the top 15 at $265,900. However, a lower average household income pushed its affordability factor to 19.6 percent. Despite this, Saint John saw meaningful improvement, with the share of income needed for mortgage payments dropping by 5.4 percent since 2024.
Thunder Bay, Ontario, slipped from the top spot it held in 2024 down to third place, though its affordability also improved by 1.9 percent. Rounding out the top five are Red Deer, Alberta, and Regina, Saskatchewan, where no more than 25 percent of a household’s monthly income is spent on mortgage payments.
The remaining cities in the top 15 are St. John’s, Newfoundland and Labrador; Edmonton, Alberta; Trois-Rivières, Quebec; Fredericton, New Brunswick; Winnipeg, Manitoba; Windsor-Essex, Ontario; Saskatoon, Saskatchewan; Sherbrooke, Quebec; Moncton, New Brunswick; and Charlottetown, Prince Edward Island.
Windsor-Essex Sees Biggest Affordability Gains
Among the 15 most affordable cities, Windsor-Essex experienced the largest improvement in affordability, with the percentage of household income spent on mortgage payments falling 7.7 percent since 2024. This significant drop highlights how shifting market conditions are creating new opportunities for buyers in regions that were already considered relatively affordable.
Why Affordability Is Improving Across Canada
Phil Soper, president and CEO of Royal LePage, attributed the broad improvement in affordability to a combination of factors affecting Canada’s most expensive real estate markets. Over the past two years, property prices in major urban centers — particularly Toronto, Vancouver, and their surrounding communities — have declined as demand has been dampened by geopolitical and economic uncertainty, reduced immigration rates, and an unprecedented increase in housing supply.
At the same time, cities with lower property prices are experiencing stronger demand as buyers seek an entry point into the market, which has driven prices upward in those areas. This dynamic has created a shifting landscape where affordability is improving in both expensive and affordable markets, though for different reasons.
Canadians Eager to Move, but Many Stay Put
The survey found that 51 percent of respondents living in the Greater Toronto Area, Montreal, and Vancouver expressed a desire to move, while 52 percent of renters across Canada said they would consider relocating to one of the 15 most affordable cities. Lower cost of living was the primary incentive, cited by 55 percent of those considering a move.
Generational differences were also stark. A striking 77 percent of Generation Z respondents and 56 percent of Millennials said they would consider purchasing a primary residence in one of the affordable cities, compared to 51 percent of Generation X and just 34 percent of Baby Boomers.
Despite this enthusiasm, Soper cautioned that actual migration may not match the level of interest. Career opportunities, family responsibilities, and established social networks remain powerful forces that keep people in place. While Canadians are remarkably mobile in theory, the number who actually follow through on relocation plans tends to be considerably lower.
Cost of Living Pressures Persist
Even as housing affordability improves in many markets, Canadians continue to feel the squeeze from other cost of living expenses. Statistics Canada reported that the national inflation rate rose to 3.2 percent year-over-year in May, up from 2.8 percent in April. Food inflation climbed half a percentage point to 4.3 percent over the same period, outpacing headline inflation for 16 consecutive months.
These persistent pressures help explain why so many Canadians are actively exploring more affordable housing markets, even if they ultimately decide to stay where they are.
The Royal LePage survey was prepared by Burson and polled 900 Canadians over the age of 18 living in the Greater Toronto Area, Montreal, and Vancouver. Data collection took place between June 2 and 4, with results carrying a margin of error of 3 percent, 19 times out of 20.
