Toronto’s affordability story continues to evolve, with Q2 bringing a modest improvement—aggregate affordability dipped by about 1 point to 64% across all housing types. While this is a positive move, Toronto still ranks as one of the least affordable markets among those tracked. What’s driving the change? Strong income growth is providing some welcome relief, even as home prices begin to stabilize. This quarter’s improvement is the smallest since the recovery began in Q1 2024, but it’s still progress—and Toronto is outpacing most other markets.
For those seeking a more accessible entry point, condos are now at their most affordable since 2017. That’s a noteworthy shift for buyers looking to make their first move or expand their investment portfolio. Even so, the city’s overall affordability remains the second toughest among major markets—just a point away from a potential ranking change.
Having guided clients through many market shifts like these, I know how crucial it is to interpret these trends for your next step, whether you're buying, selling, or investing. A nuanced understanding of local data helps ensure your decisions are as informed and strategic as possible in Toronto’s ever-changing landscape.
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