Housing affordability across Canada has been showing some improvement, with the national reading reaching around 41% in Q2 2026—thanks in part to lower home prices, reduced borrowing costs, and rising incomes. That said, even after about 13 percentage points of progress since the recent peak, homeownership remains a real challenge for many. On average, housing costs are still taking up about two-fifths of household income, and I know from conversations here in the Cowichan Valley that it often feels tougher than the numbers suggest. One important detail: these figures use average disposable income, not the median, which can paint a rosier picture than what many families actually experience on the ground.
A bank economist points to earlier rate cuts, a roughly 20% drop in national prices since 2022, and stronger incomes as drivers of this positive shift. But looking ahead, the reality is that slow income growth and only modest relief on rates could mean further price adjustments are still ahead. As someone who’s seen firsthand what makes our Valley special—and who’s guided clients through every turn of the market—I believe it’s essential to stay informed and realistic about both the challenges and opportunities in today’s housing landscape.
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