Ron Butler highlighted the challenges faced by individuals trying to save up for a home down payment in today’s real estate market during a recent parliamentary finance committee hearing. According to Butler, in the past, individuals with modest incomes could easily afford the required down payment. However, with the current housing prices in the Greater Toronto Area, even those with solid full-time jobs find it nearly impossible to accumulate a sufficient down payment.
Previously, families earning $115,000 annually in Ontario had a chance at homeownership by seeking properties in places like Ajax, Burlington, Hamilton, or the Niagara region. However, today, individuals with the same income struggle to afford any property. The Canadian Real Estate Association reported an average home price of $673,084 nationwide in March 2026, requiring a minimum down payment of over $42,000. In contrast, the Greater Toronto Area and Greater Vancouver had average prices of $1,017,796 and $1,201,123, respectively, necessitating down payments of around $76,000 and $95,000.
This affordability crisis is not limited to Toronto and Vancouver but has spread to other regions in recent years. According to Mike Moffatt, the director of the University of Ottawa’s Missing Middle Initiative, areas such as Quebec, northern Alberta, Saskatchewan, Manitoba, Atlantic Canada, and northern Ontario offer relatively lower-priced homes in comparison to incomes.
A report by the Missing Middle Initiative revealed that newly built starter homes across 23 Canadian cities have become twice as expensive relative to median incomes since 2004. Additionally, Canada has experienced a significant rise in the home price-to-income ratio, with homes costing nearly 5½ years’ income today compared to three years’ income in 2004.
Butler noted that most homebuyers in Ontario and British Columbia belong to the top income brackets or receive substantial financial assistance from their parents to afford a property. The housing affordability issue has spread across Canada due to population movements, with places like Tillsonburg, Ontario, experiencing the most significant increase in home prices over the past decade.
Moffatt emphasized the importance of increasing wages to address the housing affordability crisis, as stagnant wage growth coupled with skyrocketing home prices has left many Canadian households financially strained. He suggested that rising wages, in addition to increased homebuilding, are crucial in achieving long-term affordability in the housing market.
