Is it getting more affordable to buy a condo in Toronto? Yes. Toronto’s condo affordability measure improved to 36.1% in Q1 2026, down from 38.5% before the pandemic, according to new RBC Economics data — the closest the city has come to pre-2020 norms in years.
For anyone who’s been priced out of the GTA condo market since 2022, that’s a meaningful shift. RBC’s national aggregate affordability measure — the share of median pre-tax household income needed to cover mortgage payments, property taxes, and utilities — fell for a ninth straight quarter in Q1 2026, landing at 53%, its best reading since early 2022. Toronto and Vancouver led that national recovery, even as both cities held onto their titles as Canada’s least affordable major markets.
The bigger story, though, is in the condo segment specifically, and in what RBC’s economists say might come next.
Key figures at a glance (Q1 2026, RBC Economics):
National affordability measure: 53% (best since early 2022, 9th straight quarterly improvement)
Toronto condo affordability: 36.1% (vs. 38.5% pre-pandemic, Q4 2019)
National condo affordability: 35.2% (within 1 point of pre-pandemic norms)
GTA MLS HPI composite: down 6.7% year-over-year (May 2026, TRREB)
Vancouver aggregate affordability: 84.1% (least affordable major market in Canada)
Why Toronto condos are leading the affordability recovery
Condos were hit hardest by the rate hikes and price run-up of 2022, so they’ve had the most room to improve. Nationally, the condo affordability measure now sits at 35.2%, within one percentage point of where it stood before the pandemic. Toronto’s local measure — 36.1% — tells a similar story, and it lines up with what’s showing up in TRREB’s own numbers: the MLS Home Price Index composite benchmark for the GTA was down 6.7% year-over-year in May 2026, with the average condo apartment price down 6.4% to $639,000.
Lower prices are doing most of the work here. GTA sales were actually up 6.3% year-over-year in May 2026, even as new listings dropped 18.9% — a sign that buyers who’ve been sitting on the sidelines are starting to re-engage now that carrying costs have come down.
Is the affordability recovery running out of road?
RBC’s report, authored by assistant chief economist Robert Hogue and economist Rachel Battaglia, is careful to frame this as a window that may be closing rather than a new normal. Prices are stabilizing across most major markets, and with the Bank of Canada expected to hold its policy rate through the rest of 2026, the two forces that drove the affordability recovery — falling home values and falling mortgage costs — are losing steam.
From here, Hogue’s team expects wage growth to carry more of the weight, a scenario complicated by labour market softness that could limit meaningful income gains until 2027. In other words, the easiest affordability gains in this cycle are likely behind us.
How does the GTA compare to the rest of Canada?
Affordability trends have diverged sharply by region:
Vancouver remains the least affordable market in the country by a wide margin, with its aggregate measure at 84.1% — even after a 4-point quarterly drop.
Montreal has moved the opposite direction. Its condo affordability measure has now exceeded Toronto’s for the first time in 16 years, driven by home values that were 5.5% higher year-over-year in Q1.
Calgary sits close to its long-run average at 41.5%, supported by a comparatively strong provincial economy.
Quebec City is the only major market RBC tracked where affordability hasn’t improved since late 2023.
For GTA buyers, that context matters: Toronto’s affordability gains are real, but they’re part of a broader, uneven national picture — and not guaranteed to continue at the same pace.
What does this mean if you’re buying or selling in the GTA?
If you’ve been waiting for carrying costs to come down before buying a condo in Toronto or elsewhere in the Greater Toronto Area, this data suggests the window is real but may not stay open indefinitely. Softening prices combined with a Bank of Canada rate hold have created a rare stretch where affordability is improving without needing prices to fall further — but RBC’s own analysts don’t expect that to last much longer.
For sellers, particularly in the condo segment, it’s worth understanding that today’s pricing reflects a market that’s already adjusted meaningfully from 2022 peaks. Pricing realistically against current comparables — rather than 2022 benchmarks — is what’s moving listings in a market where sales are up but inventory choices for buyers are shrinking across Ontario’s biggest housing market.
FAQ
Is Toronto’s condo market more affordable now than during the pandemic boom?
Yes — Toronto’s condo affordability measure sits at 36.1% as of Q1 2026, close to its pre-pandemic (Q4 2019) level of 38.5%, driven mainly by lower prices rather than lower rates.
Will GTA housing affordability keep improving through 2026?
RBC Economics expects the pace of improvement to slow, since prices are stabilizing and the Bank of Canada is expected to hold rates for the rest of the year. Further gains will likely depend more on wage growth than on falling costs.
How does Toronto’s affordability compare to Vancouver’s?
Toronto remains more affordable than Vancouver, whose aggregate affordability measure sits at 84.1% — the worst in the country — even after a recent quarterly improvement.
If you’re weighing whether now’s the right time to buy or list in the GTA, I’m happy to walk through what these numbers mean for your specific situation. Book a complimentary, confidential consultation with me, Elena Gordon, and let’s talk through your options.
Elena Gordon, Gordon Group — GTA Real Estate
Sources: RBC Economics, via Canadian Mortgage Professional; TRREB MLS Home Price Index; TRREB Market Watch
