Ron Butler mentioned that when he entered the mortgage industry three decades ago, it was relatively simple for individuals like grocery store produce managers or part-time nurses to gather the five percent down payment required to purchase a home. However, according to Butler, those days are now a thing of the past, as he highlighted during a recent parliamentary finance committee session focusing on household debt in Canada.
Butler explained that in today’s scenario, even individuals with solid full-time jobs would struggle to save up for the minimum down payment, especially in the Greater Toronto Area where it seems nearly impossible. Given a yearly income of around $110,000 to $115,000, covering expenses like rent, food, and taxes leaves little room to accumulate a sufficient down payment for a property priced just under a million dollars.
In the past, prior to 2015 in Ontario, a family earning $115,000 annually had a chance at homeownership, although they would have to explore areas like Ajax, Burlington, Hamilton, or the Niagara region to find affordable single-family homes. However, as per Butler’s observations, today, someone with a similar income would struggle to afford any property.
Recent data from the Canadian Real Estate Association (CREA) in March 2026 revealed that the national average home price in Canada stood at $673,084, necessitating a minimum down payment of slightly over $42,000. In stark contrast, the average prices in the Greater Toronto Area and Greater Vancouver were significantly higher at $1,017,796 and $1,201,123, respectively, requiring down payments of about $76,000 and $95,000.
The issue of unaffordable housing is not limited to Toronto and Vancouver but has extended to various other regions over the years, according to Mike Moffatt, the founding director of the University of Ottawa’s Missing Middle Initiative (MMI) and a housing supply and affordability crisis researcher.
Moffatt further highlighted the escalating prices relative to incomes, citing examples like Calgary, Montreal, and Ottawa. He emphasized that the gap between home prices and stagnant wage growth has widened considerably, making homeownership increasingly challenging for average wage earners.
Furthermore, reports from MMI disclosed alarming trends, showing that newly constructed family-sized starter homes across Canadian metropolitan areas have become more than twice as expensive concerning median incomes compared to 2004. This disparity has led to a significant rise in home price-to-income ratios, making it increasingly difficult for Canadians to afford homes.
Butler emphasized that the majority of homebuyers in Ontario and British Columbia belong to the top 10 to 15 percent of earners, or they rely on substantial financial assistance from parents who leverage the equity in their own homes to facilitate their children’s home purchases. The situation is dire, particularly in regions like the GTA and Greater Vancouver, where even a semi-detached home priced under $800,000 remains unattainable for individuals earning $115,000 annually.
Moffatt pointed out that some areas in Quebec, northern Alberta, Saskatchewan, Manitoba, Atlantic Canada, and northern Ontario offer relatively affordable housing options compared to incomes. However, the options for affordable housing are diminishing as the housing crisis spreads across the country due to population shifts and escalating property prices.
The housing affordability challenge persists as the costs of home construction remain high, posing a risk of prolonged periods with limited new home constructions. Moffatt emphasized the importance of wage growth alongside housing price adjustments to achieve affordability, stating that increased wages are crucial for balancing the housing market dynamics and enhancing affordability for Canadians.