What Happened

Royal LePage released its 2026 Most Affordable Canadian Cities report on Tuesday, ranking 15 cities based on the percentage of household income required for mortgage payments. The report utilized 2024 Statistics Canada data alongside Royal LePage’s Q1 2026 House Price Survey to determine the rankings. Lethbridge, Alta., secured the top spot by requiring just 18.9% of household income for mortgage payments, supported by a provincial median total household income of $96,900. Saint John ranked second, requiring 19.6% of income, while Thunder Bay, Ont., dropped to third place from first in 2024, requiring 20.3% of income. The report also included Edmonton, Winnipeg, Saskatoon, and Sherbrook, Que., in its top rankings. Notably, no cities in British Columbia appeared on the top 15 list, reflecting the province's persistent high cost of home ownership. A survey commissioned by Royal LePage from Burson found that 51% of respondents would consider buying a primary residence in one of these affordable cities.

Why It Matters

The report highlights a significant shift in Canadian housing dynamics, where affordability challenges in major urban centers are pushing residents to consider relocation as a deliberate strategy rather than a last resort. While home prices in Canada’s largest cities have moderated over the past couple of years, barriers to entry remain high, making the math of homeownership unworkable for many buyers. This trend underscores the growing disconnect between housing costs and local incomes in major metropolitan areas. The data suggests that lower costs of living and a desire for a more relaxed pace of life are primary drivers for this potential migration. Consequently, the report serves as a critical indicator of where housing demand might shift as affordability pressures intensify in traditional hubs.

Local Vancouver / Burnaby Context

The absence of any British Columbia cities from the top 15 most affordable list in the Royal LePage report is consistent with long-standing local market realities. Vancouver and Burnaby remain among the most expensive housing markets in Canada, with entry barriers that far exceed the national average. Local context from BurnabyHouse historical articles and local knowledge sources indicates that while Burnaby offers diverse housing options, including townhomes and condos near transit hubs like the Metrotown SkyTrain intersection, the aggregate prices keep it out of the most affordable rankings. The City of Burnaby Zoning Bylaw and local development policies continue to influence supply, but the fundamental cost disparity with cities like Lethbridge or Saint John remains stark. For Burnaby residents, the report reinforces the local challenge of balancing proximity to employment and amenities with the high cost of ownership. The desire for a slow-paced life mentioned in the report contrasts with the dense, urban lifestyle prevalent in Greater Vancouver.

Market Impact

The report suggests a potential long-term shift in housing demand away from high-cost coastal markets toward more affordable inland and eastern cities. For owners in Vancouver and Burnaby, the moderation in home prices over the past couple of years may provide some relief, but the high aggregate prices keep them out of reach for many first-time buyers. Renters in these cities may see increased competition if buyers are priced out of the market and forced to rent longer. The data indicates that while affordability has improved in expensive markets, it is not enough to stem the desire for relocation among half of big-city dwellers. This could impact land value and redevelopment feasibility in secondary markets as demand grows there. Mortgage rate sensitivity remains a key factor, as the monthly payments in affordable cities are still significant relative to local incomes.

Builder / Developer Perspective

For builders and developers, the report highlights a growing market in cities like Lethbridge and Saint John, where affordability allows for higher homeownership rates. However, construction costs and financing availability in these markets may differ from those in British Columbia. The report's focus on mortgage payment percentages suggests that density and unit size strategies in affordable cities must align with local income levels. In Burnaby, developers continue to navigate complex zoning bylaws and high land costs, making feasibility dependent on premium pricing or density bonuses. The desire for a relaxed pace of life may also influence the type of housing products that are in demand in secondary markets, potentially favoring single-family homes or low-rise townhomes over high-density condos.

BurnabyHouse Insight

The Royal LePage report underscores a fundamental tension in Canadian housing: while affordability has improved in expensive markets, it is not enough to satisfy the desire for homeownership among many. For Burnaby residents, the absence of local cities from the top 15 list is a stark reminder of the high entry barriers they face. The report’s findings align with local observations that many residents are contemplating moves to more affordable regions, driven by both cost-of-living pressures and a desire for a slower pace of life. However, the practical barriers to relocation, such as career ties and family obligations, remain significant. This suggests that while migration trends may shift demand, the core housing challenges in Greater Vancouver will persist, requiring continued policy attention to balance supply, affordability, and quality of life.