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Economic Viewpoint

Desjardins Affordability Index: Finding Shelter from the Trade War Storm

May 14, 2025
Kari Norman
Economist

Over the past quarter century, the average selling price of a home in Canada has ballooned by more than four times, while the average household disposable income has only slightly more than doubled. Benchmark home prices now consistently exceed what the average household can afford in several provinces.

As a result of the widening gap between home prices and income gains, paired with high rent inflation between 2022 and 2024, it takes potential homebuyers significantly longer to save up for their down payment.

Looking ahead, we expect interest rates and average home prices to remain favourable to buyers, though rising unemployment will likely weigh on average household disposable income. Putting it all together, homebuying affordability is unlikely to improve meaningfully over the next two years.

NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.