The Real Estate Flip: Why Toronto Condos Are Suddenly Overtaking Montreal on Affordability
For the first time in over a decade, Canada’s real estate narrative is pulling a massive U-turn. According to a recent analysis by RBC, a major market “reshuffling” has occurred: condominiums in the Greater Toronto Area have officially become more affordable to own than those in Montreal.
This unexpected shift comes courtesy of the latest housing affordability report from RBC Economics. The data reveals that a sharp correction in Toronto’s condo segment, paired with steadily rising household incomes, has pulled ownership costs down to levels not seen since before the pandemic.
Breaking Down the Numbers
The standard measure for housing affordability is the percentage of a typical household’s pre-tax income required to cover ownership costs. According to RBC economist Rachel Battaglia, the numbers have flipped significantly:
- Toronto Condos: Dropped to 36.1% of a typical pre-tax household income in the first quarter of 2026. This is a notable improvement from the 38.5% peak seen in late 2019.
- Montreal Condos: Crept up to 36.3%, surpassing Toronto for the first time in 16 years due to sticky prices and tight supply.
- The National Benchmarks: Toronto’s condo market is now hovering just above the recommended 30% affordability threshold, sitting remarkably close to the national average of 35.2% and well below Vancouver’s steep 44%.
A Tale of Two Housing Markets
Local real estate agents are seeing the impact of this downturn on the ground. Many smaller, downtown Toronto units—specifically those under 700 square feet—are trading at or below their 2019 and even 2017 historical prices.
However, experts urge buyers to look at the fine print. While Toronto’s condo sector has taken a heavy hit due to an oversupply of smaller units, the city’s single-family detached homes are a completely different story. Buying a detached house in Toronto still demands upwards of 80% of a typical household’s pre-tax income, keeping the overall city market heavily strained.
For the budget-conscious buyer eyeing a condo, though, the gap between Canada’s second-priciest market and historically cheaper cities like Montreal and Halifax (33.4%) has never been narrower.
