In 2023, 44% of Canadian households were devoting more than 40% of their income to housing costs. Looking ahead, forecasted data for the years 2024 to 2028 show a gradual decrease in this overburden. By 2028, it is expected to drop to 33%, a significant reduction from the 2023 level.
Between 2024 and 2025, there is an anticipated decrease of 7.1%, followed by a further reduction of 5.1% from 2025 to 2026. The trend continues with a year-on-year decrease of 5.4% and 5.7% for the years 2026-2027 and 2027-2028, respectively.
Looking at the compounded annual growth rate (CAGR) over the next five years (2024 to 2028), the average yearly decrease is 5.7%. This trend suggests a steady improvement in housing affordability over the forecast period.
Future trends to watch for include potential policy changes aimed at improving housing affordability, economic factors impacting household incomes, and real estate market dynamics that could influence these projections.