Condos in Montreal are now less affordable than those in Toronto based on the share of household income required for ownership [1].
This shift represents a significant reversal in the historical cost relationship between Canada's two largest urban centers. For decades, Montreal has been viewed as a more accessible alternative to the high-priced Toronto market, but current data suggests that gap has closed or inverted.
According to a report from RBC Economics, owning a condo in Montreal now requires a larger portion of a household's income compared to the same requirement in Toronto [1]. This metric focuses on affordability relative to earnings rather than the absolute sticker price of the properties.
Reports on the scale of this shift vary slightly between news outlets. CTV News said that for the first time in decades, owning a condo in Montreal is more expensive than it is in Toronto [1]. However, The Toronto Star said that Toronto condos are now roughly as affordable as units in Montreal and Halifax [2].
Both reports point to the same underlying trend: the rising cost of living in Quebec's largest city is outpacing the relative stability or adjustment of the Ontario market. The RBC Economics findings highlight how shifting price-to-income ratios can change the landscape of urban real estate, making previously affordable cities more restrictive for first-time buyers.
Real estate analysts said these dynamics are driven by a combination of price increases in Montreal and the specific ways household incomes have evolved in both cities. While Toronto remains one of the most expensive markets in North America, the rate of affordability loss in Montreal has created a new economic reality for prospective homeowners [1, 3].
“Owning a condo in Montreal now requires a larger share of household income than owning one in Toronto.”
This trend indicates a convergence of affordability crises across major Canadian cities. While Toronto has long been the epicenter of housing unaffordability, the shift in Montreal suggests that the economic pressures previously concentrated in Ontario are now impacting Quebec. This may lead to a change in migration patterns for young professionals and first-time buyers who previously viewed Montreal as a viable financial hedge against Toronto's prices.
