Condo Affordability Returns to 2019 Levels: What It Means for Buyers

For the first time in years, buying a condominium in the Greater Toronto Area is becoming significantly more affordable. According to a recent Royal Bank of Canada (RBC) housing affordability report, the cost of owning a Toronto condo has fallen back to levels last seen in 2019, offering encouraging news for buyers who have been waiting for the market to become more accessible.

The improvement comes after several years of declining condo prices combined with steady wage growth. Together, these factors have reversed much of the affordability pressure created during the pandemic housing boom.

Toronto’s Condo Market Has Come Full Circle

RBC’s affordability measure for Toronto condominiums dropped to 35.2% during the first quarter of the year, returning to approximately where it stood before COVID-19 dramatically changed Canada’s housing market.

According to RBC Assistant Chief Economist Robert Hogue, the combination of lower prices and rising household incomes has effectively erased the affordability deterioration experienced during the pandemic.

This is one of the clearest signs yet that Toronto’s extended condo market correction has had a meaningful impact on buyers’ purchasing power.

The Trend Extends Beyond Toronto

The improvement isn’t limited to the GTA. Across Canada, condominium affordability has nearly returned to pre-pandemic levels as well.

RBC reports that its national condo affordability measure also fell to 35.2% in the first quarter, sitting less than one percentage point above its pre-pandemic level. Much of that improvement has been driven by price corrections in Toronto and Vancouver, Canada’s two largest condo markets.

Will Affordability Continue to Improve?

While the outlook remains positive, RBC believes the biggest affordability gains are likely already behind us.

Condo prices appear to be stabilizing after several years of correction, and interest rates have likely reached their cyclical lows. As a result, future improvements in affordability will probably come more from rising household incomes than from further declines in home prices or mortgage costs.

In other words, buyers shouldn’t necessarily expect dramatically cheaper condos in the years ahead. Instead, a combination of stable pricing and increasing incomes may gradually make homeownership more attainable.

What This Means for Ontario Buyers

For buyers across Southern Ontario, including those considering condominium ownership in communities like Guelph, Kitchener, Cambridge, and the Greater Toronto Area, today’s market presents opportunities that haven’t existed for several years.

With improved affordability, greater inventory, and more balanced market conditions, buyers often have more time to compare properties, negotiate favourable terms, and make informed decisions without the intense competition seen during the pandemic.

For sellers, the message is different. As affordability improves but buyer expectations remain high, pricing accurately and presenting a property well continue to be essential for achieving the best possible result.

The Toronto condo market may not be experiencing another boom, but it appears to be entering a healthier and more sustainable phase—one where both buyers and sellers can make decisions based on long-term value rather than market frenzy.