Canada's housing affordability gap narrowed from 80% to 34% between September 2023 and August 2025 due to lower borrowing costs, stronger wages, and cooler home prices. Toronto and Hamilton saw the biggest gains, though prices remain high. Halifax has the widest gap at 74%, while Edmonton's is the smallest at 4%. Mortgage debt service ratios improved, restoring affordability to 2019 levels, but financial vulnerability remains in expensive markets like Toronto and Vancouver.
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