Housing Affordability Improves, but Risks Persist

After 2+ years of easing, most markets remain far from pre-pandemic affordability; condos are the exception.
RBC index: Q3 2025 ownership costs just over half of median income; single-detached hit 60%.
Condos: ownership costs ~35% of median income, but many young owners struggle to sell and upsize.
Iran war ↑ odds of a rate hike; higher bond yields could push mortgage rates higher for buyers and renewals.
RBC sees no 2026 rate changes, but expects hikes starting early 2027; affordability gains may be mostly behind.