Two of Canada's most affordable cities for 2026 are in Ontario

Affordability challenges and a desire for a slow-paced life are pushing many Canadian residents out of major cities, according to a new report.

Despite some improvements in affordability nationwide, Royal LePage's 2026 Most Affordable Canadian Cities Report found that over half of respondents (51 per cent) in the greater regions of Toronto, Montreal, and Vancouver said they would consider buying a primary residence in one of Canada's 15 most affordable cities, if they were able to find a job or work remotely.

Out of the country's 15 most affordable markets, two are located right here in Ontario, with Thunder Bay coming in at #3 and Windsor-Essex taking home the #11 spot. In Thunder Bay, just over 20 per cent of a household's monthly income would be required for the average monthly mortgage payment, which is an improvement from 2024, when 22.2 per cent was needed.

"Thunder Bay continues to be a highly attractive and relatively affordable market, even as home prices have steadily increased in recent years," said Nathan Lawrence, sales representative and partner at Royal LePage Lannon Realty.

"Limited inventory and strong buyer demand continue to support a seller's market and rising home prices. Despite these gains, affordability remains a key strength, supported by a diversified economy, strong employment opportunities, access to post-secondary education and healthcare, and a quality of life that offers a slower pace than larger urban centres."

Meanwhile, in Windsor-Essex, 28.7 per cent of a household's monthly income is needed to pay the average monthly mortgage payment, which is down from the 36.4 per cent required in 2024.

Overall, Edmonton was the top-ranking choice to move to for respondents here in the GTA (16 per cent), followed by Thunder Bay (15 per cent), Charlottetown (14 per cent), and Windsor-Essex (14 per cent).

"Home prices in Canada's largest cities have moderated over the past couple of years, but for many buyers, the math still doesn't work," said Phil Soper, president and CEO of Royal LePage.

"As barriers to entry remain high in the country's most expensive urban centres, relocating to a more affordable city is becoming less of a last resort and more of a deliberate strategy. Aspiring homeowners who cannot secure a foothold in these markets are seriously weighing their options, and renters – unburdened by existing roots – are more likely to make that move than established homeowners."

Out of those surveyed, 55 per cent of all respondents who would consider relocating specifically mentioned a lower cost of living as the main incentive for buying a property in one of Canada's most affordable cities, while 42 per cent cited a more relaxed pace of life, and 41 per cent said they wanted to be closer to nature. According to the report, respondents were able to select more than one answer.

The report also found that younger people are more likely to relocate to take advantage of affordable housing, with 77 per cent of Gen Z respondents and 56 per cent of Millennials responding that they'd consider buying a primary residence in one of Canada's most affordable cities, compared to just 51 per cent of Gen X and 34 per cent of Baby Boomers.

These are the most affordable cities in Canada for 2026, according to the report:

1. Lethbridge, Alta.
2. Saint John, N.B.
3. Thunder Bay, Ontario
4. Red Deer, Alta.
5. Regina, Sask.
6. St. John's, Nfld.
7. Edmonton, Alta
8. Trois-Rivières, Que.
9. Fredericton, N.B.
10. Winnipeg, Man.
11. Windsor-Essex, Ont.
12. Saskatoon, Sask.
13. Sherbrooke, Que.
14. Moncton, N.B.
15. Charlottetown, P.E.I.