Canada Housing Market

Affordable homes are becoming more common across Ontario’s housing market, but the improvement is being driven largely by one segment: condominiums.

A new report from the Municipal Property Assessment Corporation (MPAC) found that homes valued under $500,000 now make up nearly one-quarter of Ontario’s housing market, marking a notable increase from just a few years ago.

While the shift may offer hope for some buyers, detached homes and other family-sized properties remain far less affordable than they were a decade ago.

More Homes Are Falling Below $500,000

According to MPAC’s latest report, homes valued under $500,000 now account for nearly 24% of Ontario’s residential real estate market.

That’s up significantly from 17% in 2022.

At the same time, the share of homes valued above $1 million has declined from a peak of 35% in 2022 to approximately 25% today.

MPAC says the figures suggest Ontario’s housing market is continuing to rebalance following the rapid price growth experienced during the pandemic.

Condos Are Driving The Shift

Much of the recent improvement in affordability has come from the condominium market.

The report found that:

• 46% of Ontario condos are now valued below $500,000.
• That’s up from just 24% four years ago.

The increase reflects softer condo prices across many Ontario markets, particularly in the Greater Toronto Area, where higher inventory levels and weaker investor demand have put downward pressure on prices.

Detached Homes Remain Out Of Reach

While condos have become more affordable, other housing types remain expensive.

According to MPAC:

• Only 5% of townhouses are valued below $500,000.
• Just 15% of semi-detached homes fall below that price point.
• Only 18% of detached homes are valued under $500,000.

Those figures remain well below where they stood a decade ago.

In 2016, approximately:

• 69% of townhouses
• 52% of semi-detached homes
• 60% of detached homes

were valued below $500,000.

The data highlights just how dramatically Ontario’s housing market has changed over the past decade.

More Communities Are Becoming Affordable Again

The report also found that affordability is improving outside the Greater Toronto Area.

Between 2022 and 2026, the number of Ontario municipalities with median home values above $750,000 fell from 105 to 65.

Several communities that previously had median home values above that threshold now have the majority of homes valued below $750,000, including:

• Kitchener
• Waterloo
• Cambridge
• Hamilton
• Collingwood
• Kawartha Lakes
• Gravenhurst
• Brock

According to MPAC, these changes may provide buyers with more housing options beyond the GTA.

What It Means For Buyers

Although Ontario’s housing market remains significantly more expensive than it was before the pandemic, recent price corrections are improving affordability in some areas.

For buyers who were previously priced out of Toronto and surrounding communities, softer prices- particularly in the condo market- may create new opportunities.

However, for households hoping to purchase larger family homes, affordability remains well below historical levels, suggesting the market still has a long way to go before returning to conditions seen a decade ago.

References

Canadian Press. (2026, June 24). Homes under $500K taking up bigger share in Ontario real estate market: Report. CBC News. https://www.cbc.ca/news/canada/toronto/homes-under-500k-ontario-real-estate-market-mpac-1.7570964

Municipal Property Assessment Corporation. (2026). Ontario Assessment and Property Insights Report. MPAC. https://www.mpac.ca