Most Affordable Places to Buy a Home in Canada in 2025

Affordability has become the defining issue in Canada’s real estate market. With average home prices still hovering near $750,000 nationwide, many Canadians—especially first-time buyers and young families—are looking beyond major metropolitan areas for budget-friendly alternatives.

In 2025, affordability doesn’t just mean cheaper prices—it also means sustainable cost of living, local job opportunities, strong infrastructure, and long-term value. This guide highlights the most affordable places to buy a home in Canada this year and what makes them ideal for homeowners and investors alike.

National Housing Affordability Snapshot in 2025

The Canadian Real Estate Association (CREA) reports that home prices are slowly rising in 2025, with an average year-over-year increase of 3–5% nationally. However, price growth remains uneven. While Vancouver, Toronto, and Ottawa continue to struggle with affordability, other cities are emerging as more accessible options.

Key affordability trends in 2025:

Interest rates remain steady at 4.5–5.0%

Suburban and rural migration is continuing

Demand is shifting to smaller provinces and secondary cities

Multi-family and bungalow-style homes are in high demand

Top 8 Most Affordable Places to Buy a Home in Canada (2025)

1. Saint John, New Brunswick

Average Home Price: $280,000

Saint John continues to top affordability rankings. With its waterfront location, stable economy, and low property taxes, this East Coast gem attracts retirees, first-time buyers, and remote workers alike.

2. Regina, Saskatchewan

Average Home Price: $330,000

Regina offers some of the lowest home prices among major Canadian cities. The city has seen slow, steady growth with solid rental potential and an affordable cost of living.

3. Winnipeg, Manitoba

Average Home Price: $355,000

Winnipeg combines urban infrastructure with small-city affordability. Strong job markets in finance, education, and logistics make it a good bet for families and young professionals.

4. Thunder Bay, Ontario

Average Home Price: $360,000

Located in Northern Ontario, Thunder Bay is drawing buyers with affordable bungalows and growing demand from healthcare, education, and tourism sectors. It’s also a rising destination for retirees.

5. Moncton, New Brunswick

Average Home Price: $310,000

With strong job growth and population increases, Moncton is one of Atlantic Canada’s fastest-growing cities. Low home prices and solid rental demand make it ideal for investors.

6. Lethbridge, Alberta

Average Home Price: $325,000

Lethbridge is gaining traction as an affordable, family-friendly alternative to Calgary and Edmonton. It offers a balanced lifestyle with schools, healthcare, and nature nearby.

7. Cornwall, Ontario

Average Home Price: $370,000

Just a few hours from Ottawa and Montreal, Cornwall offers excellent value. It’s attracting remote workers and first-time buyers priced out of other Ontario markets.

8. Sault Ste. Marie, Ontario

Average Home Price: $345,000

This Northern Ontario city is growing due to affordable housing, access to nature, and new development. It offers some of the best entry-level pricing in the province.

Why Are These Cities Affordable?

Several factors drive affordability in these locations:

Lower population density and less speculative buying pressure

Strong local economies with regional job growth

Proactive municipal policies around zoning and development

Fewer foreign investors, reducing upward pressure on prices

Additionally, many of these cities are supported by federal and provincial infrastructure investments, making them more connected and livable than ever before.

Spotlight: Affordable Housing in Ontario

While Toronto remains out of reach for many, several Ontario towns and cities offer relative affordability:

Sudbury: Mining and education hub with good healthcare access

Peterborough: Popular for retirees and remote workers

Milton: Known for new construction bungalows and family-oriented communities

Brockville: Quiet lifestyle with direct access to the St. Lawrence River

In particular, Milton is gaining attention in 2025 for its growing inventory of affordable bungalows. First-time buyers and downsizers are flocking to the best neighbourhoods in Milton for affordable bungalows, which offer modern amenities at a lower price point than GTA suburbs.

Buyer Tips for Affordability in 2025

If you're looking to buy in a more affordable part of Canada, here’s how to do it wisely:

Get Pre-Approved Early

Lock in your mortgage rate and understand your budget, especially if you're moving between provinces.

Research the Local Market

Understand how fast homes are selling, rental vacancy rates, and the employment landscape.

Look for Bungalows and Multi-Unit Homes

Single-level homes and duplexes offer future rental potential and are more accessible to families and seniors.

Evaluate Cost of Living

Don’t just look at home prices. Consider transportation, utilities, insurance, and local tax rates.

Work with a Local Realtor

A realtor with deep knowledge of smaller markets can help you spot undervalued opportunities and avoid bidding wars.

Conclusion

In 2025, the most affordable places to buy a home in Canada are no longer found in big cities—but rather in smaller, more stable markets offering good value and long-term growth. Cities like Saint John, Regina, Thunder Bay, and Moncton provide budget-conscious buyers with a clear path to homeownership.

As housing affordability becomes a national challenge, these towns and secondary cities offer a glimmer of hope. Whether you're a first-time buyer, investor, or someone looking to relocate for a better quality of life, exploring these affordable markets could be your smartest move in 2025.