Outsized interest rate hikes this year are the major driver of mounting ownership costs, Hogue said.

“The Bank of Canada’s rate hiking campaign since March has added 100s of dollars to mortgage payments that come with a home purchase,” Hogue said. “This, along with the jump in property values during the pandemic, has made it more difficult than ever to become a homeowner in Canada.”

Read more: RBC on the state of Canada’s household wealth

Hogue predicted that price declines, which are already apparent in several markets, will eventually bring relief to home buyers.

“The sharp housing market correction that began this spring is rolling back some of the spectacular price gains made during the pandemic,” Hogue said. “We expect benchmark prices to fall 14% nationwide by next spring—more so in Ontario and BC. This should help lower ownership costs next year.”