Rising expenses are impacting households across income brackets
A new survey by Leger for EveryRate.ca reveals that housing affordability in Canada has reached a critical point, with 67% of households unable to comfortably handle monthly housing costs exceeding $1,749. This financial strain is being felt across income brackets, including among higher-earning households earning over $100,000 annually.
The survey’s findings underscore a growing disconnect between household incomes and housing costs, as the average monthly mortgage payment reported by the Canada Mortgage and Housing Corporation (CMHC) is $1,829—above what most Canadians consider manageable.
"What stood out to me in this survey was that even households earning over $100,000 a year are feeling the pinch, with nearly half unable to comfortably afford housing above $1,749 per month. That shows how pervasive this affordability crisis has become—it’s not just affecting low-income Canadians,” EveryRate.ca co-founder Andy Hill said.
The survey captured responses from a broad demographic, with 56% of participants reporting household incomes of $60,000 or more and 71% holding post-secondary degrees. This suggests that financial pressures are widespread, even among those typically considered financially stable. In addition, 63% of respondents were homeowners.
Regional disparities add another layer to the issue, with provinces like British Columbia and Ontario showing significant gaps between what residents can afford and what they actually pay. In cities like Vancouver and Toronto, this divide is particularly stark.
For example, Vancouver’s average monthly mortgage payment of $4,238 exceeds the comfortable payment threshold by 137%, while in Toronto, the average mortgage cost of $3,550 is 119% higher than what respondents consider affordable.
According to EveryRate.ca, the gap between comfortable housing costs and actual payments reflects a combination of factors, including inflation, rising interest rates, and stagnant wages. Many Canadians are forced to stretch beyond their financial limits, often relying on savings or taking on additional debt to cover housing expenses.
Data from Equifax shows credit card debt has climbed to $122 billion, with repayment delinquencies on the rise, particularly among younger Canadians. Meanwhile, mortgage delinquency rates are also increasing, indicating widespread financial strain that extends beyond the housing market.
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