High rents and financial pressures lead many renters to give up on buying a home
The persistently high cost of essential goods and housing continued to weigh heavily on many, especially renters who see homeownership slipping further from their reach. This comes despite inflation falling to 1.6%, as many are still grappling with high grocery and rental costs that show no signs of easing.
The Angus Reid Institute’s Economic Stress Index showed that financial pressure is widespread. One-third of Canadians (33%) were classified as "Struggling" due to ongoing challenges with debt, housing, and food costs. Smaller portions fell into categories like "Thriving" (23%), "Comfortable" (22%), and "Uncomfortable" (22%).
According to the report, 65% of Canadians with annual incomes under $50,000 are struggling to afford basic food needs, a number that has remained consistent since late 2021. Across the country, 51% of Canadians overall said they are finding it hard to keep up with household food costs.
Rental costs continued to rise, with the report noting a nearly 9% year-over-year increase nationwide, making it difficult for many renters to keep up with payments. Three in five renters reported that their monthly rent is tough or very difficult to manage, despite some markets seeing slight declines in rent prices.
For those hoping to break into the housing market, the picture was bleak. Three in 10 renters expressed a desire to own a home but said they simply can’t afford it right now. Meanwhile, 41% have given up on the idea of homeownership entirely.
In contrast, multiple-property owners were more optimistic about the market. Nearly one in five (17%) are either active in the housing market or plan to be soon, compared to 12% of those who don’t currently own a home.
Overall, 6% of Canadians are currently in the housing market, whether for their first home or an additional property. Younger Canadians aged 18-34 were more likely to be among this group, with 10% of both men and women actively looking. Additionally, another 6% were waiting for mortgage rates to drop before entering the market.
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Canadians were split on their financial outlook, the report showed. One in five expect their finances to improve in the next year (20%), while 30% anticipate their situation will worsen. The remaining 40% expect no change, and 10% were unsure of what the future holds.
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