Report uncovers key drivers of financial hardship and core housing needs
A growing number of Canadians are feeling the financial squeeze as housing costs continue to rise, according to data from the 2022 Canadian Housing Survey.
Conducted by the Canada Mortgage and Housing Corporation (CMHC) and Statistics Canada, the survey sheds light on key housing issues such as affordability, core housing needs, and the impact of rising living costs.
In 2022, 22.6% of households reported they "often or sometimes" face financial challenges due to rising rent or mortgage payments, nearly doubling from 12.2% in 2018. This rise comes against the backdrop of soaring housing costs in many parts of the country.
While the majority of Canadians (77.2%) still say they haven't experienced significant financial difficulty due to housing costs, the number of those who are struggling has clearly increased.
The survey also found that 11.6% of Canadian households were in "core housing need" in 2022 – meaning they live in housing that is either unaffordable, inadequate, or unsuitable, and cannot afford alternative accommodations in their community.
This rate is a return to pre-pandemic levels after briefly dipping to 9.8% in 2021, when emergency pandemic support like the Canada Emergency Response Benefit (CERB) temporarily eased some financial burdens.
Renters continue to be hit harder than homeowners, with 22.1% of renters in core housing need compared to just 6.1% of homeowners. Renters in social and affordable housing faced the most challenges, with nearly one-third (30.8%) in core housing need.
For those in core housing need, affordability remains the main issue. According to the survey, 88.4% of households in core housing need reported that unaffordable housing costs were a significant factor.
Housing is considered unaffordable if more than 30% of a household's pre-tax income is spent on shelter costs. Other challenges, such as inadequate housing (16.8%) and unsuitable housing (9.7%), were less common but still notable.
Read next: What's needed to fix Canada's housing affordability crisis?
The survey also highlighted disparities among different demographic groups. Racialized households are more likely to experience core housing need, with 14.1% of these households facing housing challenges, compared to 11.6% of all Canadian households. Certain groups, including Black (18.3%), West Asian (27.7%), and Korean (26.9%) households, reported particularly high rates of core housing need.
Indigenous households faced a higher risk, with 17.9% in core housing need, well above the national average.
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