How are Canadians' household finances coping in the current environment?

More than one-third (34%) of Canadian households have said that their financial situations have worsened over the past year, according to a Leger poll commissioned by the Association for Canadian Studies.

And while more than half (58%) said that their finances had remained about the same as they were a year ago, only 9% reported seeing improvements in their financial situations in 2022.

Households in the lower income brackets were the most affected by what Association for Canadian Studies president Jack Jedwab described as the “unequal challenges” of the past year.

Around 42% of households earning less than $40,000 said that their financial situations had worsened in 2022, versus the 25% share among households earning $100,000 and higher.

“[Canadians] in lower income brackets are finding the pinch particularly difficult in terms of the effects of the inflation and higher interest rates and so forth,” Jedwab said.

The broad range of home prices across major markets was also reflected in the survey results, with 22% of households in Quebec reporting that their financial situations had deteriorated, and 43% of those in British Columbia saying that they were worse off compared to a year ago.