Albertans feel slightly more pessimistic about Canada’s economy and their personal finances compared to people in the rest of the country.
That’s according to a new report by market research company Leger, which recently surveyed hundreds of people across the country about their money worries.
“The dramatic rise in mortgage and rent costs this past year is forcing Canadians to scramble to find ways to cover these increased costs in their monthly budget, impacting spending and savings habits profoundly,” Steven Mossop, Leger’s executive vice president for Western Canada, said in a news release.
“Our latest report shows that housing affordability is the number one issue nationally, which is the primary culprit in holding back any sustained economic recovery in our country.”
Overall, Albertans feel most concerned about inflation, despite its slow pace in Canada. The issue remains the top concern in the province, and to a larger degree than the rest of the country.
Many Albertans are also experiencing higher housing costs, with 45% of Albertans reporting an increase. This number was significantly higher for renters (64%) compared to mortgage owners (34%).
Healthcare and taxes made up other top-of-mind concerns for Albertans.
Albertans have maintained their slightly negative views of the national and provincial economies and their household finances. “Any optimism present in other provinces or nationally is not showing through in Alberta,” the report says.
Leger
Discretionary spending provided a more optimistic outlook than many other metrics, with a significant increase in people who expect to spend more compared to six months ago. However, the number of Albertans who indicate they will spend less slightly negates this fact.
“Higher housing costs are having a double whammy of impacting both spending and saving. Reduced spending is the technique with the most widespread adoption, but reduced future savings or withdrawing funds from savings are the next most prevalent when Albertans look for ways to pay for their more expensive housing,” the report said.
Folks in Alberta are reigning in spending by finding ways to save on day-to-day expenses, reducing entertainment budgets, and eating less takeout to make up for the increase in housing costs, the survey suggested.
With files from Megan Devlin