A new survey has shown that housing affordability is at the top of all issues concerning Canadians.
Leger surveyed 2,650 Canadians between July 12 and 15 to study the public’s confidence in the Canadian economy. This data is used to determine what the country’s spending will be like in the coming months.
More Canadians had lower confidence in the economy than higher, a pattern that has carried over since the last survey in January.
When this survey was held, the Bank of Canada had already made its first rate cut in over four years, but this did not budge Canadians’ grim outlook on housing affordability, which was the top concern.
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“Current and future economic confidence, both for the country and households, is largely stagnant this wave. While lower inflation and a recent interest rate cut mean concerns in these two areas have continued to abate, housing affordability remains a huge issue,” the report reads.
“Many Canadians are spending more on housing, which reduces their disposable income and is impacting their economic outlook. Despite this, there [are] some encouraging signs in fewer making cuts to their discretionary spending; it just may take more time before Canadians are willing to ramp up their spending again.”
Inflation was the most important issue on Canadians’ radar last fall. In January, housing worries replaced it, and the situation doesn’t seem to be improving anytime soon.
Still, inflation remains a big concern, dropping in the survey by only 8% since September 2023.
Healthcare worries took the third spot, followed by climate change, immigration, homelessness, and taxes.
Gas price concerns have alleviated by more than half since August 2022, but immigration-related concerns have risen from 8% last fall to 18%.
Worries about interest rates took a slight dive, going from 17% in January to 14% by mid-July. Another rate cut was announced on July 24 after the Leger survey, and more cuts are widely expected, so there’s hope that this problem will concern Canadians less and less in the future.
Leger
Half of Canadians who pay mortgages or rent said their payments have increased over the last couple of years.
The report further states, “This rises to a phenomenal seven-in-ten among renters. “Increases are seen for all subgroups, but the lowest income earners are the ones who are being hurt the most.”
Across provinces, people whose mortgages or rents went up are overwhelmingly cutting other spending to be able to make their housing payments.
BC renters and mortgage owners take the lead in this.
Leger
As far as the methods to save money go, most found themselves slashing their grocery and household item-related expenses.
This was most prominent in Alberta (86%), followed by Quebec.
In BC, 83% of renters and mortgage owners with increased payments said they’re eating out less and not ordering delivery and home meal kits as much.
Leger
If you’re wondering what parts of Canada are still somewhat affordable for housing, Point2Homes shared a list of the largest cities that have “perfected the recipe for a well-balanced rental experience” last week.
“In these renter hotspots, tenants don’t have to live in limbo until they get to buy a home, but are actually free to enjoy the renter life,” states the report.
Read all about those cities here.