The financial strain on Canadian households is intensifying, with nearly one-third now facing difficulty managing their essential expenses. According to the 2022 Canadian Housing Survey, released by Statistics Canada, 30.9% of households reported financial struggles, up significantly from 20.4% in 2021. This marks a 51.5% increase, despite the country’s rapid population growth. Both renters and homeowners are grappling with rising costs, though renters remain the hardest hit.
Renters Face Growing Financial Challenges
Renters in Canada have seen a notable rise in financial difficulty, with 39.4% struggling to cover basic costs in 2022, compared to 28.8% the previous year. This represents a 36.8% increase. Among renters in social and affordable housing, nearly half (48.3%) reported financial hardship, highlighting the disproportionate strain on lower-income households compared to those in market rentals (38.2%).
Homeowners Experiencing Rapidly Declining Financial Stability
While renters continue to experience significant hardship, Canadian homeowners are also facing growing financial difficulties, particularly those with mortgages. The share of owner-occupied households struggling with finances surged to 26.4% in 2022, a sharp increase from 16.4% in 2021—a 61% jump. Mortgage interest rate hikes have contributed to this issue, but they are not the sole cause. Even mortgage-free homeowners are increasingly feeling the financial pinch, with their share of those struggling growing by a staggering 69.8% over the same period.
Outlook Remains Challenging
As inflation moderates, Canadian households continue to feel the pressure from elevated costs of living, compounded by rising interest rates and a recent uptick in unemployment. Many homeowners have yet to experience the full impact of increased mortgage rates, which peaked in 2023, meaning financial challenges may continue to worsen in the months ahead.