Many Canadians worry that they are only a few dollars away from financial disaster. Canadian Social Survey Quality of Life and Cost of Living for Q3 2022 findings were recently released by Statistics Canada (Stat Can). Nearly a third of households struggle to make ends meet because of the cost of the living problem, with young adults bearing the brunt of the uncertainty. Particularly difficult have been the skyrocketing costs of both buying and renting a home, with nearly half of Canadians concerned about their housing affordability.
Canadian inflation is reaching a generational high
The rate of inflation in Canada is among the highest it has ever been. The increase in the CPI of 10.9% in 2022 was the highest since 1982. Following a 2021 increase of 6.8%, which was more than three times the targeted pace, we now see this. Transport (+10.6%), food (+8.9%), and housing (+6.9%) all showed the highest price increases, according to Stat Can. It has put a lot of people in Canada in a tight spot, especially young individuals.
One of the hardest-hit demographics in Canada is the country's youth
The cost of living increase has affected all households, especially young adults. A recent survey found that 35% of American families struggled financially in the previous 12 months. Individuals between the ages of 45 and 54 accounted for the second largest percentage, after those between the ages of 35 and 44 (46%). Those over the age of 65 had the lowest rate of reporting financial hardship at 25%. Nevertheless, one-quarter of Americans citing financial hardship is a sizable proportion.
One-quarter of Canadians would have trouble paying a $500 emergency bill
One in four (26% of all households) can no longer afford to pay for a $500 emergency due to the rising cost of living. That skews towards younger households, with the biggest share (35%) among those between the ages of 35 and 44. Those between the ages of 45 and 54 were the next most likely to report being unable to cover a modest unexpected expense (31%), while those 65 and older were the least likely (19%).
Almost Half of Canadians Worry About Housing Costs
Housing was the primary concern because Canada has one of the world’s most overheated real estate markets. Nearly half of the households (44%). Reported worrying about meeting their housing costs. Those between the ages of 15 and 24 had the highest rate (58%), followed closely by those between the ages of 25 and 34 (56%). Of all age groups, those 65 and up had the lowest percentage of worry about housing expenses (27%), but that’s still 1 in 4 people.
Young folks are already feeling the effects of the housing affordability crisis. According to Stat Can, housing expenses affected 44% of adults aged 25 to 34. These families either had to uproot because of a change in circumstances or because of the high cost of maintaining their living arrangements. Less than 15% of households headed by someone 45 or older selected this option.
Nearly half of Canada’s population under the age of 45 now faces difficulties meeting their basic housing needs. Because of the crushing financial burden of home ownership, even fewer young persons are likely to consider making the investment.