Statistics Canada report reveals shelter costs are the biggest drain on finances
Millions of Canadians have a lower quality of life with financial strain among the main reasons, according to a new report from Statistics Canada.
Canadian Social Survey data shows that several groups reported a relatively lower quality of life in 2021 and 2022, based on factors such as high life satisfaction and a high sense of meaning and purpose.
Renters are one of the groups identified, with those in this category lagging those in homes owned by someone in the household. While several metrics contributed to this, the report shows that those in rented homes were 15 percentage points more likely to report difficulty in meeting financial needs.
Financial pressure of renters is exacerbated by record low vacancy rates of 1.5% and rent growth at 8% which meant spending a larger share of their income on shelter than homeowners.
Younger Canadians also report a lower quality of life, impacted by social issues and concern about the future, but also struggling more financially, with renters – the majority of under 55s - paying a premium in the tight market. Even for those under 55s who own a home, they are less likely than over 55s to have paid off their mortgage and are therefore vulnerable to interest rate hikes.
Toronto and Vancouver
Intense financial pressures are also reported by those in Toronto and Vancouver, the report shows. Again, shelter costs are the main culprit with affordability in these two centres weaker than the national average.
While 2021 census data revealed that 21% of Canadians live in unaffordable housing with almost 8% spending over half their income on shelter, in Toronto and Vancouver 30% live in unaffordable housing with 13% spending more than half of their income on shelter.
Nationally, Canadians have been spending a larger share of their income on shelter costs: 31.4% in 2021 compared with 29.3% in 2019, and in the second quarter of 2023, almost 27% of households reported that it was difficult or very difficult to meet their financial needs, compared with less than 19% in late 2021.
