As the cost of living continues to rise, nearly half of Canadians are feeling the pinch more than ever before. According to the latest data from Statistics Canada, 45% of Canadians report that increasing prices are significantly affecting their ability to meet day-to-day expenses. This marks a substantial rise from two years ago when only 33% of Canadians felt this level of financial strain.
The data comes from the Canadian Social Survey, which was conducted between April 19 and June 3, 2024. The survey is part of the broader Quality of Life Framework for Canada, a set of 84 indicators designed to gauge the overall well-being of Canadians and to guide policy decisions.
One of the most pressing issues highlighted in the survey is the growing concern over housing affordability. Nearly 38% of Canadians expressed serious worries about their ability to afford housing or rent, up from 30% in 2022. This concern is particularly acute among younger adults, with more than half (56%) of those aged 15 to 34 indicating that rising housing prices are a major source of stress. The data suggests that as the housing market continues to heat up, an increasing number of Canadians are finding it difficult to keep up.
Renters are bearing the brunt of this issue, especially those in lower income brackets. Nearly 60% of renters in the lowest income quintile reported being very concerned about housing affordability, compared to just 31% of homeowners in the same income group.
The survey also revealed that food insecurity remains a significant problem for many Canadians. Over one in five respondents (23%) reported that their households are somewhat or very likely to seek food or meals from community organizations within the next six months. This figure is consistent with data from two years ago, indicating that the situation has not improved despite various interventions.
Individuals with disabilities are particularly vulnerable in this regard. More than one-third (34%) of persons with disabilities expect to rely on community organizations for food in the coming months, compared to just 21% of those without disabilities.
The impact of rising prices is not just limited to the wallet; it also takes a toll on mental health. The survey found that 35% of Canadians describe their daily lives as quite a bit or extremely stressful due to financial issues, a slight increase from 33% two years ago. This financial stress is closely linked to a lower quality of life. Among those who report high levels of financial stress, only 17% express high life satisfaction, compared to 70% of those who report little to no financial stress.
Younger adults are once again among the most affected, with nearly half (46% to 47%) of those aged 25 to 44 reporting high levels of financial stress.
Perhaps unsurprisingly, rising prices have a disproportionate impact on lower-income Canadians. The survey found that nearly 60% of individuals in the lowest income quintile are struggling to meet day-to-day expenses due to rising prices.
The financial strain experienced by lower-income Canadians extends beyond daily expenses. Nearly half (48%) of individuals in the lowest income quintile expressed serious concerns about housing affordability, compared to just 19% of those in the highest income group.
Households with children are also feeling the financial squeeze more than others. Over half (55%) of such households reported that rising prices are greatly impacting their ability to meet day-to-day expenses. This figure is higher than the 42% reported by multiple-person households without children and the 37% reported by lone-occupant households.
These households are also more likely to experience financial stress and concern over housing affordability. Additionally, 28% of households with children expect to rely on community organizations for food or meals in the next six months, compared to about one in five among other household types.
The survey’s findings also underscore the unique challenges faced by individuals with disabilities. Over half (57%) of persons with disabilities reported that rising prices are significantly affecting their ability to meet day-to-day expenses. This is considerably higher than the 43% reported by those without disabilities.
Persons with disabilities are also more likely to be concerned about housing affordability and to experience high levels of financial stress. The challenges are compounded by lower employment rates and higher poverty levels among this group, making them particularly vulnerable to the economic pressures brought on by rising prices.
The findings from this latest survey paint a concerning picture of the financial challenges facing Canadians today. With nearly half of the population struggling to make ends meet due to rising prices, it is clear that urgent action is needed to address these issues. The disproportionate impact on lower-income Canadians, younger adults, households with children, and persons with disabilities highlights the need for targeted policies that address the unique challenges faced by these groups.