Customers shop in a No Frills grocery store in Toronto on May 30, 2024. (Chris Young / The Canadian Press)
Rising grocery and rent prices continue to put financial strain on lower-income Canadians, even as inflation eases, according to a new survey by the Angus Reid Institute.
The survey reveals that 51% of Canadians find it difficult to meet their household food needs, a figure that has remained steady since late 2021. For households earning less than $50,000 a year, this number climbs to 65%, highlighting the disproportionate impact on lower-income families.
The survey, conducted by the non-profit organization, asked Canadians about their financial struggles in areas such as housing, food, debt, and overall outlook. One-third of respondents (33%) described themselves as "struggling" with their finances. By contrast, 23% said they were "thriving," 22% felt "comfortable," and another 22% considered themselves "uncomfortable."
Interestingly, the financial burden isn't confined to low-income households. The survey found that even some Canadians with annual incomes exceeding $200,000 are feeling the pinch, with 25% of this group also reporting financial difficulties.
Despite these challenges, there are some signs of improvement. Fewer Canadians now feel worse off compared to a year ago. The proportion of respondents who believe their financial situation has worsened dropped by seven percentage points since last September. Similarly, fewer Canadians expect their situation to deteriorate in the next 12 months, with a five-point decline compared to last year.
Housing remains a significant concern for many Canadians, particularly renters. Although rental prices have increased by nearly 9% nationwide over the past year, some of the priciest markets have seen rents drop. Even so, three out of five renters reported that keeping up with rent payments is "tough" or "very difficult."
The study also sheds light on the growing divide between those who can afford homeownership and those who cannot. While some Canadians—particularly those who already own multiple properties—remain optimistic about buying a home in the near future, many renters feel homeownership is out of reach. According to the survey, 30% of renters want to buy a home but can't afford it, while 41% have given up on the idea altogether.
There is some optimism around interest rates. As inflation continues to cool, experts expect the Bank of Canada to reduce its key interest rate again soon. This could offer some relief to homebuyers and those with debt, but it remains to be seen whether these changes will significantly improve the financial outlook for Canadians struggling with high costs.
The survey, conducted between September 12 and 18, included nearly 4,000 Canadians. The margin of error is estimated at +/- 2 percentage points, 19 times out of 20.
