Poll finds high cost of groceries, rent affecting Canadians
High grocery and rental costs are squeezing lower-income Canadians even as inflation trends downward, a new survey suggests.
A slight majority (51 per cent) of respondents in an Angus Reid Institute survey said it is a challenge to keep up with their household food needs. This proportion hasn’t changed much since it rose to this level in late 2021, the non-profit, non-partisan public opinion research foundation said in a news release published Monday.
The number of surveyed Canadians who are struggling with costs climbed to two-thirds (65 per cent) among those whose annual household incomes are less than $50,000.
The institute asked Canadians how they were coping with costs when it comes to financial outlook, debt, housing and food expenses. The largest proportion of respondents (33 per cent) said they were “struggling.”
Meanwhile, 23 per cent of Canadians polled said they were “thriving,” 22 per cent said they were “comfortable” and 22 per cent described themselves as “uncomfortable.”
It wasn’t only those with lower incomes who said they were struggling financially. For instance, more Canadians with household incomes above $200,000 were also having difficulties at 25 per cent, the survey found.
Despite Canadians’ financial woes, the findings had a positive side. The proportion of Canadians saying they’re worse off now fell seven points compared to last September, according to Angus Reid Institute.
The number of respondents who expect to be doing worse 12 months from now is also down five points compared to the same time last year, it added.
What is the situation for homebuyers and renters?
Although interest rates are falling, changes in housing and rental prices have varied.
Rental costs are up overall across the country by nearly nine per cent year over year, according to Angus Reid Institute, but they fell in some of the most expensive markets. Even with the lower rent in some areas, three-in-five renters said their monthly payment is “tough or very difficult to keep up,” the institute wrote.
In terms of homes, the costs are still growing everywhere except Ontario and British Columbia, the institute said.
The high bills and the rising costs of housing make many renters more pessimistic about the future. The study found that three-in-10 renters (30 per cent) said they’d like to own a home but can’t afford it yet, while two-in-five (41 per cent) have given up on ever owning a home.
Are interest rates expected to go down in Canada?
Despite Canadians’ financial difficulties, the findings had a positive side.
Some view homeownership as a realistic goal. Those who already own multiple properties are most likely to be looking now or waiting for rates to drop, according to the institute. It said nearly one-in-five in this group (17 per cent) are actively looking for a home now or expect to be soon, compared to 12 per cent of the group of respondents who do not own a home.
What’s more, the proportion of Canadians saying they’re worse off financially now has fallen seven points to 42 per cent compared to last September from 49 per cent, according to Angus Reid Institute.
The number of respondents who expect to be doing worse 12 months from now is also down five points compared to the same time last year, it added.
There may be more reasons for some to be optimistic. The Bank of Canada is expected to slash its key interest rate Wednesday for a fourth time this year as inflation has cooled in both Canada and the United States.
The Canadian Press reports that experts expect a larger rate cut this time around, based on September inflation data.
Methodology
The Angus Reid Institute conducted a self-commissioned and self-funded online survey from Sept. 12 to 18 among a randomized sample of 3,985 Canadian members of Angus Reid Forum. It said a probability sample of this size would carry a margin of error of +/- 2 percentage points, 19 times out of 20.
This article was first reported by CTV News
