Canadians Grapple with Financial Pressures Amid Rising Housing Costs and Persistent Inflation 

Regions with Highest Financial Strain Identified: Alberta, Saskatchewan, Newfoundland, and Labrador

Canadians face intensified financial stress, despite hopes kindled by a slight cooling in inflation. However, the anticipated relief remains elusive.

A recent study by the Angus Reid Institute, a non-profit organization, reveals that a significant portion of Canadians, approximately one-third (32%), continue to fall into the “Struggling” category according to the ARI Economic Stress Index. This index assesses Canadians’ ability to manage key economic indicators and their economic outlook. The gap between this group and the next closest has now widened to nine points. Two years ago, those classified as struggling comprised a quarter of the population. Conversely, the “Comfortable” group has decreased from 29 percent in 2022 to 23 percent now.

Housing costs are a major factor driving this trend. Over two-fifths of Canadians (44%) report significant difficulty managing housing expenses. This struggle is even more pronounced among homeowners with mortgages (47%) and renters (56%).

Although inflation has recently stabilized, prices remain high in the eyes of Canadians. When asked about the costs of goods similar to those in the Consumer Price Index, almost no relief is perceived. Nearly 90% of respondents report rising prices for produce (87%) and meat products (87%), while substantial majorities note increases in gasoline (76%) and dairy (80%).

Given this context, a pervasive pessimism about the future is evident. While 18% of Canadians anticipate an improved financial situation in the next year, nearly twice as many (34%) expect their situation to worsen. The largest segment (39%) foresees no change.

Additional Key Findings:

The primary issues concerning Canadians remain consistent with last summer, focusing on the cost of living, healthcare, and housing affordability. Notably, concern over immigration has surged, doubling from 8% to 18%.

Politically, the economic challenges appear to have bolstered support for the opposition Conservatives. Among those supporting the Conservative Party of Canada (CPC), 44% are from the Struggling group, compared to 19% of Liberal supporters and 25% of NDP supporters.