Housing Affordability Hits Home: A closer look at Canadian families’ financial stress

As we embark on the third segment of our in-depth investigation into Canada’s housing crisis, a collaborative effort with the Canadian Real Estate Association (CREA), we turn to an exploration of the financial challenges faced by families with children aged 18 and under. This extensive study, encompassing responses from 3,500 Canadian adults aged 18 and above, was conducted from September 22 to 28, 2023. The data paints a clear picture, portraying the economic hurdles that Canadian families with young children grapple with, as they content with economic uncertainty while navigating the current housing crisis, requiring them to make difficult decisions along the way. 

Concerns with Affordability 

An overwhelming 82% of Canadian households with children under the age of 19 express a strong belief that the government should give top priority to making housing more affordable. Additionally, a substantial 72% advocate for governmental measures to reduce the amount of personal debt carried by Canadians, with this sentiment being notably higher among families with children than those without. These statistics underscore the acute financial pressures experienced by families in their daily lives, amplified by the current cost of living and the housing crisis. It’s evident that Canadian families, especially those with young children, are seeking substantial relief and support from the government to alleviate their financial hardships. 

Among those with children aged 18 and under, a substantial 57% report an increase in their concerns regarding housing affordability over the past few months. In contrast, this figure is slightly lower for households with children over 18 (48%) and individuals without children (53%). This data illuminates the growing unease felt by families with young children, highlighting the pressing nature of housing affordability as a top priority for these households. 

Financial Hardship 

Homeownership Anxiety: For those who have children under 19 and own their homes, 87% made their purchase at a time when interest rates were lower than the current rates. While this might have seemed like a sound financial decision at the time, the data unveils a pressing issue: 80% of these homeowners are now concerned about their ability to afford their monthly mortgage payments when their mortgage comes up for renewal. The dream of homeownership, once seen as a secure investment in one’s family and future, now carries the heavy burden of uncertainty.  

Renters’ Dilemma: For renters, the situation is no less challenging. A striking 78% of renters with children 18 and under expressed deep concern about their ability to manage an increase in rent, should such an eventuality arise. With the cost of living on the rise, rent hikes pose a substantial threat to the financial stability of Canadian families. Further, 67% of renters with children under 19 also worry about the possibility of losing their current rental unit when their current rent agreement comes up for renewal. In a competitive rental market, where affordable housing is increasingly scarce, this fear is not unfounded. 

Personal Finances 

Strain on Families: Undoubtedly, the current housing market has inflicted significant harm on Canadians, especially families with children under 19. A striking 41% of such families report a personal negative impact from the housing market. These families are enduring widespread hardship, with 71% facing financial difficulties, 65% experiencing a decline in their quality of life, and 54% grappling with strained family dynamics. This toll surpasses the effect seen on families with older children and those without children. 

Financial Challenges Faced: A substantial 43% of families with children aged 18 and under categorize their current household finances as poor (vs. 32% among families with older children and 40% among those without children). Furthermore, a worrisome 60% of families with children under 18 are currently wrestling with moderate to overwhelming levels of debt, considerably higher than the 38% for families with older children and the 41% for those without children. This heavy debt burden creates a precarious financial predicament for these families. 

The Dream of Homeownership 

Within the demographic of individuals who presently do not own a home and have children under 19, a significant 74% express their desire to eventually become homeowners. However, nearly half of this group (48%) find themselves compelled to delay their home acquisition due to the current housing market conditions, pushing their dream of homeownership further into the distant future. When asked about the reasons behind this postponement, financial factors take center stage, with 70% citing the current cost of living, 61% pinpointing high mortgage interest rates, and 55% indicating difficulties in saving for a down payment. 

Optimism is also starting to dwindle within this group, as 30% are optimistic but growing concerned about their ability to ever buy a home, 18% have become pessimistic about their prospects, and 14% have altogether abandoned the dream of homeownership. These findings underscore the extent to which young families are compelled to postpone their homeownership aspirations due to ongoing financial challenges and their struggles to save for the future. 

Cost of Living Pressing Down on Canadian Families 

Cost of Living: The data reveals that a 9 in 10 Canadians with children 18 and under acknowledge that their cost of living has significantly increased over the past year. Further, 61% of families with children under 19 note that they have had to adjust their day-to-day expenses, primarily due to mortgage or rent hikes. This figure contrasts starkly with just 30% of households with children over 18 and 38% of those without children who have had to adapt to these rising costs. 

Living on the Edge: Furthermore, a significant 64% of families with children under the age of 18 report living paycheck to paycheck, leaving little room for financial security and unexpected expenses. This percentage is notably higher compared to the 43% of families with children over 18 and the 50% of those without children who face similar financial challenges. These families are acutely vulnerable to financial instability, underlining the urgent need for relief measures. 

Financial Sacrifices: The ripple effect of these changes is felt across all aspects of life. Families with children under 18 have been compelled to make sacrifices, especially in areas like food and groceries, where 67% have had to curtail their spending. Furthermore, 63% have had to sacrifice emergency savings, and 56% have found themselves needing to make sacrifices in debt payments. It doesn’t end there; education investments, critical for securing the future, are also being affected, with 37% of these families having to trim their commitments. The impact on Canadian families is significant, with the rising cost of living leaving them with little room for financial security and investments in their future. 

The Upshot 

The results outlined in this article carry significant personal and political implications for Canadian families. On a personal level, the findings underscore the profound challenges and anxieties that families, especially those with children under 19, are grappling with due to the ongoing housing crisis and financial instability. The dreams of homeownership and financial security have been replaced with concerns about affording mortgage payments, rent increases, and mounting debts. These challenges extend to daily living expenses and the ability to invest in their children’s education and future. The toll on family well-being and quality of life is unmistakable, further accentuating the urgency for concrete solutions. 

From a political perspective, these results have clear implications for government priorities and policy decisions. With such overwhelming support among Canadian households for government action on housing affordability and debt reduction, there is a growing mandate for policymakers to address these issues comprehensively. The data underscores the necessity of crafting and implementing effective measures to make housing more accessible and to ease the financial burdens on families. The government’s responsiveness to these concerns will be pivotal in addressing the acute financial pressures felt by citizens, particularly young families. Neglecting these issues could have far-reaching implications on social and economic stability. 

Overall, these findings are a compelling call to action for both individuals and policymakers. For Canadian families, they highlight the urgency of addressing housing affordability and debt reduction as top priorities for improving their financial and familial well-being. On the political front, the results reinforce the need for responsive, effective, and well-crafted policies to address these challenges and support the future stability of Canadian families and the broader economy. 


Methodology 

The survey was conducted with 3,500 Canadian adults from September 22 to 28, 2023. The current results focus on 784 families with children 18 and under. A random sample of panelists were invited to complete the survey from a set of partner panels based on the Lucid exchange platform. These partners are typically double opt-in survey panels, blended to manage out potential skews in the data from a single source. 

The margin of error for a comparable probability-based random sample of the same size is +/- 3.50%, 19 times out of 20. 

The data were weighted according to census data to ensure that the sample matched Canada’s population according to age, gender, educational attainment, and region. 

This survey was paid for by the Canadian Real Estate Association (CREA). 

Abacus Data follows the CRIC Public Opinion Research Standards and Disclosure Requirements that can be found here:

Standards

About Abacus Data 

We are the only research and strategy firm that helps organizations respond to the disruptive risks and opportunities in a world where demographics and technology are changing more quickly than ever. 

We are an innovative, fast-growing public opinion and marketing research consultancy. We use the latest technology, sound science, and deep experience to generate top-flight research-based advice to our clients. We offer global research capacity with a strong focus on customer service, attention to detail, and exceptional value. 

We were one of the most accurate pollsters conducting research during the 2021 Canadian election following up on our outstanding record in 2019. 

Contact us with any questions 

Find out more about how we can help your organization by downloading our corporate profile and service offering.  

BlogCanadian PoliticsHousingInsights

How are Canadian small business leaders feeling about their businesses and the broader Canadian economy?

Earlier this week, we completed a national survey of Canadian small business entrepreneurs as part of the Business Development Bank of Canada’s Small Business Week.

The survey interviewed a representative sample of small business owners and leaders from October 11 to 16, 2023. The objectives of this study was to see how small business owners are feeling about their business and the broader economic environment, to explore generational differences in perceptions, and to understand the persistent perceptual gap in the thinking of small businesses that sees business leaders feeling good about how their business is doing even when they feel bearish about the Canadian economy.

Here is a summary of what we found.

Bullish about their business; Bearish about the Canadian economy

Eight in ten small business entrepreneurs in Canada describe their business as doing very well or pretty well today. At the same time, 64% of these same business owners feel the Canadian economy is doing poorly. Despite pessimism about the country’s economy, the proportion of business leaders (80%) who think their business is doing well today think it will be doing well 12 months from now.

Moreover, when we ask about profitability, demand, and sales, most think those aspects of their business will improve or stay about the same. In other words, despite most entrepreneurs believing that the economy is poor and will remain poor over the next 12 months, most think their business won’t be impacted that much.

So, the expected perceptual gap exists. 44% of business leadership who report their own business doing well also feel that the Canadian economy is doing poorly. Among those who think their business is doing pretty well, 64% believe the Canadian economy is doing poorly.

In contrast, fewer are likely to think their business is doing poorly but also think the Canadian economy is doing well.

Overall, almost half of Canadian small business entrepreneurs (44%) think their business is doing well despite believing that the Canadian economy is doing poorly.

What might explain this perceptual gap?

One place to look is the confidence that small business leaders have in their skills and the competitive position of their businesses.

Most Canadian small business leaders give themselves positive ratings when it comes to running their business. Between 50% to 70% believe they are doing an excellent or good job prioritizing and managing their time efficiently, leading people from different generations, protecting their business data, responding effectively to changing market and economic conditions, and balancing work in life. In short, entrepreneurs are pretty bullish on their own business abilities.

At the same time, when we ask entrepreneurs whether their business is better, worse, or about the same as other businesses they compete directly with, most believe the quality of their products and services are better than most and they have better customer and client loyalty. In contrast, when it comes to agility, team culture, and profitability, half or more think their business is about the same or worse than other businesses they compete with.

And so, part of the answer lies in entrepreneurs feeling they can overcome macro-economic challenges that might be impacting the broader business environment.

Later in the survey, we specifically asked entrepreneurs who felt their business was doing well but the Canadian economy wasn’t, why they felt that way.

Based on the responses, several reasons can be discerned as to why small business entrepreneurs in Canada believe their businesses are doing well despite their concerns about the broader economy.

Firstly, many businesses have carved out unique niches or cater to specific markets that are less sensitive to economic fluctuations. Examples include the art business, which caters to clients not significantly influenced by economic conditions, and the mental health industry, which might even see increased demand during tough times.

Secondly, experience plays a pivotal role. Entrepreneurs with years or even decades of experience have weathered previous economic storms and possess the skills and knowledge to navigate challenges effectively. They have cultivated loyal customer bases, operate in sectors resistant to automation or technological takeover, and in some cases, benefit from diversified sources of revenue, such as international exports or clients across borders.

Lastly, many highlighted their efficient business models, low debt, or prudent financial management, which gives them a buffer during economic downturns. Even in a challenging economy, these entrepreneurs emphasize the importance of quality, customer service, and adaptability, which they believe are the keys to their businesses’ resilience.

What else did we learn?

  • Half of small business entrepreneurs feel it is harder to run a small business today than it was 10 years ago. Interestingly, older entrepreneurs (40+) were more likely to feel this way than younger ones. Only 15% say it’s easier to run a small business today compared with 10 years ago.
  • Why is it easier? Entrepreneurs point to several reasons. Central to these is the exponential growth and accessibility of technology, particularly the internet, which offers multiple avenues for sales, promotion, and reaching a global customer base. The widespread use of social media platforms facilitates business growth and promotion, and numerous online tools and platforms simplify the management and operational aspects of businesses. Furthermore, the Canadian government provides enhanced resources, aids, tools, and continual support for small to medium-sized businesses. Access to digital marketing tools, online resources, and the shift towards e-commerce, especially post-COVID, have made running a business more convenient and less reliant on physical infrastructures.
  • Why is it harder? Small business entrepreneurs believe it is more challenging to run a business today due to several converging factors. The economic landscape has evolved, with heightened concerns about cash flow, increased costs in areas like shipping, importing, and basic necessities, as well as challenges related to inflation and rising interest rates. The digital age has ushered in a wave of worldwide competition, further saturating many industries. Additionally, government regulations have become more stringent, adding to the administrative burden for businesses. The COVID-19 pandemic has left an indelible mark, changing consumer behavior and exacerbating supply chain disruptions. Furthermore, businesses face increased competition not only from other local entities but also from global giants, with the added pressure of adapting to rapid technological changes and navigating an environment of economic uncertainty. Labour challenges, both in terms of cost and availability, have also been highlighted, along with shifting sentiments regarding prices and spending among consumers.
  • Entrepreneurs say they look at employment figures, inflation, interest rates, and business closures/openings in their community as the main indicators of the macroeconomic picture. Many also equate their own personal finances with the broader economic picture. But the most important indicator to entrepreneurs of the health of the economy right now is inflation. Higher inflation signals a weaker economy, in their minds.
  • An entrepreneur’s housing and mortgage situation has some impact on their business outlook, but not substantially so. For example, those with a larger mortgage – over $500,000 – are 20-points more likely to say their business is doing poorly than those with a smaller mortgage on their principal residence (37% vs. 17%). Likewise, those who own their principal residence are slightly more likely to feel their business is doing well than those who rent or live with family (82% vs. 75%).

The Upshot

The Perceptual Gap is Real: Many Canadian entrepreneurs believe their businesses are thriving despite their pessimism about the broader Canadian economy. This could be attributed to their belief in the superiority of their products/services, the diversity of their market, or their ability to adapt to changing conditions.

Self-Confidence: The majority of business leaders are confident about their managerial skills, which might influence their positive outlook on their own business despite a gloomy economic scenario. They believe they can navigate the challenges better than others.

Generational Differences Exist: Older entrepreneurs tend to find it harder to run a business today compared to a decade ago. This might be due to rapid technological changes and the challenges of adapting to a digital landscape.

Technology is a Double-Edged Sword: While technology has enabled businesses to reach global audiences and streamline operations, it has also increased competition. Businesses are not just competing locally but with global entities, making the marketplace more saturated.

COVID-19’s Impact is Still Felt: The pandemic has altered consumer behaviors, brought about supply chain disruptions, and has set a tone of economic uncertainty.

Inflation is a Key Economic Indicator: For most entrepreneurs, rising inflation is a sign of a weakening economy. This could impact their business decisions, such as pricing strategies and cost management.

Housing and Mortgages Play a Role: Entrepreneurs’ personal financial situations, especially concerning housing and mortgages, influence their business outlook to some extent.

Why Do These Results Matter?

Informative for Policymakers: These insights can be useful for policymakers to understand the mindset of small business owners, which can guide policy and economic decision-making. If entrepreneurs are basing their economic outlook on certain indicators like inflation, then managing these indicators becomes even more crucial.

Economic Forecasting: The dichotomy between business performance and economic outlook can provide economists with interesting data points when predicting future economic directions.

Support Systems: Knowing that entrepreneurs view technology as both an enabler and a challenge, support systems, training programs, or incentives can be designed to help them harness its benefits fully.

Sectoral Planning: By understanding what entrepreneurs view as challenges (like rising shipping costs, stringent government regulations, etc.), specific interventions can be planned for sectors most affected by these challenges.

How are Canadian Small Business Leaders Feeling?

Canadian small business leaders are generally optimistic about their individual business’s prospects, largely due to their confidence in their skills, product quality, and adaptability. However, there is a notable apprehension about the broader Canadian economy. This dichotomy presents a unique scenario where businesses are preparing for growth amidst perceived economic challenges.

Methodology

The survey was conducted with 600 Canadian small business entrepreneurs from October 11 to 16, 2023. A random sample of panelists were invited to complete the survey from a set of partner panels based on the Lucid exchange platform. These partners are typically double opt-in survey panels, blended to manage out potential skews in the data from a single source.

The margin of error for a comparable probability-based random sample of the same size is +/- 4.1%, 19 times out of 20.

The data were weighted according to census data to ensure that the sample matched Canada’s small business leader population by sector, region, and business size.

This survey was paid for by the Business Development Bank of Canada

Abacus Data follows the CRIC Public Opinion Research Standards and Disclosure Requirements that can be found here:

Standards

Uncategorized

Ontario PCs rebound despite RCMP investigation starting

From October 10 to 15, 2023, Abacus Data conducted a survey of 1,000 Ontario adults exploring their views on provincial politics and government. This survey was part of our regular national omnibus surveys.

If a provincial election was held today, the PCs would likely win another majority government with 40% of decided voters saying they would support the PCs (up 6 since last month) followed by the Ontario Liberals and NDP who are tied for second at 24% apiece.

The rise in PC support is mostly the result of a drop in support for the Liberals and NDP and a rise in undecided voters (from 20% to 27%) than a substantial surge in PC support.

Regionally, the PCs are well ahead in Toronto, the GTHA, and in southwestern Ontario while competitive with the Liberals in eastern Ontario and competitive with the Liberals and NDP in Northern Ontario.

Since August, the Ford government’s approval rating is unchanged with 30% approving and 47% disapproving.

When we asked respondents a similar question we started asking about the federal Liberal government about a desire for change, only 20% of Ontarians believe that Doug Ford and the PCs deserve to be re-elected. 47% think it’s time for a change and there’s a good alternative while 33% believe it’s time for a change but don’t think there’s a good alternative to Doug Ford and the PCs. A clear indication that neither the Ontario NDP or Ontario Liberals have firmly established themselves as an alternative government in waiting.

Digging deeper in the Greenbelt saga, we asked a question we have asked twice before – whether the decisions the Ford government is making are primarily about what’s in the best interest of Ontarios or are primarily in the interest of his friends and supporters. This month, those who are unsure has increased by 6-points but a majority (56%) continue to believe that Ford is making decisions primarily in the interest of his friends and supporters.

Now when respondents were told that Ford reversed his government’s decision to swap land in the Greenbelt for development, 62% felt it was the right decision (including 68% of past PC voters). Only 16% felt it was the wrong decision.

When asked whether the Greenbelt decision was part of a bigger problem with Doug Ford and the PC government or an isolated incident, 52% felt it was part of a bigger program while 24% thought it was an isolated incident and 24% were not sure or did not know. Noteworthy, 1 in 3 past PC supporters believe the Greenbelt decision reflects a bigger problem with Ford and his government.

Finally, this survey was conducted after news broke that the RCMP had opened up an investigation into how the Greenbelt deals were handled. Over the period the survey was conducted (October 10 to 15), about 1 in 4 Ontarians hadn’t heard the news yet. Another 44% are aware but not following it closely while 27% are following news of the RCMP investigation either pretty or very closely.

The Upshot

According to Abacus Data CEO David Coletto: “The Progressive Conservatives (PCs), under Doug Ford, appear to have arrested a decline in their popularity, which could be attributed in part to Ford’s reversal and subsequent apology over the Greenbelt saga. Although the PCs have witnessed an uptick in the vote share among decided voters, this increase is more a consequence of falling support for both the Ontario Liberals and NDP and an increase in the undecided voter demographic rather than an inherent rise in PC popularity.

Regionally, the PCs enjoy dominance in Toronto, the GTHA, and southwestern Ontario. However, when it comes to voter sentiment, only 20% feel that the PCs deserve reelection, indicating a prevailing undercurrent of discontent and a significant desire for change. While 47% desire a change and identify the presence of a viable alternative, a significant 33% wantchange but feel there’s no worthy substitute. This suggests that neither the NDP nor the Liberals have been able to position themselves as a credible alternative, reflecting a potential vacuum in opposition leadership, and one that may resolve itself once the Liberals elect their new leader later this year.

Diving into the Greenbelt issue, a majority (56%) still perceive Ford’s decisions as being influenced more by the interests of his friends and supporters rather than those of Ontarians. This sentiment could have been a contributing factor to the declining support in earlier polls.

However, Ford’s decision to reverse the Greenbelt land swap received overwhelming approval, with 62% agreeing it was the right call. It’s evident that this move has helped to mitigate some of the political fallout from the scandal. But, on assessing if this was a singular misstep or indicative of a broader pattern of governance, 52% felt it pointed to a more significant problem, highlighting that while the reversal was well-received, deeper issues of trust persist – albeit with only a slight majority of people in the province.

Notably, awareness surrounding the RCMP investigation into the Greenbelt deals remains relatively low; almost a quarter of Ontarians are still unaware, and only 27% are closely monitoring the developments. Should charges be laid as a result of this investigation, it’s uncertain how this might further impact the PCs’ standing and whether this would provide the necessary momentum for opposition parties to gain traction.”

Methodology

The survey was conducted with 1,000 eligible voters in Ontario adults from October 10 to 15, 2023. A random sample of panelists were invited to complete the survey from a set of partner panels based on the Lucid exchange platform. These partners are typically double opt-in survey panels, blended to manage out potential skews in the data from a single source.

The margin of error for a comparable probability-based random sample of the same size is +/- 2.2%, 19 times out of 20.

The data were weighted according to census data to ensure that the sample matched Ontario’s population according to age, gender, educational attainment, and region. Totals may not add up to 100 due to rounding.

This survey was paid for by Abacus Data Inc.

Abacus Data follows the CRIC Public Opinion Research Standards and Disclosure Requirements that can be found here:  https://canadianresearchinsightscouncil.ca/standards/

ABOUT ABACUS DATA

We are the only research and strategy firm that helps organizations respond to the disruptive risks and opportunities in a world where demographics and technology are changing more quickly than ever.

We are an innovative, fast-growing public opinion and marketing research consultancy. We use the latest technology, sound science, and deep experience to generate top-flight research-based advice to our clients. We offer global research capacity with a strong focus on customer service, attention to detail, and exceptional value.

We were one of the most accurate pollsters conducting research during the 2021 Canadian election following up on our outstanding record in 2019.

Contact us with any questions.

Find out more about how we can help your organization by downloading our corporate profile and service offering.

Canadian PoliticsProvincial Politics

The Housing Hardship: Low-income renters and Canada’s affordability crisis

We continue our month-long investigation of the housing crisis in Canada partnering with the Canadian Real Estate Association (CREA), to carry out a comprehensive nationwide survey involving 3,500 Canadian adults aged 18 and above, conducted from September 22 to 28, 2023. In this report, the second installment of our investigation, we delve into the repercussions of the housing crisis on low-income renters, specifically those with a household income of $50,000 or less. The data paints a bleak picture of the challenges and apprehensions confronting this vulnerable demographic, as they grapple with the surge in housing costs and the eroding affordability of shelter.

Concerns with Affordability

A staggering 94% of low-income renters agree that the surging rental costs in Canada pose a serious problem. Furthermore, 86% express deep concern regarding the lack of affordable rental properties in the country. The weight of mounting rent expenses is especially burdensome for those aged 51-65 (97%) and those aged 66 and above (98%).

The anxiety surrounding housing affordability is emphasized by the fact that 86% of renters are concerned about this issue. Furthermore, 69% of renters have witnessed their worries about housing affordability escalate in recent months. The obstacles to entering the housing market are disheartening for potential homeowners, particularly those with constrained incomes, marking the crisis’s deepening nature and underscoring the need for action to address its root issues.

Rental Market Struggles

Low-income renters are also grappling with challenges in the rental market. A significant 77% reveal that over the past year, locating affordable rental properties in their area has grown notably more challenging. This exacerbates the already daunting task for low-income individuals and families in their quest for secure and stable housing.

In conjunction with this, there is a concerning trend of diminishing housing availability. A significant 65% of renters acknowledge that over the past few years, the accessibility of affordable housing options has worsened. This signals a (perceived) widespread shortage of such housing options throughout the nation, thereby limiting renters’ choices. This can pose intricate challenges for renters, especially those with lower incomes, as their housing alternatives become significantly more restricted compared to their counterparts.

The Financial Hardships Faced by Low-Income Renters

A substantial 62% of low-income renters categorize their household finances as poor. This financial fragility is most pronounced among those aged 51-65, with 73% indicating the dire state of their financial affairs. Notably, individuals between the ages of 35-50 aren’t far behind, as 65% also describe their household finances as poor.

Moreover, a distressing 77% of renters earning $50,000 or less find themselves living paycheck to paycheck, grappling to make ends meet. This precarious financial situation is especially prevalent among those aged 35-50 and 51-65, where a striking 85% of individuals in both age groups find themselves in this delicate predicament.

An overwhelming 90% of these renters affirm that their cost of living has risen over the past few months. The increasing expenses related to essential necessities like groceries, utilities, and transportation compound the financial challenges they already endure due to housing costs.

These elevated percentages signify that a significant portion of this demographic is unable to set aside savings for the future or withstand unforeseen financial crises. This paints a stark picture of economic instability, with many renters teetering on the brink of financial distress.

Widespread Concerns of the Current Rental Market

A significant 79% of low-income renters express concerns about their ability to pay their rent. This pervasive worry is most acute among younger renters aged 18-34, with a striking 93% voicing these concerns. However, it is essential to note that these concerns are not limited to the young; they are also prevalent among those aged 35-50 (80%), underscoring the widespread anxiety surrounding rental affordability.

In addition to these pressing affordability challenges, three out of four low-income renters harbor apprehensions about their ability to handle potential rent increases. Beyond the issue of affordability, a substantial 57% of low-income renters worry about the possibility of losing their current rental units. These fears reflect the vulnerability of this group to any upward adjustments in rental costs, which could result in severe financial hardship or, worst-case scenario, eviction.

A distressing 78% of low-income renters express concerns about the long-term impact of the housing market on their financial stability. Once again, younger renters aged 18-34 (81%), those aged 35-50 (80%), and those aged 51-65 (80%) are particularly worried. These figures shed light on the broader implications of the housing crisis for the financial well-being of low-income Canadians, as it erodes their ability to save, invest, and plan for the future.

The data makes it clear: the housing crisis is not only about the immediate affordability challenges; it is also causing long-term financial instability and pervasive anxieties about housing security. Urgent and comprehensive solutions are needed to address this crisis, ensuring that low-income renters can find relief and stability in an increasingly turbulent housing market.

Potential Improvements to the Rental Market

In addressing the housing crisis, low-income renters advocate for several key solutions. Specifically:

  • 78% call for increased government-supplied affordable housing, recognizing the need for stable and affordable options;
  • 77% support income-based subsidies to provide targeted assistance to those grappling with housing costs;
  • 73% advocate for stricter rent controls, offering a safeguard against steep rent hikes and ensuring stability; and,
  • 67% emphasize the importance of incentivizing developers to create affordable rental properties, which could expand the supply of rental units.

These results highlight the fact that low-income renters actively seek solutions that involve both government intervention and private sector involvement, underscoring the urgency of addressing housing affordability. Policymakers at all levels of government should heed these recommendations, working towards a more inclusive and just housing market where housing is a fundamental right accessible to all, regardless of income.

Varied Attitudes Toward Homeownership

Among low-income renters, a striking 57% express a desire to own a home someday. When contemplating a home purchase, 45% of renters with annual household incomes of $50,000 or less note that they are likely to purchase a residential property within the next 3 to 10 years. However, 32% hold the belief that they may never be able to buy a property, underlining the persistent affordability challenges in the current landscape. Furthermore, over one-third of low-income renters have resigned themselves to the notion that homeownership may elude them (39%). This sentiment is particularly prevalent among older renters, with 65% of those aged 66 and above and 59% of those aged 51 to 65 sharing this perspective.

Conversely, younger renters, aged 18 to 34, retain a certain level of optimism regarding their prospects for future homeownership, with 40% expressing optimism in their ability to purchase a home. Nevertheless, 29% of younger renters concede that their optimism is gradually waning. This revelation underscores the imperative need for action to confront the housing crisis, as the dream of homeownership slips further from the reach of low-income renters.

The Upshot

In conclusion, the information presented here highlights the significant political implications of the housing crisis among low-income renters. This crisis is not merely a matter of political expediency; it represents a moral and societal imperative. The potential political consequences are twofold: short-term and long-term. In the short term, low-income renters are likely to demand swift and meaningful action to address their pressing needs. Their urgency for affordable housing has become a critical issue that politicians at all levels of government must grapple with as they seek the support of these voters.

In the long term, the political implications are equally significant. If the housing crisis persists, it threatens to deepen societal divides and exacerbate inequalities, leading to long-term discontent among low-income renters. It undermines their financial security, mental health, and overall quality of life. Over time, this discontent could crystallize into a mobilized political force advocating for comprehensive solutions to rectify the issue. The longer the crisis persists, the more intense this advocacy is likely to become.

The housing crisis among low-income renters is not just a challenge to be managed; it’s a call to action. It’s a test of our commitment to equity and the welfare of some of our most vulnerable citizens. We must listen to this call and work towards a more just and inclusive society, where access to safe and affordable housing is recognized as a human right that transcends income levels. The political landscape is shifting, and addressing the housing crisis is both a moral imperative and a political necessity for a better and fairer future.

Methodology

The survey was conducted with 3,500 Canadian adults from September 22 to 28, 2023. The current results focus on 631 low-income renters (i.e., household income of $50,000 or less). A random sample of panelists were invited to complete the survey from a set of partner panels based on the Lucid exchange platform. These partners are typically double opt-in survey panels, blended to manage out potential skews in the data from a single source.

The margin of error for a comparable probability-based random sample of the same size is +/- 3.90%, 19 times out of 20.

The data were weighted according to census data to ensure that the sample matched Canada’s population according to age, gender, educational attainment, and region.

This survey was paid for by the Canadian Real Estate Association (CREA).

Abacus Data follows the CRIC Public Opinion Research Standards and Disclosure Requirements that can be found here: https://canadianresearchinsightscouncil.ca/standards/


About Abacus Data

We are the only research and strategy firm that helps organizations respond to the disruptive risks and opportunities in a world where demographics and technology are changing more quickly than ever.

We are an innovative, fast-growing public opinion and marketing research consultancy. We use the latest technology, sound science, and deep experience to generate top-flight research-based advice to our clients. We offer global research capacity with a strong focus on customer service, attention to detail, and exceptional value.

We were one of the most accurate pollsters conducting research during the 2021 Canadian election following up on our outstanding record in 2019.

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Find out more about how we can help your organization by downloading our corporate profile and service offering. 

BlogCanadian PoliticsHousing

Trudeau vs. Poilievre: Who do Canadians trust more to handle things plus Conservatives lead by 13

From September 28 to October 5, 2023, Abacus Data conducted a national survey of 1,985 adults exploring several topics related to Canadian politics and current events as part of our regular national omnibus surveys. In this survey, we oversample Alberta to 500 respondents.

Note, this survey was completed prior to attack in Israel.

If an election were held today, 39% of committed voters would vote Conservatives with the Liberals at 26%, the NDP at 18% and the Greens at 4%. The BQ is at 33% in Quebec.

Since our last survey, the Conservatives are down 2 while the Liberal and NDP vote share is steady.

Regionally, the Conservatives remain well ahead in BC, Alberta, Saskatchewan, and Manitoba. The Conservatives lead by 11 in Ontario and Atlantic Canada. In Quebec, the BQ is ahead by 6 over the Liberals.

Other questions we track have also remained relatively stable.

Only 27% of Canadians approve of the job performance of the federal government, down 2 since our last survey, and the lowest we have ever measured. 55% disapprove.

Justin Trudeau’s personal image remains overly negative with 27% have a positive opinion of him compared with 55% with a negative view. Both are largely unchanged from last wave.

Pierre Poilievre has about equal numbers of people have a positive and negative view – 36% positive and 35% negative.

Jagmeet Singh, who faces the NDP convention this weekend, has 34% positive and 32% negative.

Singh is viewed more favourable by women than men, and has a much higher net favourable rating among those aged 18 to 29 than among other age groups.

Among NDP supporters, 81% have a positive view of Mr. Singh, while 1% have a negative view. Mr. Singh is also well liked among most Liberal supporters. 46% have a positive view compared with 13% who have a negative one. In contrast, Conservative generally dislike the NDP leader. 15% have a positive view compared with 60% who have a negative one.

Trudeau vs. Poilievre

In this survey, we asked a new set of questions to gauge how Trudeau and Poilievre compare head to head on several policy areas. Trudeau has an advantage over Poilievre on two items – dealing with climate change and making childcare more affordable. In both cases, more people think Trudeau is better able to handle those issues than Poilievre.

But on every other item we tested, Poilievre easily beats the Prime Minister. Most striking, when it comes to dealing with the prospect of Donald Trump as US President, 37% think Poilievre is better able to handle that compared with 28% who think Trudeau is.

On other issues, like managing the economy (Poilievre +15), building more housing (Poilievre +18), and making life more affordable (Poilievre +17), Mr. Poilievre has a clear advantage over the Prime Minister.

The Upshot

According to Abacus Data Chair & CEO, David Coletto: “It doesn’t appear that the events over the past three weeks – Zelenskyy’s visit, the House of Commons honouring someone who fought in a Nazi unit, and the news surrounding India and the murder of a Canadian Sikh leader – have had much impact on political opinions.

The Liberals remain well behind the Conservatives in vote intention. More Canadians have a positive impression of Poilievre than any other major party leader and the government’s approval rating, while no worse than a month ago, is certainly no better.

Change remains in high demand and the Liberals have been unable to reverse the drop in approval that they experienced over the summer.”

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Methodology

The survey was conducted with 1,985 Canadian adults from September 28 to October 5, 2023. A random sample of panelists were invited to complete the survey from a set of partner panels based on the Lucid exchange platform. These partners are typically double opt-in survey panels, blended to manage out potential skews in the data from a single source.

The margin of error for a comparable probability-based random sample of the same size is +/- 2.2%, 19 times out of 20.

The data were weighted according to census data to ensure that the sample matched Canada’s population according to age, gender, educational attainment, and region. Totals may not add up to 100 due to rounding.

This survey was paid for by Abacus Data Inc.

Abacus Data follows the CRIC Public Opinion Research Standards and Disclosure Requirements that can be found here:  https://canadianresearchinsightscouncil.ca/standards/

ABOUT ABACUS DATA

We are the only research and strategy firm that helps organizations respond to the disruptive risks and opportunities in a world where demographics and technology are changing more quickly than ever.

We are an innovative, fast-growing public opinion and marketing research consultancy. We use the latest technology, sound science, and deep experience to generate top-flight research-based advice to our clients. We offer global research capacity with a strong focus on customer service, attention to detail, and exceptional value.

We were one of the most accurate pollsters conducting research during the 2021 Canadian election following up on our outstanding record in 2019.

Contact us with any questions.

Find out more about how we can help your organization by downloading our corporate profile and service offering.

Canadian Politics

How do Albertans and Canadians feel about Alberta withdrawing from the Canada Pension Plan?

From September 28 to October 5, 2023 Abacus Data conducted a representative online survey of 1,985 Canadian adults that included an oversample of 500 in Alberta. The survey asked two questions about the Alberta government’s plan to withdraw Alberta from the Canada Pension Plan.

Two Worlds: Alberta and Canada

First, when asked how closely they are following news and information about the Alberta government’s plan to withdraw Alberta fro the Canada Pension Plan and establish a separate public pension plan for Alberta, almost half of Canadians (43%) said they hadn’t heard about it before being asked about it in the survey. Another 38% had heard about it but were not following it. Only 19% nationwide were following it fairly or very closely.

But in Alberta, the result, as expected, was very different. Overall, 90% are aware of the government’s plan to withdraw from the CPP and more than half are following it fairly or very closely. This is very much a live issue in Alberta but one that hasn’t yet taken hold in other parts of the country.

Is it a good or bad idea?

Nationally, among those aware of the plan to withdraw Alberta from the CPP, 44% of Canadians think it is a bad idea, 17% think it is a good idea, while another 17% think it is an ok idea. 22% don’t know.

In Alberta, 52% think it’s a bad idea while 19% think it’s a good idea. Another 15% say it’s ok with 14% unsure. Even if you combine those who think it’s a good idea and an ok idea, that only comes out to 34%.

Albertans are the most likely to think withdrawing from the CPP is a bad idea (52%) as do close to half of those living in BC, Manitoba and Saskatchewan, Ontario, and Atlantic Canada. Only in Quebec, where the province has had it’s own pension plan since 1966.

Demographically, those over 60 are most likely to think it’s a bad idea (59%) while only 1 in 4 Canadians under thirty, aware of the Alberta government’s plan, feel the same way.

Politically, at the federal level, a majority of Liberal and NDP supporters aware of Alberta’s plan think it’s a bad idea while Conservatives are split. 39% think it’s a bad idea, 22% think it’s good while 16% think it’s an ok idea.

In Alberta specifically, the same age dynamic exists. Older Albertans are far more likely to describe the plan as a bad idea than younger Albertans.

Politically, almost all Alberta NDP supporters think withdrawing from the CPP is a bad idea. Among UCP supporters, 30% think it’s a good idea, 22% think it’s an ok idea, and 29% think it’s a bad idea. UCP supporters are quite divided.

Also interestingly, those following the issues more closely are no more likely to think it’s a good idea than those who are only aware of it. Among those following very or fairly closely, 22% think it’s a good idea, 12% think it’s an ok idea and 55% think it’s a bad idea. Only 10% of this more engaged group are unsure.

The Upshot

According to Abacus Data CEO David Coletto: “This poll reveals a stark contrast in awareness and opinions between Albertans and the rest of Canada regarding Alberta’s plan to withdraw from the Canada Pension Plan (CPP). While Albertans are overwhelmingly aware of the proposal, with 90% having heard about it, the broader Canadian population seems to be largely uninformed, with 43% having no prior knowledge of the plan. This indicates that the issue is of significant regional interest in Alberta but has yet to gain widespread attention nationally.

Opinions on the matter, however, tend to lean negative in both Alberta and the broader Canadian population. Among those aware of the plan, 52% of Albertans view the withdrawal as a bad idea, a sentiment shared by 44% of Canadians nationwide. Interestingly, this skepticism is shared across various provinces, age groups, and political affiliations, with older populations, in particular, being more likely to oppose the move. In Alberta, political lines also highlight divisions with the UCP supporters being split on the issue, while Alberta NDP supporters largely disapprove of the withdrawal.

The demographic and political breakdowns underscore a generational divide, with younger Canadians and Albertans less likely to view the withdrawal as negatively as their older counterparts. The data also emphasizes the role of regional dynamics and the influence of political affiliations in shaping opinions on provincial matters. As Alberta’s government considers moving forward with its plan, the division within its own province, as well as the larger Canadian context, cannot be ignored. The Premier and those who support withdrawing Alberta from the CPP have their work cut out for them and the implications on federal politics haven’t yet been felt given so few Canadians outside of Alberta even know this is an idea being discussed.”

Methodology

The survey was conducted with 1,985 Canadian adults from September 28 to October 5, 2023. A random sample of panelists were invited to complete the survey from a set of partner panels based on the Lucid exchange platform. These partners are typically double opt-in survey panels, blended to manage out potential skews in the data from a single source.

The margin of error for a comparable probability-based random sample of the same size is +/- 2.2%, 19 times out of 20.

The data were weighted according to census data to ensure that the sample matched Canada’s population according to age, gender, educational attainment, and region. Totals may not add up to 100 due to rounding.

This survey was paid for by Abacus Data Inc.

Abacus Data follows the CRIC Public Opinion Research Standards and Disclosure Requirements that can be found here: https://canadianresearchinsightscouncil.ca/standards/

Canadian PoliticsProvincial Politics

How the Housing Crisis Is Impacting the Goals and Well-Being of Younger Canadians

As part of a month-long detailed investigation of the housing crisis in Canada, Abacus Data and the Canadian Real Estate Association (CREA) conducted a large, national survey of 3,500 Canadian adults (18+) from September 22 to 28, 2023. In our first report, we examine how the housing crisis has impacted Canada’s youngest cohort – those aged 18 to 34 (n=863). The data reveals a story of profound challenges faced by these young Canadians that extends far beyond financial struggles, delving into the heart of their lives and aspirations.

Concerns with the Housing Market

The concern about the state of housing in Canada is evident among young Canadians. When contemplating the key issues that should top the federal government’s agenda, a resounding 89% of young Canadians emphasize that ensuring housing affordability should be a top priority. Correspondingly, a significant four out of five express their unease about housing affordability, while 62% have seen their concerns intensify in recent months. Considering these pressing concerns, it becomes imperative to delve deeper into the burden this situation places on young Canadians.

Financial Struggles: A Quiet Burden

The current housing crisis has had a significant impact on young Canadians, presenting them with significant financial challenges. Notably, an alarming 47% of young Canadians find themselves burdened with moderate to high levels of debt, a striking contrast to their older counterparts. Additionally, the data paints a sobering picture, revealing that nearly two-thirds (60%) of young Canadians are currently grappling with the precarious reality of living paycheck to paycheck, signifying an unsettling financial instability.

Amidst these financial pressures, the need to adjust monthly budgets due to housing expenses has become an unfortunate reality for 53% of young Canadians. They reported having to make financial adjustments to food and groceries (68%), emergency savings (57%), investments (49%), and debt payments (51%).

Worries About Housing Payments and Future Stability

Housing payments continue to be a source of concern for young Canadians. An overwhelming 89% of young Canadians have worried about paying their mortgage or rent in recent months (among those who have a mortgage/pay rent). This enduring financial unease underscores the persistent nature of the housing crisis.

Adding to their worries is the lingering uncertainty that casts a long shadow over their future. An overwhelming four in five (81%) express deep-seated concerns regarding the enduring repercussions of the housing market on their financial stability, a sentiment that resonates far more profoundly among young Canadians than their older counterparts.

Personal Impact: A Complex Reality

For these young Canadians, the housing crisis isn’t merely a financial struggle – it’s impacting their mental health and overall well-being.

Nearly two-thirds of young Canadians (61%) revealed that their financial situation, shaped by the housing crisis, negatively affects their mental health. Further, the survey also finds that the housing crisis has impacted nearly every facet of young Canadians’ lives, including their overall quality of life (73%), finances (76%), physical health (59%), family dynamics (56%), and social lives (58%) more than any other age group.

The housing crisis isn’t only influencing day-to-day life; it’s shaping major life decisions. A significant 55% of young Canadians who intend to have children admit that it has influenced the decision and timing of starting a family. Some are choosing to have fewer or no children (27%), while others are temporarily postponing family planning (28%).

The looming housing crisis is also driving young people to reconsider where they live and work. Most striking, younger Canadians are most likely to report that they are considering moving to find more affordable housing. Specifically, 46% are contemplating a move within their province, 41% are considering changing provinces, and 34% are even pondering leaving Canada all together. The risk of a brain-drain from unaffordable communities, provinces, and Canada entirely is real and acute.

A Resounding Message – Governments Haven’t Done Enough

The message from young Canadians is unequivocal: governments have not done enough to address the housing crisis. This sentiment cuts across all levels of government—federal, provincial, and municipal —painting a stark picture of disillusionment with the efforts made thus far. An overwhelming 63% express dissatisfaction with the federal government’s response, while 62% believe that provincial governments have fallen short. Meanwhile, 58% feel that municipal governments have not done enough to tackle the crisis head-on. This collective critique underscores the urgent need for more robust, comprehensive measures at all levels.

A Unified Call for Priority and Action

Young Canadians have spoken with one voice when it comes to the priority placed on housing affordability. A resounding 77% assert that it should be a top priority for the federal government, while 76% hold the same view for provincial governments. At the municipal level, 70% emphasize the importance of prioritizing housing affordability. However, a disconcerting perception gap emerges when evaluating the government’s current actions. Only 51% believe that the federal government is treating housing affordability as a top priority today, while 50% believe their provincial government sees it as a top priority, and a slightly lower 47% share the same sentiment about their municipal governments. This disconnect underscores a sense of frustration and skepticism about the government’s commitment to translating priorities into tangible actions.

Dissatisfaction with Leadership – A Shared Sentiment

Across all levels of government, young Canadians express profound dissatisfaction with the leadership’s response to the housing crisis. An overwhelming 73% express dissatisfaction with the federal government, while 72% share the same sentiment regarding provincial governments. Municipal governments also face considerable discontent, with 69% of young Canadians dissatisfied with their leadership. This collective frustration underscores a growing impatience with the perceived ineffectiveness of government efforts.

Blame Allocation – Federal, Provincial, and Municipal Roles

Young Canadians exhibit a nuanced understanding of shared responsibility in the        housing crisis. While they firmly place blame on the federal government (49%) for its role in the crisis, they also hold provincial governments (40%) accountable. Only 11% believe that municipal governments are more to blame, suggesting a recognition that housing affordability is a challenge requiring broader, higher-level government intervention.

Seeking Solutions

Among the solutions that resonate most strongly with young Canadians is the expansion of the Home Buyers Plan for first-time homebuyers, with a significant 60% supporting increasing the plan’s limit from $35,000 to $50,000. This suggests that young Canadians are acutely aware of the need to make homeownership more accessible, especially for those taking their first steps into the real estate market.

Interestingly, young Canadians diverge from older generations on certain housing solutions. They are more inclined to support measures such as limiting tax-free gains on primary residences (47%) and changing the mortgage stress test to ensure buyers can afford an uninsured mortgage if interest rates rise (44%). These unique approaches reflect a willingness to explore unconventional avenues to tackle the housing crisis head-on.

Incentives and Policies – A Comprehensive Approach

Young Canadians understand that solving the housing crisis requires a multifaceted approach. They align with older age groups in supporting a range of incentives and policies. A substantial 63% express support for a First Home Savings Account, while 58% endorse the Housing Accelerator Fund. The Underused Housing Tax, Home Buyers Plan, and fostering collaboration among all levels of government and housing stakeholders also garner strong support, all with the aim of finding holistic solutions to the housing crisis.

The Upshot

This research vividly highlights that the housing crisis in Canada transcends mere economic challenges. It has evolved into a deeply personal and emotional journey for young Canadians, profoundly shaping their lives, influencing critical decisions, and imposing significant financial strains. Beyond the statistics and figures, it’s a multifaceted challenge that is redefining their very existence, compelling them to navigate difficult choices, and frustratingly delaying crucial life milestones.

The data underscores that young Canadians are not merely asking but demanding swift and comprehensive actions to address the housing crisis. Their profound dissatisfaction with government responses, their unwavering insistence on housing affordability as a top priority, and their collective attribution of blame emphasize the urgent need to confront this pressing issue head-on. The housing crisis is not an abstract concept for them; it’s a stark reality that has significantly influenced their political perspectives, igniting a fervor for immediate public policy solutions.

As the concerns over Canada’s housing crisis continue to grow among young Canadians, their frustration and disillusionment may find expression in political action. This potential surge in political engagement could herald a transformation in voting patterns, with younger citizens increasingly throwing their support behind candidates who champion affordable housing policies. Such a shift could wield considerable influence over electoral outcomes.

Furthermore, the housing crisis could give rise to inter-generational tensions, as older generations, who secured housing more easily, may be perceived as benefiting from policies that disadvantage younger ones. These tensions could permeate political debates and policy discussions, creating a dynamic that demands careful consideration.

Lastly, the enduring impact of the housing crisis may extend beyond the present moment. It could shape the long-term political engagement and ideologies of young Canadians. If a substantial portion of this demographic continues to grapple with economic challenges stemming from housing costs, their political convictions and participation could be molded for years to come, influencing their preferences for specific policies and political parties.

Overall, Canada’s housing crisis among 18-34-year-olds is not just a policy challenge; it’s a political awakening. Its impact on politics will depend on various factors, including the severity of the crisis, the responsiveness of political leaders, and the effectiveness of measures taken to address it. As young Canadians demand change, the political realm must listen to their call, recognizing that their votes, aspirations, and perspectives possess the power to transform the course of Canadian politics.


Methodology

The survey was conducted with 3,500 Canadian adults from September 22 to 28, 2023. A random sample of panelists were invited to complete the survey from a set of partner panels based on the Lucid exchange platform. These partners are typically double opt-in survey panels, blended to manage out potential skews in the data from a single source.

The margin of error for a comparable probability-based random sample of the same size is +/- 1.66%, 19 times out of 20.

The margin of error for a comparable probability-based random sample of those aged 18 to 34 (n=863) is +/- 3.34%, 19 times out of 20.

The data were weighted according to census data to ensure that the sample matched Canada’s population according to age, gender, educational attainment, and region.

This survey was paid for by Abacus Data Inc.

Abacus Data follows the CRIC Public Opinion Research Standards and Disclosure Requirements that can be found here: https://canadianresearchinsightscouncil.ca/standards/


About Abacus Data

We are the only research and strategy firm that helps organizations respond to the disruptive risks and opportunities in a world where demographics and technology are changing more quickly than ever.

We are an innovative, fast-growing public opinion and marketing research consultancy. We use the latest technology, sound science, and deep experience to generate top-flight research-based advice to our clients. We offer global research capacity with a strong focus on customer service, attention to detail, and exceptional value.

We were one of the most accurate pollsters conducting research during the 2021 Canadian election following up on our outstanding record in 2019.

Contact us with any questions

Find out more about how we can help your organization by downloading our corporate profile and service offering. 

BlogCanadian PoliticsGenerational ChangeHousing