Many Canadians spend as much as half of their incomes on rent

by Ephraim Vecina on 23 Oct 2019

Around 800,000 households across Canada set aside more than 50% of their incomes on rental fees, a recent analysis by the BC Non-Profit Housing Association has found.

Overspending has increasingly become a feature in the Canadian housing market rather than a bug, with the advent of easy credit. Approximately 1.8 million households nationwide are also dedicating more than 30% of their incomes on housing expenses.

“Paying too much for rent has become the new normal,” association CEO Jill Atkey said in an interview with Global News. “That takes a real toll on health, on time and quality of life.”

Additional data from the Credit Counselling Society indicated that this spending is a major driver of anxiety, especially considering the pressures of inflation and rising costs of living.

One out of three Canadians admitted that their debt loads have increased since last year, and that they are spending more than their net income. Fully 43% are forced to live paycheque to paycheque, while 83% indicated anxiety over growing daily living costs.

“Canadians continue to rely on their credit cards or lines of credit to supplement costs of living,” CCS president Scott Hannah said. “If the economy continues to slow amidst trade tensions and other factors, Canadians need to prepare now for a potential recession in the future.”

During Q2 2019, Canada’s average household debt ratio dropped to 177.1% of disposable income, slightly lower than the previous quarter’s reading of 177.6%. Canadians are also shouldering a debt load of an average of $30,000 each – far above the $12,000 level just 20 years ago.

Post a Comment

Most Trending News

Strategies to Predictably, Reliably Grow Your Real Estate Business
News

This 7-day free masters summit will provide you with all the tips and tricks you need to get started in real estate investing, how to expand your real estate portfolio, and much more.

Read More
June virtual conference promises to turn agents into millionaires
News

“The easiest way to prove to people you can help them is to just start helping them, no strings attached,” said Craig Proctor, the master realtor who revolutionized the team concept.

Read More
Lead Gen Masters Summit
News

Are you struggling to obtain new, qualified leads as a real estate professional? Merged Media is hosting an online conference on May 13th to discuss digital marketing tactics to grow your portfolio.

Read More