Over a Third of Young Canadians Worry About Housing Costs, Overall Affordability Concerns Easing: Survey

A real estate sign is shown in Vaughan, Ont., on Sept. 12, 2024. The Canadian Press/Paige Taylor White

Canadians are slightly less concerned about housing affordability compared to last summer, but housing costs remain a worry for many young adults, a new survey suggests.

A survey published Jan. 10 by Nanos Research found that 25 percent of Canadians are “worried” or “somewhat worried” about being able to pay their housing costs in the next month, while 72 percent express little to no concern about their upcoming housing expenses.

Thirty-five percent of Canadians in the 18 to 34 age group and 30 percent of those aged 35 to 54 remain more likely to worry about housing costs than older respondents. Only 16 percent of Canadians aged 55 and older report similar apprehensions.

However, affordability concerns have decreased since last summer, even within the younger group, the survey found. In August 2024, 52 percent of Canadians aged 18 to 34 were worried about housing costs compared to current 35 percent.

The Bank of Canada cut its key interest rate by 50 basis points to 3.25 percent in December. The central bank has cut rates five times in the past six months to bring inflation down to its 2 percent target.

Inflation continues to impact the financial decisions of Canadians, the Nanos survey found. Fifty-four percent of respondents reported cancelling major purchases or finding it difficult to afford basic necessities due to rising prices. This figure is largely unchanged from August 2024.

The survey also found an increase in the percentage of Canadians reporting difficulty affording necessities, rising from 15 percent last August to 27 percent in this wave. At the same time, there was a decrease in the percentage of Canadians reporting both cancelling a major purchase and struggling to pay for necessities, from 23 percent in August 2024 to 8 percent in this survey.

Young Canadians are particularly vulnerable to the effects of inflation, with 37 percent of those aged 18 to 34 reporting difficulty in affording basic necessities. By comparison, just 19 percent of Canadians aged 55 and older say they face similar struggles, the survey found. Overall, 42 percent of respondents said inflation has not been a major issue for them.

Looking ahead, the survey found that Canadians’ outlook on the standard of living for future generations is largely pessimistic. Sixty-eight percent of respondents said they believe the next generation will experience a lower standard of living than the current one, which is consistent with the findings from Nanos’s previous survey. Younger Canadians, particularly those aged 18 to 34, are more likely to hold this belief, with 78 percent expressing concern about future economic conditions. In contrast, only 62 percent of Canadians aged 55 and older share this view.

The Nanos poll, conducted between Nov. 30 and Dec. 4, 2024, surveyed 1,084 Canadian adults. It has a margin of error of plus or minus 3 percentage points, 19 times out of 20.