(The following was written by David Colletto and Eddie Sheppard for Abacus Data)
CANADA: For years, conversations about housing affordability have focused primarily on the cost of buying or renting a home. But as affordability pressures continue to shape household decisions,
Canadians are increasingly paying attention to another part of the equation: what it costs to live in that home once they’ve moved in.
Our latest research with the Canada Green Building Council (CAGBC) suggests that energy costs are becoming a growing affordability concern for many households (see the full report).
Rising utility bills are adding pressure to already strained budgets, and concerns about future price increases are creating additional uncertainty.
ADVERTISEMENT:
At the same time, Canadians appear to be converging around a potential solution. Energy-efficient homes and buildings are increasingly viewed not simply as an environmental choice, but as a practical way to lower costs, improve affordability, and create greater financial stability.
Perhaps most notably, there is broad support for governments playing a role in helping make those solutions more accessible.
Utility Costs Are Becoming an Affordability Issue
Many Canadians are already living with little financial room to manoeuvre.
Only 52% describe themselves as financially comfortable today. The rest are either just getting by (33%) or struggling financially (15%). That pressure is not felt evenly. It is more acute among younger Canadians (30-44), renters, and lower-income households, the same groups that are often most exposed to rising housing and household costs.
ADVERTISEMENT:
Housing is a big part of that pressure. Half of Canadians say housing-related expenses consume at least 50% of their monthly household budget.
Among those aged 18 to 29, that rises to 68%. Among renters, it is 64%.
ADVERTISEMENT:
That leaves many households with very little capacity to absorb additional costs.
And this is where utility bills become part of the affordability story.
Nearly three-quarters of Canadians (72%) say their household utility costs have increased over the past year. 60% describe their energy bills as at least a moderate financial burden.
Among Canadians under 45, more than seven in ten say energy costs are a meaningful strain on their household finances.
To see the full report, check it out here at Abacus Data report
