Is The Housing Market Correction Here?

We have been hearing about a potential housing market correction coming to Canada for some time now. It has been years that stories have circulated about a housing bubble in Canada and both Vancouver and Toronto are among the most expensive places to live in North America.

They aren’t the only areas of BC or ONT that are expensive either. The cost of living has been getting arguably worse and it is on the minds of many Canadians.

The recent talk of a rate hike from the Bank of Canada also has some worried, with reports suggesting that a housing correction is potentially taking hold and that it could be significant, according to some experts.

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Critics have suggested however that no matter how much those prices might fall, or for any correction to finally show itself, it might not be enough to bring home prices anywhere close to affordable in places like Vancouver and Toronto.

Prices on new homes being built in the country have also reportedly become more expensive too, growing 7.9% compared to June last year. It isn’t uncommon to see homes around the Metro Vancouver region for well over $1 million, including apartments and townhomes.

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There are not many young working professionals who can afford these prices and many young adults today have already given up on the dream of eventually ever owning a home.

Even those families who are earning over $100k per year might still struggle to afford a detached home of their dreams in the city.

Decades To Save The Down Payment

For those expensive homes around Vancouver, Toronto, and other areas, according to a previous report from report from the National Bank of Canada (NBC) it could take decades for individuals and families to save up the necessary down payment.

Is the housing market correction coming? Is it already here? Does Canada need a housing market correction?

While home ownership is completely out of reach for many Canadians in areas like Vancouver, Toronto, and other cities, there are millions of Canadians who do own their homes.

Trying to navigate that situation of addressing the problem of a housing bubble, while also not making it worse with those actions that might be taken, has appeared to be a difficult task to balance. Things aren’t rapidly getting better right now in terms of affordability for many Canadians who are struggling with gas, rent, food, and more.

Canadians Eating Less Due To Rising Prices

Millions of families are having to cut back because of rising inflation and the increasing cost to the standard of living around Canada and elsewhere. Multiple surveys have shown that many Canadians are doing worse financially this year than they were last year.

Not only that but another report has shown that almost a quarter of Canadians might be eating less because of the rising prices of food and everything else.

According to that report on the current standard of living for Canadians it looks like about 1 in 5 Canadians reported going hungry at some point in time between March 2020 and March 2022. Canadians are struggling with the rising cost of food.

There are many Canadians who need help to battle this environment of food inflation and more and it is clear that inflation is a top concern to many Canadians these days.

Through the pandemic we had already seen food banks and other community resources see an increase in demand, some of them were struggling to keep up. Now there is even more pressure as families across the country struggle to afford basics like rent and food.

May Food Inflation 9.7%

Food inflation was up to 9.7% around April/May this year and food isn’t the only area where Canadians are seeing prices climb.

For one food bank in Toronto they said that they’ve seen a drastic increase in the number of visitors that they are getting, thousands of new families are turning for help.

To try and help Canadians politicians have offered small rebates in some circumstances like the gas rebate in BC, or announced a pause on gas tax in areas like Ontario. Still, there are many struggling and wondering when more is going to be done to help. How bad is the situation going to get before it gets better? That is a question that many are no doubt asking themselves right now.

Surveys show that overall Canadians are feeling pessimistic, worried about the future, and feeling a great deal of anxiousness over the economy and state of ongoing and unchecked inflation.

Vancouver Ranks As One Of Most Expensive Places to Live

Vancouver is one of the most expensive cities to live in North America. It recently came in 3rd place on a list of the most expensive, coming in ahead of other areas like Toronto and Mississauga.

This isn’t the first time that Vancouver has ranked among the most expensive places to live in Canada.

The city has held that title previously and it is no secret that the cost of living in Vancouver is continually growing out of reach for many.

Many across BC and in other provinces are finding it difficult, almost impossible, to land the home of their dreams because of the high cost of living here.

For some they’ve already sought to look elsewhere to see what they might find.

There are many full-time working individuals, some who might have 2 or 3 jobs even, who could still struggle at these prices and not have the income to qualify for the mortgage that is needed in an area like Vancouver or Toronto.

Nearby cities aren’t that much cheaper for buying houses and renting either.

You will find high prices across the Metro Vancouver region and multi-million dollar houses all around cities like Langley, Surrey, Port Coquitlam, Coquitlam, and other areas. As the affordability has worsened around Canada it has increased pressure from Canadians, they haven’t been shy in vocalizing their concerns about this issue.

High Cost of Living

Not only is Vancouver one of the most expensive cities in the country to live in but the city has also previously been ranked as one of the least affordable cities to live in the world.

Increasingly, Canadians are spending more of their income on shelter costs and some recent reports have suggested that if mortgage payments go much higher then it could mean more Canadians will be pushed to sell their home.

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Giving Up On The Dream of Owning A Home

With incomes for many not keeping up with the high cost of housing it is no wonder that many young Canadian families today are feeling the stress and why a number of Canadians have given up on the dream of ever owning a home at some point.

For those who do not own a home and who continue to rent they too are at risk of increasing rent prices.

It is no secret that many cities around Canada have had an affordability issue and the question is what political representatives might look to do about it.

The cost of living is one of the most important issues for Canadian voters.

Canadians have been hearing for years that this issue is being addressed in one way or another but here we are now in 2022 and Vancouver still ranks as one of the least affordable cities in North America.

Rent prices are climbing higher in multiple areas around this province and elsewhere, along with the rising inflation, which is causing great concern for many Canadians these days as reports have repeatedly suggested.

Some estimates suggest that as many as 80% of Canadians or more are worried that inflation is going to make things less affordable.

For those who are living in places like Vancouver, Toronto, and other expensive cities, they might not have much room to absorb those increases due to the high cost of living there, people are struggling as the cost of living worsens.

Survey: Around 31% Of Canadians Not Earning Enough to Pay Their Bills

According to a recent survey by Ipsos it looks like roughly 31% of Canadians or more aren’t earning enough money to pay their bills.

Inflation is a big issue that is on the minds of many and for Canadians that already means looking where to save money and being more concerned about their financial future. Inflation and the cost of living is a top concern for millions of Canadians these days.

Canadians around the country are struggling to afford what they need and to keep a roof over their head and that is further reflected in this recent poll by Ipsos.

The survey showed that roughly 31% of Canadians don’t have enough to pay their bills and their debt, they don’t have a lot of room to absorb an increase in the cost of living.

This means that for some it could be just a few hundred dollars or more that would make them unable to meet their financial obligations and that means that inflation is more of a worry than ever. Gas prices have been rising, food prices, rent prices, and this is causing more Canadians to wonder when things might get better.

60% of Canadians worried about inflation

Other previous surveys on this topic have suggested that as many as 6 in 10 Canadians might be worried about inflation, the cost of living, and the general ability to feed their families.

If things get more expensive for gas, food, rent, and more, then it could mean more Canadian families are facing food insecure households and struggling with poverty and a decreased standard of living.

Food Banks See Rise in Demand Following Pressure on Gas Prices

The food banks around Metro Vancouver have seen increased pressure through the pandemic as did others around the world and right now inflation and gas prices are wreaking havoc on Canadian families still. Millions of people are concerned about the price of gas these days and the rising inflation.

The cost of living is a top concern for many Canadians and that was made clear through the last election cycle. One candidate or another was offering to give more to Canadians to help them rise up across the country.

It might be help with child care, food costs, home ownership, there are many issues involved with the cost of living for Canadians.

It looks like gas prices are now sending more clients to the Metro Vancouver food banks who are unable to keep up with the rising costs. Over time this pressure on gas costs and general living expenses surrounding inflation etc, are expected to fuel more pressure on those social community resources that are there to try and make up that difference.

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Can’t keep up with cost of living

Surveys have found that Canadians are struggling right now to keep up with the rising cost of living. Those around Vancouver are seeing some of the highest gas prices in North America and for individuals who drive long distances to work it is going to have a big impact on their wallets.

As more Canadians get squeezed we can only assume that pressure will rise again for community resources like the food bank and others.

Inflation is causing a tremendous amount of financial anxiety for many these days, with over half of the country possibly looking at falling behind with the growing cost of living, according to data from the Angus Reid Institute.

Gas price around Metro Vancouver right now are well above the $2 mark per litre, many $2.10 or more all over the Lower Mainland. Now more than ever Canadians are going to be looking to try and save where they can and that even means looking around for the cheapest gas options.

The taxi industry has already stepped in reportedly calling for relief on the issue with the gas prices surging.

How high will gas prices get in Metro Vancouver?

The prices for gas in Vancouver are also expected to get even higher when a new carbon tax goes through which is expected at the beginning of April 2022.

Many in the region are already struggling at these prices and if they go higher it will only fuel that growing pressure for some relief and something to be done about the situation.

The pressure of inflation and gas prices on Canadians is one that hasn’t been overlooked by political parties.

The issue has already fueled some political response, like that from the NDP in Ontario with the Fairness in Petroleum Products Pricing Act recently. As well as from the Conservatives, with the new Conservative leader candidate Pierre Poilievre vowing that he would seek an end to the carbon tax and he has also spoken out frequently about the rising cost of living and inflation around the country.

For now it looks like the NDP in BC are not going to be rushing on any potential gas measures to respond to the increasing prices.

Canadians Struggle to Keep Up With Growing Cost of Living

Inflation is making it harder for many Canadians to get what they need. The country is seeing higher inflation than that which has been seen in years and recently increased to 5.1% in Jan of this year.

As things rise with regard to the cost of living around the country it means those with incomes that are unable to adapt to that increase in prices are going to be struggling.

The inflation in Canada pushing prices up for food and other daily expenses is something that will leave those individuals with less ability to get their necessities and more.

Canadians are already responding by making cuts to their daily habits to get through.

It could mean using coupons, buying bulk items, looking to eat less, looking to buy off brand, cutting out meat or other items. These are just a few steps that people have taken to address the rise in costs.

Over half of Canadians are struggling to keep up with the cost of living

One recent survey showed that it might be as much as half of Canadians who could be struggling to keep up with this inflation or costs of living rising in the country.

For those who are around the Metro Vancouver region they are also seeing some of the most expensive prices for gas in all of North America.

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The cost of living is a top issue for Canadian voters today. Come voting season we can expect that many Canadian representatives will start talking about this issue once more, vowing to address it in one way or another.

Canadians who are struggling today want to see action sooner rather than later. As things get more expensive it only means more will struggle to afford what they need and there could be devastating consequences for those who won’t be able to keep up.

Rising cost of rent and living in Canada

Right now rents in Vancouver are showing about a 16% increase with a price average at around $2,200 for an apartment to rent in Vancouver.

Toronto is around a 8% increase at $1,600 on average for an apartment in the city, according to recent data from the popular rental platform, Zumper.

Some other cities are seeing jumps around 13% in price for rent, 17%, 20%, or more.

Not every Canadian has a salary that is going to be able to keep up with these increases in the cost of living around BC and elsewhere around the country.

More than half of Canadians right now are estimated to be struggling with things currently, and social advocates and financial experts have warned that if things continue to economically decline with regard to the cost of living and inflation it will only push more into that struggle.

30 year high: Canadian inflation grows to 5.1% in Jan

Canada is seeing a 30 year high right now with inflation after Stats Canada recently announced that the annual pace of inflation had grown to more than 5% and is now at 5.1% in January.

This is said to be the highest that has been seen since 1991. The inflation in Canada is also reportedly fueling more pressure for interest rate hikes.

It is expected that the BOC will look to try and tackle that inflation and interest rate increases have once again coming up for discussion in Canada.

The 5.1% increase in inflation in Canada is driving prices higher for Canadians and increasing the cost of living for millions around the country. From food to gasoline and more.

The recent election saw that this was a big issue for Canadians, affordability around the country, and now once again inflation is a concern with many.

The BoC deputy gov has suggested that they do expect rates to eventually come back down and that perhaps this is something that might happen quickly sometime this year.

However, if things don’t go as planned there are supposed to be tools that they can turn to in an effort to tackle inflation. A policy change, they warn though, could bring risks along with it even though it is intended to possibly help heal the situation.

As for Canada’s federal Housing Minister he recently indicated that perhaps the government doesn’t want to engage in any change or action that might cause pain for some smaller ‘mom and pop’ real estate investors, or negatively impact them in the long run.

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Pressure rising for interest rates to be increased

It is a difficult situation to be in because there are worries that increased interest rates might hurt homeowners and push some into a territory of struggling with affordability for their homes.

Meanwhile, left unattended there are concerns with many Canadians that they will perpetually be priced out of their cities and communities.

The cost of housing and home affordability is one of the biggest concerns with Canadians today. It is expected that this will continue to be a top issue in the country so long as many working Canadians struggle to keep up with trying to afford a home for themselves.

The next policy announcement is expected to be coming on March 2 2022. This is when some suspect there might be that announcement of a rate hike for interest rates in Canada. For now though they’ve suggested that they haven’t arrived at that decision firmly.

Do Canadians support rate hikes?

Some previous polls have suggested that there might be a bit of support for seeing those rate hikes in Canada, but there are others of course who might never want to see that happen. Or at least not any drastic changes.

For a number of Canadians who own their property, some experts have warned that it could mean struggling to afford those changes if things were to dramatically rise in housing costs.

Inflation in Canada is making life harder for many who are already trying to get creative with affording what they need.

Shopping habits are changing for a number of Canadians that are trying to make their dollars go further. It might mean shopping more at places like the dollar store, buying in bulk, using coupons, looking for more deals, signing up for points memberships etc, there are multiple ways Canadians have been looking to tackle inflation.

On average, with inflation that Canadians are facing this year it is expected that it could mean Canadian families will be spending hundreds more on their grocery bills and other goods.

Inflation Diary: food getting more costly for Canadian charities

With the rising inflation around Canada this is making food more costly for not only Canadian families but for charities like food banks and other groups as well.

They are also seeing a rise in demand for food too. For the food bank in Chilliwack for example, they reportedly estimate that they have seen about a 25% bump in demand for help with food in the community.

For some who are buying and packing up groceries to give to others in the community they are suffering with this increase in cost, it could mean not being able to help as many in the future if things get worse.

Food banks continue to be in need of donations and help from communities around BC as they see things get more expensive and they see demand for their services also rise.

Responding to food insecurity around BC

There are a variety of community responses we have seen to the growing need for food help and dealing with food insecurity in Canada.

One of those has been to open a food market in Vancouver that allows customers to pay what they can afford. Other ideas have been community fridges that get supplied by volunteers in the community and they’ve been placed already in different BC cities.

Food banks alone cannot meet the need that is there for food insecurity around BC and the country.

There are a large number of Canadians who are food insecure and who have had to already change their buying habits because of that inflation.

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1 in 7 Canadians dealing with food insecurity

Some estimates suggest that it might be 1 in 7 Canadians who are dealing with food insecurity and inflation is already increasing costs for Canadians for their groceries around BC and elsewhere.

Families can already feel that decrease in their standard of living and have been adjusting for it in a myriad of creative ways. It might be purchasing off-brand goods, spending less altogether, dropping certain favorite food items, buying with coupons, or looking to sign up for point programs.

These are a few ways that Canadians have looked to cut their grocery costs and save during these difficult times with inflation in Canada.

The increasing costs could mean some families spending hundreds of dollars more on their grocery bills this year. And it has been pushing more Canadians to look to food banks for help.

For Canadians who are already spending 40%-50% of their income or more on their shelter costs alone they are not going to have much room to absorb those increasing costs for their daily living needs.

Stress about inflation in Canada

Surveys have suggested that inflation is a major concern for many Canadians today, a number of people are worrying about their financial future related to inflation and whether or not rates might soar.

Finance experts have warned that it is those lower income and fixed income individuals that we can expect will suffer greater with that increase in cost of living.

Inflation today is a top issue for many Canadians as they wonder what politicians might do to advance that issue and work to address it in a meaningful way.

Charities addressing food insecurity

There are hundreds of food banks located around Canada, with a variety in BC to be found serving the community.

These different food banks and charitable organizations are helping to keep Canadians fed and working to help keep those individuals and families from going hungry.

These food banks are doing vital work by stepping in to address that food insecurity around the province and the nation.

As grocery costs climb for families around the country they also are going to be climbing for these organizations that purchase goods to meet those needs for others who are struggling with food insecurity.

Food Pressure Rising in Canada

According to Canada’s Food Price Report for this year it has been anticipated that we would see food prices rise around Canada.

This report is published annually and predicts that we might see between 5% to 7% increase in food costs for Canadians.

The expected food price increases are coming at a time when Canada is seeing inflation that it has not seen in years.

The cost of living today is becoming an increasing topic of concern with politicians and those who are worried about the economic future for themselves, their families, and communities.

The rise in prices for food and other goods is already prompting some Canadians to change their habits and go looking for a deal when possible.

Starbucks Raising Prices

It looks like Starbucks is one company that is set to raise their prices on their menu as well, along with others who have already taken to doing this since the start of the pandemic in the face of historic supply chain woes.

Citing increasing costs for supplies and labor costs Starbucks has suggested that it will move to raise prices in 2022.

Those Starbucks price increases are expected to be taken as additional pricing actions that they meant to balance and try to offset those pressures that they are seeing from things like supply chain difficulties and inflation.

These Starbucks price increases also follow changes on an increase in wages for Starbucks staff as well.

Inflation Squeezing Canadian Budgets

The growing prices for food in Canada could add hundreds of dollars onto the grocery bills for Canadian families and individuals. For Canadians on a low income or fixed income this means that they are especially going to struggle with that increase in cost of living for themselves.

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Some categories are also expected to see high price increases than others. For baked goods for example, it could be anywhere between 5% to 7% food price increase, fruits between 3% to 5% price increase, and vegetables between 5% to 7% increase for the price of goods.

Large portion of Canadians have difficulty meeting food needs

One recent poll suggested that about 60% of Canadians might have difficulty meeting their food needs and there are many around the country who are food insecure.

There are hundreds of thousands of individuals in one province alone, like Ontario, who might need to access food banks to supplement their food or be able to access food.

During the pandemic we also saw that these resources were overwhelmed by the growing demand for help with feeding Canadian families.

Dairy and fresh produce items are those which are expected to see noticeable price increases, among other goods. Eventually, more of those items might become unaffordable to Canadians.

Around Canada those rising food costs due to inflation and more are expected to be especially difficult on the vulnerable. And not many Canadians have room to absorb those changes when they are already paying high costs for housing and more.

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60% Worried About Inflation

One CIBC survey from last year showed that about 60% of Canadians were worried about inflation. The rising cost of food and other goods is on the minds of many around the country. We also saw that this became an important voting issue as well.

A large portion of Canadians today worry that their paychecks won’t be able to keep up with that inflation.

One study by Angus Reid Institute found that 4 in 5 Canadians say that the increase they’ve seen in cost of living has outpaced any income growth that their household might have seen.

Will We See An Increase In Rates?

While there are some who are suggesting the idea of, and waiting for, an increase in rates to try and offset those inflation worries and economic concerns, other Canadians say that this would have a major negative impact on their finances for their household.

Overall, this is an issue facing millions of Canadians who are concerned about the economic wellbeing of themselves, their families, and their communities, the country as a whole.

As inflation in Canada pushes prices higher this concern isn’t going to go away and isn’t expected to correct itself on its own.

Annual Inflation in Canada Highest Since 1991

Inflation in Canada has been soaring to new levels, recently hitting the highest level of inflation seen since back in 1991. This means Canada is seeing a 30 year high inflation.

Canadians are already feeling the rising prices at the grocery stores and at gas pumps, in other places around the market. The cost of living is rising along with those prices.

Another area that has also faced criticism for its dramatic rise in prices is real estate, which continues to price millions of Canadians out of the dream of owning a home one day.

Some cities in Canada are among the most expensive places to live in the world, like Vancouver and Toronto. This means that those middle class and lower income families and individuals are continually priced out of the area.

Already, we’ve heard stories about British Columbians looking to move to other parts of the country to try and find a more affordable lifestyle. Inflation and cost of living are a big issue for many Canadians.

In the most recent election it was seen that cost of living was just as important for many, if not more so, than the pandemic itself as an issue of concern. People want to know if, how, and when, things are going to get better on the front of affordability in Canada.

Changing Habits to Save Money

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Some Canadians are already changing their shopping habits to try and save some money where they can. You can even find some Facebook groups where they are also sharing tips with one another and information about seeing price increases on different items.

With that inflation increasing to new highs that haven’t been seen in years it means the cost of living is going up dramatically for millions around Canada.

Meat prices have been growing faster than inflation as well, with bacon seeming to lead the pack on the price rise.

The inflation increasing places a great deal more pressure on social community resources that are there to fill that gap and meet the need of those who are food insecure around the nation.

Bank of Canada holds rates steady for now

The Bank of Canada has suggested that the risks surrounding inflation are reasonably balanced, but that a rising path for interest rates would be required for bringing inflation back to target. But when might they start to make that move to increase? It isn’t happening now as they’ve just announced they are keeping it unchanged as of last week.

Still, this doesn’t mean an increase isn’t off the table they’ve warned going forward.

There are a wide number of Canadians who are food insecure and who do rely on those social community resources to help to fill the void that there is.

For those who are on a fixed income, as well as other lower income families and individuals, experts have warned that it is especially difficult for them to tackle that rising cost of living.

The problem of inflation has already prompted a number of people to ask the question of whether or not the inflation can be stopped, or if things might get worse before they get better etc. These are questions that Canadians are waiting to have answered from those who have been tasked with attempting to control and monitor inflation in the country.

One Ipsos poll found that about 80% of Canadians are concerned with inflation and think it will worsen the cost of living.

As Canadians continue to struggle with affording a place to live and being able to put food in the fridge this will continue to remain an important issue with many Canadians who are looking for things to get better affordability wise around the country.

The same poll found that about 24% of Canadians wouldn’t be able to absorb a rapid increase in the cost of living, they are already being stretched thin. A number of Canadians around BC and other parts of Canada are already spending much more than 30% of their income on shelter alone.