Over half of BC residents concerned about being able to pay for rent and mortgages: survey
The sustained period of high policy interest rates and growing housing and living costs is having a cumulative effect on people’s housing situation in British Columbia.
A new Research Co. national survey suggests 56% of BC residents have been worried about their ability to pay their mortgage or rent at some point in recent months, including 18% who are “worried frequently” and 19% who are “worried occasionally.”
- You might also like:
- Metro Vancouver homeowners and investors may be facing pressures to sell due to high interest rates
- New US inflation data "ensures" a BoC interest rate cut in September: expert
- Bank of Canada's policy interest rate could dip to 3.75% by late 2024: forecast
- Missed mortgage payments are soaring in BC and Ontario -- here's why
- Some Canadians admit to skipping their rent, mortgage payments to pay for vacations
Although British Columbians face some of the highest housing and living costs in Canada, they are not the most concerned group.
An overwhelming majority (70%) of Alberta residents are concerned about mortgage or rent payments, including 23% who are “worried frequently” and 28% who are “worried occasionally.”
Ontario residents were similarly concerned, with 67% noting some degree of worry, including 24% who are “worried frequently” and 22% who are “worried occasionally.” Over in Quebec, 63% are concerned, including 16% who are “worried frequently” and 24% who are “worried occasionally.”
When asked to indicate whether they were worried about the value of their investments in recent months, 78% of BC residents expressed some degree of concern, 79% said the same in Alberta, 77% in Ontario, and 74% in Quebec.
Regarding rating the overall state of their personal finances, 52% of BC residents indicated their finances are in a poor state, 61% said the same in Alberta, and 51% in both Ontario and Quebec. Albertans and Ontarians are more likely to note “very poor.”
Albertans and Ontarians are also most likely to be frequently worried about somebody in their household becoming unemployed or their employer running into serious financial trouble.
The survey conducted in early August 2024 had a margin of error of +/- 3.1% 19 times out of 20.
According to analysts, the Bank of Canada’s first cuts to the policy interest rate in June and July 2024 did not have a major impact on home sale volumes.
Growing mortgage payments have considerably narrowed the financial capacity of many households to cover basic living costs, which is also reflected by lower consumer spending levels. Higher mortgage payments have also placed upward pressure on rents from homeowners and investors passing on their higher financing costs to tenants.
With a continued trend of stabilized inflation and deteriorating economic conditions, further cuts to the policy interest rate before the end of 2024 are likely.
- You might also like:
- Metro Vancouver homeowners and investors may be facing pressures to sell due to high interest rates
- New US inflation data "ensures" a BoC interest rate cut in September: expert
- Bank of Canada's policy interest rate could dip to 3.75% by late 2024: forecast
- Missed mortgage payments are soaring in BC and Ontario -- here's why
- Some Canadians admit to skipping their rent, mortgage payments to pay for vacations