The escalating cost of living is profoundly affecting Canadians from all walks of life, underscoring the urgency for us to advocate for governmental intervention. The pillars of our concern—housing, food security, and the overarching cost of living—demand immediate attention. Personally, the surge in grocery prices, energy bills, and mortgage payments has compelled me to re-evaluate my financial habits and adapt accordingly. It’s crucial to examine the root causes of this financial strain and explore viable strategies to mitigate its impact on our daily lives.
Housing shortage
According to a National Bank of Canada report, housing affordability significantly worsened in the third quarter of 2023. After some improvements in previous quarters, many homeowners are struggling, and some feel uncertain about ever entering the housing market. I don’t envy young people today who want to buy their first house. The housing supply has not kept pace with demand leading to the loss of affordability. Not enough housing supply as people from Vancouver and Toronto head to Alberta. The government is working with municipalities, but it will take time for these developments to come to fruition. Government relief with funding is welcome, but let’s also increase the labour pool in construction and encourage more people to enter the trades.
Food security and rising grocery prices
I don’t know how single mothers with children can afford to pay for food, clothing, utilities and a mortgage. I struggle with my wife and my daughter to make ends meet. Two years ago I used to spend about $120 a week, but now it has doubled. Meanwhile, large grocery stores like Loblaws posted record profits at the expense of shoppers. We need to ensure more equitable practices in the grocery industry to protect our food prices from escalating. There are talks about a Code of Conduct with grocery stores that hold a monopoly i.e. Loblaws so it is encouraging; this aims to create more balance in the supplier-retailer relationship and promote ethical business practices. Do you remember the bread-pricing scandal? We need to do something about rising grocery food prices and the sustainability of our food supply chain.
Rent and mortgage rates
Canadians are making difficult choices whether it is to sell their existing property or pay more upon renewal of the mortgage. When I was on a variable mortgage term, I recall paying about 1.09% interest on a 5-year term and now it has ballooned to 5%. Unless you account for the increase, it is hard to make ends meet. Renters face higher rent costs and a more competitive rental market with the influx of more immigrants and interprovincial migration. In Calgary, rental costs went up 14.3% in 2023 (highest in Canada) with a vacancy rate of 1.4%.
Power bills
Have you noticed your soaring power bills in the last 6 months? Crazy. A recent Statistics Canada survey found that in 2023, about one in 7 Canadian households (15 percent) had to make compromises to skip basic necessities — such as food and medicine. This was for at least a month to pay for their energy bill. Having unsafe or uncomfortable temperatures is a concern for many Albertans in the Winter. Unfortunately, there is no universal limit on energy prices in Canada. The Alberta government has proposed measures to protect consumers from wild price swings which is set to take effect in January 2025.
Government Initiatives
The economic situation is bleak, so we need to fix the affordability crisis. The government offers rental relief, boosted GST credits and new dental benefits, but they are temporary solutions. We need a comprehensive approach to increase housing supply and affordability that fosters collaboration among all levels of the government. The private sector and our communities also need to play a part in meeting our growing needs as our population increases. Besides housing, income disparity and unequal distribution of wealth is a concern; this affects the ability of middle-income families to afford the necessities.
Possible solutions
As the mortgage interest rate and economic market stabilizes, we still face an affordability crisis with higher costs of goods and services. Food prices continue to escalate so families are putting a huge strain on resources such as food banks. This “tipping point” forces average Canadians to be diligent in creative budgeting — reducing their debt burdens, making compromises and saving money in other areas. I know some people who buy in bulk and then split the portion with other family, friends and even neighbours. We need the government to implement policies and initiatives aimed at making rent, energy and groceries more affordable. Let’s reach out to various advocacy groups and organizations to promote government policy change.
