"For economists, affordability is largely a function of wages adjusted to inflation: as long as average wages are high enough for people to pay for what they need, then the cost of living is deemed affordable. One way to gauge that is Statistics Canada's Consumer Price Index. It offers a snapshot of the prices of a metaphorical basket of eight categories, including food, education, recreation, and shelter-which covers rent, interest on mortgage payments, and even costs such as painting or installing flooring."
"A recent Royal Bank of Canada survey found that nearly half of respondents say they can't maintain their standard of living, while an October poll from Abacus Data found that 62 percent of respondents cited the rising cost of living as one of their top concerns. In other words, little has changed since the spring, when the major parties' federal election campaigns burst with pledges to make life more affordable for Canadians, including by lowering taxes and building homes."
Many Canadians report difficulty making ends meet, with nearly half saying they cannot maintain their standard of living and 62 percent naming rising living costs as a top concern. Major federal parties campaigned on affordability through tax cuts and housing construction, but long-term change remains slow. Economists measure affordability by wages adjusted for inflation, commonly using Statistics Canada's Consumer Price Index, which tracks prices across eight categories including shelter (rent, mortgage interest, maintenance). The CPI has declined over three years and wages have generally kept pace, though some public-sector wages remain frozen.
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