A new Ipsos poll is highlighting the troubling outcome of Canada’s ongoing affordability crisis, but a Calgary economist says there is much to be positive about.
In the latest poll, 46 per cent of respondents said they’re losing sleep over the increased cost of living, while 47 per cent said economic pressures were taking a toll on their personal relationships.
However, Moshe Lander, a professor of economics at Concordia University who is based in Calgary, says Canada’s economy might be in a better position than you’d think, based on a few signs, such as recent GDP trends.
“Part of what we say is messed up is that housing prices are at near record highs. So that means that if you’re a homeowner, you probably have more wealth at this point in your life than you would have ever had,” he told 660 NewsRadio.
“The stock market is doing well. Interest rates are coming down, and where they’re coming down, they’re coming down from generational highs.”
Nearly two-thirds of those polled by Ipsos, or 63 per cent, said the Bank of Canada’s previous rate cut in June didn’t help advance their personal financial situation, and 64 per cent said it didn’t help with their overall happiness.
The survey also found that 43 per cent of Canadians expect economic conditions to get worse regarding inflation when compared to only nine per cent believing it will get better. Thirty-four per cent anticipate that the national economy will fare worse, compared to 10 per cent thinking it will improve.
Lander says there’s no doubt the country is in an affordability crisis, but it’s important to remain as optimistic as possible, especially if you’re trying to improve your financial situation.
“The economy goes up, the economy goes down. Albertans should realize that better than anybody in this country because we have the most wild business cycles that rise and fall with the oil price,” he said.
“We’ve been through worse. We’ve gotten through it. We’ll get through this. And I think if you approach it positively and with confidence, it’s a lot easier to get through it.”
He says unemployment, even though it did tick upwards last month, is significantly lower than usual, and interest rates are coming down.
“There’s an occasional quarter where it might be slight negative growth, but even when it shrinks, it’s not by a substantial margin in any way. The unemployment rate has ticked up. It’s around 6.3 per cent now. But by Canadian standards, 6.3 per cent is fantastic,” he said.
The poll had a sample of over 1,150 Canadians, who were also asked how they were saving money.
The strategies include dining out less (56 per cent), shopping at multiple grocery stores (45 per cent), opting for more budget-friendly food options (37 per cent), delaying large purchases (28 per cent), and delaying any potential moves (25 per cent).