The latest report on Canada’s household spending became official through Statistics Canada for the year 2021. The survey gave insights into the spending habits of the people residing in Canada. It shows the goods and services they prefer to spend their money on. In addition, the report also shows the amount of their income that is spent on a particular category.
Newcomers can use the report’s findings to understand their upcoming expenditures in Canada. A recent report by Statistics Canada states that in 2021, Canadian households spent around $67,126 on goods and services, with a 2.7 percent reduction in expenditure compared to 2019.
Since 2010, this decline turned out to be the first downward trend. Between 2019 and 2021, the consumer inflation rate emerged to be 4.1 percent. Also, the general decline in the median annual household expenditure is firm at 6.5 percent, showcasing an overall reduction in the average expenditure habits of Canadian households.
Between 2019 and 2021, the consumption of goods and services saw a massive downfall across several spending categories in Canadian households. All of this was a result of the pandemic phase.
Notably, most study results will be biased toward specific directions, such as transportation, because they may have become normal now.
The following topmost categories for expenditure emerged in 2021:
- Housing – with 31.4 percent
- Food – with 15.4 percent on food, and
- Transport – with 15 percent
The latest report on Canada’s household spending – key insights
Housing
In 2021, families in Canada spent nearly $21,106 on housing, showcasing a rise of 4.5 percent from 2019. This rise in the spending habits of Canadians resulted from enhanced rent and homeownership costs for renters and mortgaged new immigrants.
In addition, the renter’s accommodation payment accounted for $15,256 in 2021, indicating a rise of 5.9 percent. The total expenditure was a result of the rent, and the median rent payment stood firm at $13,060. This meant a rise of 6.8 percent from 2019.
In addition, homeowners with mortgages had an average expenditure of $33,118 on which they spent their money. This indicated a rise of 7.8 percent compared to 2019. Over 50 percent of the money was being contributed to mortgage payments, leading to a rise of 9.1 percent from 2019.
Several other housing costs related to communications or entertainment were prevalent, including internet, phone service, and digital entertainment devices. The communication expenditure level increased in 2021, accounting for around $3,001 per household. This represented a rise of 12.4 percent from 2019.
The increase happened due to the rise in spending on the following:
- The spending rose to 114.1 percent on telephones and equipment.
- 21.7 percent increase in internet services.
- An increase of 30 percent in digital services spending.
- 68.7 percent of the rise in postal, delivery, courier, and other communication services.
Transportation
The median transportation cost for households in Canada in 2021 was nearly 10,099. This represented a decline of 20.7 percent in the overall category expenses in contrast to 2019. The total cost of private transportation, such as Uber or taxi, was nearly $9,501 out of the overall cost. The median expenditure on automobiles, trucks, and vans accounted for $4,083 in 2021. This means a decline of 16.7 percent from 2019.
The average spending on gasoline and other types of fuels observed a downward trend of 14 percent. This accounted for a $2,080. This amount is in sync with the average gasoline cost, with a rise of 12.8 percent between 2019 and 2021.
The public transport expenditure declined, with a median Canadian household expenditure of $598 in 2021. This indicated a decline of 50 percent from 2019.
Entertainment-related services and restaurant-based food
The average household expenditure on recreation was nearly $4,223 in 2021, representing a decline of 8.7 percent from 2019. This decline occurred due to a downfall in spending on entertainment services. These include performing arts, events, movies, theatres, and trips, accounting for a significant 55 percent.
In 2021, resulting from the pandemic phase, several restaurants began their delivery services or had to function at a lesser capacity. This gave rise to the decreased median household expense on food from restaurants compared to 2019. It indicates a decline of 21.1 percent, accounting for $2,189.
The opposite of the above was observed in the food bought from stores. The spending on such food items increased to $8,065 in 2021, indicating a 7.0 percent increase.
The differences in spending habits among provinces
The British Columbia and Alberta households in 2021 had the highest median expenditure on goods and services. This means $75,028 in British Columbia, while $75,003 in Alberta. Contrarily, the average lowest expenditure was seen in New Brunswick and Quebec at $57,582 and $57,889, respectively.
Shelter
The highest expenditure in housing emerged in British Columbia and Ontario, reflecting $24,594 and $24,101, respectively.
Contrarily, the lowest expenditure on shelter occurred in New Brunswick and Newfoundland and Labrador. This means $14,685 in New Brunswick and $14,736 in Newfoundland and Labrador.
Out of the overall consumption, households in Ontario distributed the highest share of their income to housing. This represents 34.6 percent. On the other hand, Newfoundland and Labrador contributed the lowest at 24.4 percent.
The maximum increase in median housing spending between 2019 and 2021 occurred in Prince Edward Island. This accounts for a rise of 10.7 percent. Next, there was a 7.8 percent increase in Ontario.
Transportation
Manitoba and Alberta households observed the most significant average expenditures in transportation among all provinces. This indicates expenditure amounts of $11,230 and $11,066, respectively. On the other hand, Quebec accounted for the smallest amount of $9,409.
The chief reason behind this was Manitoba and Alberta’s evident expenditure on private transport facilities. This accounts for $10,798 and $10,438, respectively. However, in Quebec, the expenditure happened to be $8,979.
Regarding public transportation, British Columbia and Ontario observed the largest median expenditures. This meant $751 and $724, respectively. Conversely, New Brunswick reported the most minor median expenditure of $277 on public transport.
The latest report on Canada’s household spending – the possibility of a changing scenario
Notably, the pandemic phase had a significant effect on the outcomes of this study. This has resulted in the upcoming changes in spending habits in Canada. For instance, in 2021, transport expenditure went through a significant decrease due to a volatile car market and lockdowns.
The median cost of cars in Canada has risen consistently, resulting in a decline in expenditure. Furthermore, this has made Canadians more dependent on public transport amidst the closure of lockdowns, and people have resumed work. However, with the increase in gasoline costs will lead to a rise in expenditure in the upcoming years.
These exact reasons will also lead to increased expenditures on recreational services. This is likely because of the labor shortages in retail and tourism.
This is also after the resumption of recruitment practices at a moderate level as Canadians go back to brick-and-mortar stores.
Shelter is a category of expenditure that has risen since 2021. The Statistics Canada data reveals that there has been a consistent rise in housing costs due to rental prices. This increase took place at an actual expedited speed within three decades. It is also likely that the prices will continue to rise at moderate levels.
Moreover, enhanced interest rates also affect homeowners with a mortgage. Further, this will cut the supply and the rising rental demand.
If you wish to know about Canadian immigration, connect with our immigration experts at MakeHomeCanada. Their considerable experience in the immigration field can help you. You may write to us [email protected]
