Economic Analyses
The following overview of economic indicators includes several metrics relevant to understanding consumer vulnerability. These findings represent a robust and complementary backdrop for understanding other findings in this report on consumer vulnerability in Canada. The estimates presented below have been derived from Environics Analytics’ data, some of which have been sourced from Esri’s ArcGIS Online.
Original data sources include the Bank of Canada, Canada Revenue Agency, Statistics Canada, and others. The specific metrics described below include expenditure on basic needs, household credit card debt, mortgage debt and payment, household debt-to-liquid-asset ratio, rental expenditure, transportation costs, and electricity costs.
Note: Economic analyses below are presented to conform with the study survey’s amalgamation of Manitoba and Saskatchewan, the Atlantic provinces, and Nunavut and the Northwest Territories in order to enable consistent reference points with survey estimates. The study survey’s amalgamation of these regions was carried out in order to overcome sampling limitations.
Macroeconomic Analyses
Household credit card debt
The average household credit card debt in Canada stood at $10,187 in 2023 (see Figure 1). Reports from Nunavut and the Northwest Territories led the country with an average of over $14,000 in credit card debt, followed by the Yukon Territory ($12,507). Quebec ($,7,010) and Atlantic Canada ($9,386) reported the lowest provincial or territorial average credit card debt burden in Canada.
Figure 1: Average household credit card debt balance
Source: Environics Analytics (2024). WealthScapes Data 2024. Licensed from Environics Analytics.
Mortgage debt and payment
Canada features high levels of residential mortgage debt, as a proportion of gross domestic product (GDP). On average, Canadian households reported mortgage debt in excess of $386,000. BC led the country with an average household mortgage debt load of $552,357, which was followed by Ontario with an average household mortgage debt of $465,206 (see Figure 2). Once again, Quebec and Atlantic Canada stood out as having the lowest levels of associated household debt ($287,269 and $195,733, respectively). Notably, the Territories had higher levels of household mortgage debt than the rest of the country, with the exceptions of BC and Ontario.
Figure 2: Average household mortgage balance
Source: Environics Analytics (2024). WealthScapes Data 2024. Licensed from Environics Analytics.
A very similar ranking pattern emerged when looking at average monthly mortgage payments ($1,377 per month for Canada), with BC ($1,675 per month) and Ontario ($1,560 per month) reporting the highest average debt service rates (see Figure 3). However, mortgage debt payments were not proportionate to average mortgage debt balance in Atlantic Canada, where average monthly payments were comparable to Quebec, despite the average debt balance being one-third less.
Figure 3: Average monthly household mortgage payments
Source: Environics Analytics (2024). WealthScapes Data 2024. Licensed from Environics Analytics.
Household debt-to-liquid asset ratio
The household debt-to-liquid asset ratio measures total household debt relative to liquid assets. This indicator provides insight into short-term resilience and the ability to manage financial shocks, such as unexpected expenses or job loss. Liquid assets include easily accessible resources such as cash, savings, and marketable securities, which can be quickly converted to cash without significant loss in value. A ratio of 1.0 indicates that households have more debt than liquid assets, suggesting lower financial flexibility and higher risk in cases of economic shock. A higher ratio, such as 2.0 indicates that for every dollar of liquid assets, a household owes $2.00. For Canada, the ratio is 0.66. Nunavut and the Northwest Territories featured the highest vulnerability to shocks and unexpected expenses in Canada (see Figure 4). BC also had a relatively high ratio (0.79), compared to other provinces, falling closer to 0.6.
Figure 4: Average household debt-to-liquid asset ratio
Source: Environics Analytics (2024). WealthScapes Data 2024. Licensed from Environics Analytics.
Microeconomic Analyses
Monthly expenditure on basic needs
The average monthly household expenditure on basic needs, such as food, housing, transportation, and energy in Canada was $2,182 in 2023. BC and Ontario led the provinces with an average of approximately $2,426 per month, whereas Nunavut and the Northwest Territories led all sub-national jurisdictions ($2,762 per month) (see Figure 5). Atlantic Canada, including Nova Scotia, Newfoundland and Labrador, Prince Edward Island, and New Brunswick, featured the lowest average monthly expenditure on basic needs across the country.
Figure 5: Average monthly household expenditure on basic needs [1]
Source: Environics Analytics (2024). HouseholdSpend Data 2024. Accessed from Esri’s ArcGIS Online 2024.
[1] Economic data is presented to conform with the study survey’s amalgamation of Manitoba and Saskatchewan, the Atlantic provinces, and Nunavut and the Northwest Territories in order to enable consistent reference points with survey estimates.
The study survey’s amalgamation of these regions was carried out in order to overcome sampling limitations.
Rental expenditure
The cost of housing in Canada is commonly understood to be among the highest (if not the highest) expenditure for households. As previously noted, Canada features high levels of mortgage debt burden, but housing cost can also be high for renters (see Figure 6). On average, renters in Canada spend approximately $1,174 per month on housing. For renters in Alberta ($1,292), Ontario ($1,339), and the Territories ($1,370), monthly housing expenditures have been approaching $1,300, whereas in BC ($1,438) this threshold has been exceeded.
Figure 6: Average monthly total expenditure on rent
Source: Environics Analytics (2024). HouseholdSpend Data 2024. Accessed from Esri’s ArcGIS Online 2024.
Food Expenditure
Food costs accounted for some of the highest household expenditures, after housing costs. In Canada, the average total monthly expenditure on food was $1,257 in 2023 (see Figure 7). BC and Nunavut and the Northwest Territories stood out with the highest reported monthly averages ($1,393 and $1,374, respectively). Households in the Yukon Territory ($1,087) as well as Atlantic provinces ($1,110) reported the lowest average total monthly expenditures on food.
Figure 7: Average monthly total expenditure on food
Source: Environics Analytics (2024). HouseholdSpend Data 2024. Accessed from Esri’s ArcGIS Online 2024.
Transportation expenditure
Reliable and affordable transportation is a critical component of a person’s ability to meet their daily living needs, such as making medical appointments, accessing food and other services, as well as commuting to work. The average monthly cost of transportation (public and private) was not unsubstantial (see Figure 8). For most of the country, with the exception of the Territories, the monthly cost of private transportation was approximately $1,000 or more. This cost category was noticeably lower in the Territories, where public transportation costs exceeded those of the provinces.
Figure 8: Average monthly household spending on public and private transportation
Source: Environics Analytics (2024). HouseholdSpend Data 2024. Accessed from Esri’s ArcGIS Online 2024.
Electricity costs
Electricity was viewed as the leading cost category for understanding household energy security. In Canada, the average household expenditure on electricity was $75 per month (see Figure 9). BC and the Yukon territory featured the lowest average monthly household spending on electricity. In contrast, Nunavut and the Northwest Territories ($131 per month) as well as Atlantic Canada ($99 per month) reported the highest levels of monthly household expenditure in this cost category.
Figure 9: Average monthly household expenditure on electricity
