Oct 8, 2026
If your grocery cart has been getting lighter while your rent or mortgage payment stays stubbornly high, you are not even close to alone.
In fact, roughly two-thirds of Canadians (66%) made at least one financial sacrifice in the past year to afford housing, according to Home at What Cost?, new research from Habitat for Humanity International, a global non-profit housing organization working in more than 60 countries. Worldwide, 3 in 4 of the more than 30,000 people surveyed across 22 countries cut back on at least one expense.
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The real problem is what people are having to cut back on. For a lot of Canadians, it’s the exact two things keeping their finances floating: their grocery budget and emergency savings.
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What are Canadians giving up to stay housed?
Over the past year, 36% of Canadians spent less on food or groceries, 25% used savings or emergency funds and 40% cut back on social activities to keep up with housing costs.
Most households are stretched to the limit right now. While 91% of Canadians feel safe in their current homes, nearly half (44%) worry that just one major surprise, like losing a job, getting sick or facing an unexpected bill, could put their housing at risk.
“Canada’s housing crisis has become an opportunity crisis,” Pedro Barata, president and CEO of Habitat for Humanity Canada, the national charity affiliated with Habitat for Humanity International, said in a statement.
Younger adults are feeling this pressure the most. Nearly half of young Canadians (46%) say housing is one of their absolute biggest sources of stress, well above the global average of 35%.
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Why is cutting food and savings a risky fix?
Trimming groceries or dipping into savings can feel like the least painful way to absorb a rent increase. But both moves weaken your ability to handle the next hit.
An emergency fund is built for the exact nightmare almost half of Canadians are worried about. Once that safety net is gone, the next broken car or missed paycheque usually lands straight on a credit card — adding high interest payments to a budget that’s already stretched to the limit.
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Groceries are one of the few flexible expenses in a monthly budget, making them an easy target to cut. But when trimming your food bill becomes a monthly necessity, that’s usually a sign that skyrocketing housing costs, not your grocery habits, are the real issue.
Have Canadian renters given up on owning?
Many have. More than half of non-homeowners in Canada (56%) don’t expect to ever own a home. That’s the highest rate of any country surveyed, blowing right past the 23% global average. Among Canadians who don’t own a home, 54% say prices are completely out of reach, while 41% simply don’t have enough saved for a down payment.
That kind of pessimism can mess with your budgeting. When owning a home feels impossible, it’s easy to throw in the towel on saving altogether — which only leaves you more vulnerable when life throws a curveball.
How do you know if housing is eating too much of your budget?
The Canada Mortgage and Housing Corporation (CMHC) offers a simple benchmark: housing costs should be less than 30% of before-tax household income.
On an $80,000 household income, that comes out to roughly $2,000 a month. Creeping over that threshold doesn’t mean you’re instantly broke, but the higher you go, the more likely you’re quietly draining your grocery and savings budgets to make up the gap.
What to do now
Run your own 30% check
Add up your rent or mortgage, property taxes, condo fees and utilities, then divide that total by your monthly income before taxes. Knowing your number tells you whether you’re facing a temporary squeeze or a structural problem.
Protect a starter emergency fund
The Financial Consumer Agency of Canada (FCAC), the federal agency that oversees financial consumer protection, recommends working toward 3 to 6 months of regular expenses. Don’t let a big target scare you off. The FCAC recommends starting small with an interest-earning account you can withdraw from fee-free, like a high-interest savings account or a TFSA.
Give groceries a fixed budget line
Protect your grocery line item first. If you need to make cuts, look to trim fixed recurring expenses instead, like subscriptions, phone bills or insurance premiums.
Check for rent help
The Canada Housing Benefit is co-funded and delivered by the provinces and territories, so eligibility and how to apply depend on where you live.
Talk to your landlord or lender early
If an upcoming mortgage renewal or rent hike is going to push your budget over the edge, talk to your lender or landlord before you miss a payment, not after.
Cutting back isn’t the problem — cutting the wrong things is. If you need to trim your budget, start with the non-essentials and protect your food and emergency cash until last. And if housing keeps gobbling up more than 30% of your income month after month, that’s a clear sign to address housing head-on, whether that means finding a roommate, moving to a cheaper spot when your lease is up, or restructuring your mortgage renewal.
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Amy Tokic is an SEO content editor for Money.ca. She holds a B.A. in Communications from the University of Windsor. Amy is an award-winning author and has been writing professionally for 15 years, publishing articles in the lifestyle and health sectors.
