Housing costs have forced Perth-Huron residents to cut back across the board
This United Insights post is adapted from the Social Research and Planning Council’s new report, Our Stories of the Housing Crisis: Findings from the Cost of Housing Survey.
From January to April 2024, the Social Research and Planning Council’s Cost of Housing survey heard from 716 Perth-Huron residents who reported being affected by rising housing costs. Respondents were asked open-ended questions about how they were affected, how they adapted and what they wanted to share with leaders. Our report is structured around the most common themes across the dataset.
Previously, we featured the first part of our report, which focused on themes directly related to housing itself. Now we will focus on the part of the report covering how housing costs send ripples through people’s lives. First, we’ll cover the many non-housing behaviour changes reported by affected individuals, including changes in spending and changes in earning. Then, we’ll review how respondents described the effects on their overall finances and wellbeing.
People Sacrifice “Extras” to Afford Housing
The housing crisis creates difficult financial challenges. How do people cope? The number one way is by spending less — 84% of our sample reported spending less on something. 65% of respondents described cutting back on general spending, discretionary items or “extras,” or recreational opportunities. 15% described becoming thriftier including by seeking discounts, changing stores, or using coupons.
Too Many Changes to List
It is seldom enough to cut back on just one or two spending categories, as this comment from Stratford shows: “I have been trying to save money to keep afloat until (hopefully) rates go lower. I stopped eating out at restaurants, created a much leaner household budget, stopped discretionary spending, cancelled my family trip…. Almost too many changes to list.”
We Stay Home a Lot
Almost half of respondents (44%) reported cutting back on downtime activities including leisure, time with family and friends, and vacations. Many respondents described an almost total loss of social life:
“We have little to no money for anything else. We don’t eat out, we don’t do fun activities unless they are free. We also stay home a lot.” ~ North Huron
Eliminating Non-Essential Expenses
23% of respondents spent less on “extras,” including entertainment. These comments highlight that “non-essential” spending often means the “personal” spending that makes life enjoyable. From Ashfield-Colborne-Wawanosh: “I don’t buy much for myself anymore. Every last dollar goes to expenses.” Some respondents described these sacrifices in harsh terms: “We have eliminated all non-essential expenses such as family vacations and birthday parties for the kids,” said a Goderich resident.
Unable to Enjoy Things in Life
Respondents were disciplined and imaginative in finding ways to save, but the trade-offs are serious. These losses were seen as more unfair consequences of unaffordable housing: “I wouldn’t mind renting if it meant we had money left over to enjoy a night out with friends or go out for dinner, but all our money goes towards rent, groceries and utilities,” said a West Perth resident. “It feels as though we are just working to survive and are unable to enjoy things in life anymore.”
People Cut Back on Food and Essentials to Afford Housing
While slightly more respondents cut back on general spending and non-essentials, 58% of respondents cut back on essential categories like food and utilities. Once again, for many respondents, it wasn’t enough to cut back on just one or two categories, as this comment from St. Marys shows: “We’re buying all our bread, soup, canned/dry goods and toiletries at the dollar store. We’re choosing less healthy food options because they’re often cheaper. We’re unable to get new prescription glasses for myself and my wife and delaying needed dental work. We’re not fixing some major issues with an old car. Forget about getting a new one (which I need for work) — I can’t even get winter tires.”
Cutting Back on Grocery Costs
44% of respondents reported spending less on food and groceries. Many items at the grocery store fall into a grey area between essential and non-essential, and this comment from Perth East shows how hard it is to draw that line:
“I tried to cut back on unnecessary grocery costs, but this just means that I eat less so my child can eat what they need.” ~ Perth East
Food Insecurity — From Marginal to Severe
14% of respondents made comments indicating food insecurity. A household is food insecure if financial constraints prevent them from reliably accessing the food they need. People described situations ranging from marginal food insecurity, meaning worrying about food or buying fewer types of food, to severe food insecurity, like the Huron East resident who said, “I’m eating less. My family has noticed. Some have commented on my weight loss. This was unintended but is a result of hiked mortgage rates and cost of groceries.”
Sitting in the Dark
Respondents also spent less on other essentials like transportation, utilities, and clothing. Some respondents may have been able to make these cuts without experiencing hardship, but many were not. “I have gone to bed cold many nights and sat in the dark to save on electricity and hydro,” a Stratford resident said.
People Work More to Afford Housing (If They Can)
While spending less is the top way respondents have adapted to rising housing costs, 21% of respondents also adapted by trying to earn more.
Trying to Get 70 Hours a Week
15% of respondents were working more, most commonly by taking on more than one job (7%). 4% of respondents reported working more than full-time, leaving less time for family and personal well-being:
“Instead of working 45 to 50 hours a week, I’m trying to get 70 hours a week. I have less time with my son because of working more.” ~ Central Huron
Spreading So Thin
Many respondents reported reaching their limits. “I’m not eating so there’s food for my children, I’m working more hours, and I got a second job just to keep afloat,” said a South Huron respondent. “I’m literally spreading so thin. I can’t keep doing it.”
Paying Off Debt is Impossible
Unfortunately, many respondents noted their attempts to earn more were not enough to make up for increased housing costs. “I’m raising my daughter by myself in a one-bedroom apartment, trying to work any overtime I can,” said a St. Marys resident. “Paying off debt is impossible, saving is impossible. I’m only able to afford the bare necessities.”
Even With Two Full-Time Incomes
It’s not only single-income households that struggle. “I had to stop being a stay-at-home mom and was forced to go to work. I’m working long hours,” said a West Perth resident. “We have two people working full-time hours plus overtime, and there’s still nothing left at the end of the month.” These comments challenge our expectations of who ought to be able to get by. “I have taken more hours at work to try and get more income coming in. My partner and I both work full-time,” said a respondent from Huron East. “Now we struggle to make ends meet — even with two full-time incomes coming in. Our income hardly covers the mortgage, bills, gas for the car, groceries and childcare — and that’s without unexpected costs.”
Supports Have Not Kept Up
As unlucky as these dual-income households may be, some members of the community face much greater economic risks. We heard from households with much less ability to increase their income or reduce their costs, like seniors and individuals with short-term or long-term disabilities. “I have had to pick up extra shifts at work despite being physically disabled and in extreme pain due to it,” said a Stratford respondent. The supports available have not kept up — it may be an option to seek a better-paying job, but it is rarely an option to seek a better-paying benefit.
People Fall Behind Due to Unaffordable Housing
Many respondents reported that whatever changes they made were not enough to maintain their finances. One in three respondents (34%) reported an unstable or declining financial position. 11% of respondents reported saving less for emergencies, down payments, or retirement. “I have a single income and can hardly manage to pay my bills renting, let alone ever being able to save for a house,” said one resident of Perth East.
If Either One of Us Gets Sick, We’re Screwed
Living precariously from paycheque to paycheque is a reality described by one in four respondents (26%). These respondents were acutely aware of their shaky situations. “Thank the gods we are working full-time,” said a Stratford resident. “Both of us have had precarious employment in the past. If either one of us gets sick and cannot work, we’re screwed. I’m in my sixties and don’t even dream of retiring.”
Deciding Which Bills to Pay
12% of respondents took on debt (not including the debt associated with increased mortgage rates). Sometimes this was simply a matter of being unable to pay bills, as in this comment from Morris-Turnberry: “We’re deciding which bills to pay and which to defer in order to have a roof over our heads.” Sometimes this involved accessing risky financial products: “I had to take out payday loans and now can’t pay them back,” said a West Perth respondent. These risks can become realities as debts pile up.
A Never-Ending Cycle
Many of these respondents described their household finances as severely damaged. Few of them saw relief on the horizon. “I’ve had to borrow from one thing to pay rent, then borrow from another to pay another bill. It’s a never-ending cycle,” said one person from Goderich.
Unaffordable Housing Drives Distress and Discouragement
Beyond financial effects and lifestyle changes, respondents also reported that high housing costs have impacted their mental health and well-being. One in four respondents indicated some kind of psychological impact, often connected to other themes, such as reduced downtime, recreational spending, and savings. “Our household income is approximately $4,000, my rent is $3,000. I have no money for anything extra. I feel pretty hopeless and helpless at this point,” said a Goderich resident. From North Perth: “We’re saving next to nothing and a few times we had hardly enough in the account for our mortgage. All in all, it has been a hard time.”
An Awful Struggle
Working more takes a psychological toll: “At least one day a week I work days at one job and nights at my second job,” said a North Huron resident. “I’m deprived of sleep, not knowing what day it actually is. I don’t socialize much anymore, I don’t go out anymore, I’m always exhausted. It’s just an awful struggle.” Some respondents described reaching a breaking point:
“At one point, I had a second job. My mental health couldn’t handle it after working all day. I live off credit and stress daily.” ~ Huron East.
Stress on My Mind All the Time
Respondents stretched to their financial limits described a sense of dread, as in this comment from Central Huron: “If I lose my housing situation right now, I won’t be able to afford any of the rent out there and be able to put food on the table, or clothes on my back. I’m already stretched. There’s stress on my mind all the time because I never know when I’m gonna lose where I live.”
Feeling Defeated
An inability to plan for rapid cost increases shook the confidence of this Perth South resident: “We thought we had planned for the worst. Our mortgage and bills have all increased by so much we can’t keep up. The two of us have good jobs and feel defeated.” Many respondents described their self-perception shifting. “Rent is insane. I was once ‘middle class,’ but I feel like I’m now just barely escaping the poverty line,” said a Bluewater resident.
I’m Afraid I’ll Never Own
In addition to present-day stress, many respondents mourned their hopes for the future. “I’ll be stuck paying rent my entire life. Knowing I will never own a home is very disheartening,” said a Perth East local.
In many comments, the sense that homeownership was impossible was particularly discouraging. “My goal is to own my own house one day, but I am afraid I never will,” said a St. Marys respondent. 10% of respondents expressed a sense of defeat, disappointment, hopelessness, or a bitter pessimism captured by a response from South Huron: “Best of luck figuring out a solution to this problem, buddy.”
Our next post on this report will cover how respondents explained the crisis and what they want to change, plus our recommendation to increase the community housing stock. Read the full report now: Our Stories of the Housing Crisis: Findings from the Cost of Housing Survey.
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