Rising home prices weighed more heavily on Canadians even as inflation fears eased
Money remains the leading source of stress for Canadians, and anxiety over housing costs grew sharply, according to FP Canada’s 2026 Financial Stress Index.
The share who named rising home prices as a major worry rose to 25%, up from 20% three years earlier, even as broader inflation concerns eased.
The findings landed against a backdrop of stubborn affordability pressures. Canada Mortgage and Housing Corporation (CMHC) has warned that millions of additional homes would be needed over the next decade to restore pre‑pandemic affordability, and that prices are still expected to rise even as sales activity recovered.
In January, affordability improved in 12 of 13 major Canadian housing markets, according to Ratehub, although the highest drop in average monthly mortgage payments was still just $100, in Vancouver.
Housing costs drive a new wave of stress
Everyday expenses such as groceries continued to bite, with 64% of respondents citing them as a key pressure.
However, concern over housing costs moved in the opposite direction of inflation: while the share worried about inflation fell to 55% from 63% in 2023, anxiety over rising home prices increased.
FP Canada’s survey, based on more than 2,000 Canadians, suggested affordability concerns are becoming more concentrated around shelter.
“Canadians are taking matters into their own hands, while juggling everyday expenses like groceries and huge purchases like a home,” said Zena Amundsen, CFP, owner of Astra Financial Services in Regina, Sask.
“It’s encouraging to see more Canadians choosing to save their hard-earned dollars. That tells us they’re taking thoughtful steps to improve their financial well-being.”
Younger adults reported stress around saving for major purchases and job security, while middle-aged Canadians pointed to bill payments, retirement saving and debt. Similarly, RBC’s latest Financial Flexibility Poll found that working Canadians face “record levels of financial stress” even as confidence about the year ahead edge higher.
“There is a widespread sense that household finances will come under increasing pressure, fueling heightened anxiety about economic security in the year ahead,” said Grant Bazian, president of MNP LTD, in a recent survey on household vulnerability.
Advice and planning offered some relief
Amid that pressure, most Canadians reported that they have taken steps to manage stress. FP Canada found 85% were actively trying to reduce financial strain, up from 82% a year earlier, with 42% tracking expenses, one‑third paying down debt and nearly three in ten creating a budget.
Saving also became a higher priority, with 33% saying they have put more aside this year than in 2025.
Canadians who work with a financial planner appear less rattled. Those who have a CFP or QAFP professional are less likely to cite money as their top source of stress or to lose sleep over finances, and more likely to feel hopeful about the year ahead.
“Canadians are feeling financial pressures that continue to cause them stress,” said Tashia Batstone, president and CEO of FP Canada.
“However, what the Financial Stress Index demonstrates, year after year, is that working with a professional financial planner can help all Canadians manage their financial stress, however it may affect them.”
For the mortgage industry, clients arrive more anxious about housing than three years earlier, and mortgage renewals and insurance costs are expected to keep squeezing budgets in 2026.
Brokers and lenders who could link rate strategy with frank discussions about housing risk and long-term planning are likely to be central to how Canadians navigate that stress.
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