Canadians are going house poor across all income levels, highlighting just how difficult it’s become to attain affordable housing. A recent survey of approximately 1,000 Zoocasa readers reveals that nearly one in four respondents (24.3%) are spending over 30% of their household income on housing costs, including rent and mortgage.

According to popular financial guidelines, including those from the Canadian Mortgage and Housing Corporation, housing is considered unaffordable if a household spends more than 30% of its income on housing. The Zoocasa findings show that both low-income and high-income earners are overextending their budgets and becoming “house poor”.

While those earning under $100,000 are more likely to spend over 30% of their income on housing, at 29.9% compared to 22% of higher-income earners, this cost burden still affects a significant portion of both groups.

To better understand how homeowners and buyers across income levels feel about today’s real estate climate, Zoocasa analyzed nearly 1,000 survey responses and compared responses from those earning under $100,000 to those earning above.

An infographic that reads "What Percentage of Your Household Income Goes Toward Housing Costs?". Below the title it says 29.9% of respondents with incomes under $100,000 reported spending more than 30% of their income on housing. 22% of respondents with incomes over $100,000 reported spending more than 30% of their income on housing. This suggests that both low-income and high-income Canadians are going house poor.

High or Low Income, the Problem Is Housing Prices

Both high-income and low-income households agree that cheaper housing options are needed to tackle the affordability crisis.

The largest share of respondents earning over $100,000 said that if they were home buyers in today’s market, cheaper housing options would make them feel more confident about affording a home (36%), followed by a higher income (33.3%) and lower interest rates (19.1%).

Similarly, among respondents earning under $100,000, most cited cheaper housing options as the factor most likely to boost their confidence (32.3%), followed by a higher income (29.9%) and lower interest rates (21.2%).

An infographic that is titled "If you were a home buyer in today's market, what would make you feel more confident about affording a home?" and shows that Both low and high income Canadians are going house poor and need cheaper housing options.

Respondents across all income levels also agreed that affordable and stable housing options have the greatest impact on their overall quality of life, with 50.2% of those earning over $100,000 and 58.1% of those earning under $100,000 saying so. The next most cited answers for both income groups were community safety and security, access to green spaces and parks, and proximity to work/school/essential services.

Rising Costs Hit Lower-Income Households Harder

What worries modern homeowners the most: paying their monthly mortgage bill or affording their weekly trip to the supermarket? That answer depends on household income.

Read: 3 Standout Canadian Cities to Buy Real Estate in 2025

Among expenses like housing, groceries, debt, transportation, healthcare, childcare, and education, the rising cost that concerns higher-income households the most is housing (35.6%).

For those earning less than $100,000, the top concern is rising grocery prices (38.3%), suggesting that short-term expenses weigh more heavily on lower-income households. Still, amid high interest rates and elevated home prices, 33.1% of those earning $100,000 are concerned with rising housing costs.

An infographic titled "Which increasing cost concerns you the most?". Those with incomes under $100,000 responded housing (33.1%), and groceries (38.3%). Those with incomes over $100,000 responded housing (35.6%) and groceries (30.7%).

This difference is likely driven by the financial instability many lower-income earners face. 24.1% of respondents earning under $100,000 said that if they lost their job, they could only cover their housing expenses for 3 months or less. In contrast, only 16.9% of those earning above $100,000 answered similarly. With more money available to them, high-income earners are more confident in their ability to handle rising living costs or even a job loss.

An infographic titled "If I lost my job, I could afford my housing expenses for less than three months". Below it says 24.1% of those with an income under $100,000 said yes, versus 16.9% of those with an income above $100,000

Conversely, 45.3% of high-income earners could afford to pay their housing expenses for a year or more if they lost a job, compared with just 38.7% of low-income earners.

Housing Costs Might Force Life Trade-Offs

As affordability tightens, homeowners may be forced to choose between varying financial priorities. When asked whether housing costs had caused them to delay major life milestones—such as having a big wedding, getting married, or starting a family—20.9% of respondents earning under $100,000 said they had delayed multiple milestones due to housing costs, compared to 16.4% of high-income earners.

Additionally, lower-income respondents were more likely to express concern that housing costs could affect their future plans, even if they hadn’t delayed any milestones yet (24.7% vs. 21.6%).

An infographic titled "I have delayed multiple life milestones due to housing costs.". Below it says 20.9% of those earning under $100,000 said yes, versus 16.4% of those earning above $100,000.

An infographic titled "Housing costs haven't caused me to delay any life milestones yet, but I'm concerned they may affect my future plans". Below, 24.7% of those with incomes under $100,000 said yes, versus 21.6% of those with incomes above $100,000

Lower-income earners may be less optimistic about affording future goals because, compared with their parents, they feel like they’re falling behind. While 30% of respondents earning over $100,000 said their current housing conditions are much better compared to what their parents experienced at the same age, only 15.7% of respondents earning under $100,000 said so.

Furthermore, 42.1% of respondents earning under $100,000 said their current housing conditions are somewhat or much worse than their parents’. In contrast, high-income earners were more likely to report improved conditions, with only 33.2% saying their housing situation is worse than that of their parents.

An infographic titled "Are your current housing conditions better or worse than what your parents experienced at your age?". Those with incomes under $100,000 responded: much better (15.7%), somewhat better (16%), about the same (23%), somewhat worse (23.8%), and much worse (18.3%). Those with incomes above $100,000 responded: much better (30%), somewhat better (13.8%), about the same (21.1%), somewhat worse (17.6%), and much worse (15.6%).

How Income Shapes Retirement Savings Strategies

The impact of a higher income extends beyond daily spending; it also influences long-term savings strategies.

Read: Canadian Homeownership on a $100K Salary is Harder Than it Seems in 2025

Lower-income earners were more likely to view their home as their primary source of retirement savings, with 20.3% of those earning under $100,000 saying so. On the other hand, only 12.9% of respondents earning above $100,000 said their home was their primary source of retirement savings.

An infographic titled "I consider my property to be my main form of retirement savings". With 20.3% of those with incomes under $100,000 saying yes and 12.9% of those with incomes above $100,000 saying yes.

Additionally, just 10.5% of respondents earning under $100,00 said they have other primary sources of retirement savings compared with 25.1% of higher-income earners.

Without investing in other forms of savings, lower-income earners risk becoming “poor millionaire homeowners” in retirement. Building wealth through home equity has its advantages, but when it comes to everyday expenses like groceries or gas, you need cash that’s readily accessible.

An infographic titled "I have other main sources of retirement savings besides my property". With 25.1% of those with an income above $100,000 saying yes, and 10.5% of those with an income below $100,000 saying yes. This suggests low-income Canadians are going house poor faster than high-income Canadians.

The problem for homeowners earning under $100,000 is that many are already cash-strapped, limiting their ability to invest beyond their home. This is especially true for those spending over 30% of their income on housing, and it may widen the wealth gap between median and higher-income earners.

But in many regions of Canada, even a $100,000 salary isn’t enough to afford the average-priced home. As a result, more first-time buyers are relying on gifts from their parents to enter the housing market. Without access to generational wealth and high incomes, future homebuyers will face even greater financial barriers, which makes informed planning more important than ever.

If you have questions about your local real estate market, give us a call! We can help you prepare and plan for your future real estate goals.

Methodology:

The survey was conducted between January 30, 2025, and April 28, 2025. Approximately 1,000 Zoocasa blog readers and newsletter subscribers across Canada were surveyed. The survey consisted of 39 multiple-choice questions to learn about the current real estate outlook of Canadians. The margin of error is roughly 2%.

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