As affordability challenges continue to dominate conversations across Canada, a growing number of Canadians are identifying energy costs as one of the biggest threats to their financial stability. While housing affordability has traditionally focused on home prices and rent payments, new research shows that utility bills, energy costs, and housing-related expenses are becoming an equally important part of the affordability crisis.
According to new research conducted by Abacus Data in partnership with the Canada Green Building Council, Canadians are increasingly concerned about rising energy costs, with many households struggling to manage monthly utility bills amid broader affordability pressures. The findings suggest that energy efficiency is no longer viewed simply as an environmental issue but is increasingly seen as a practical solution to improve housing affordability, lower household expenses, and protect Canadians from future cost increases.
Energy Costs Continue to Rise Across Canada
The research paints a concerning picture of how rising energy costs are affecting households nationwide.
Nearly three-quarters of Canadians, or 72%, reported that their household utility costs increased over the past year. These rising energy costs come at a time when many families are already facing higher grocery prices, mortgage payments, rent increases, insurance costs, and transportation expenses.
For millions of Canadians, monthly utility bills are becoming increasingly difficult to manage. The survey found that 60% of Canadians consider their energy costs and utility bills to be at least a moderate financial burden.
This growing concern highlights how affordability challenges extend far beyond the purchase price of a home. Canadians are increasingly focused on the long-term costs of maintaining and living in their homes.
As a result, discussions surrounding energy efficiency, affordable housing, and household finances are becoming more closely connected than ever before.
Housing Affordability and Energy Costs Are Closely Linked
The findings reveal that housing affordability cannot be separated from rising energy costs.
Half of all Canadians surveyed said that housing-related expenses consume at least 50% of their monthly household budget. This includes mortgage payments, rent, utilities, property taxes, maintenance costs, and other housing expenses.
Among younger Canadians aged 18 to 29, the situation is even more challenging. Approximately 68% of young adults reported spending at least half of their monthly income on housing-related expenses.
Renters face similar pressures. Nearly 64% of renters indicated that housing costs account for at least half of their household budget.
When such a large portion of income is dedicated to housing, even small increases in energy costs can create significant financial stress.
For many households, there is little remaining room in the budget to absorb rising electricity bills, heating costs, natural gas expenses, or other utility charges.
This reality is causing more Canadians to pay attention to energy efficiency as a way to reduce long-term housing expenses.
Financial Stress Remains Widespread
The survey also highlights the broader financial challenges facing Canadians.
Only 52% of Canadians describe themselves as financially comfortable. The remaining population is experiencing varying degrees of financial pressure.
About one-third of Canadians say they are just getting by financially, while 15% report that they are actively struggling.
The burden is particularly severe among younger Canadians between the ages of 30 and 44, renters, and lower-income households.
These groups are often most vulnerable to rising housing costs and increasing energy costs.
As affordability concerns intensify, Canadians are searching for practical ways to lower expenses and improve financial security.
For many respondents, energy efficiency appears to be one of the most promising solutions.
Canadians Increasingly Support Energy Efficiency
One of the most significant findings from the research is the growing support for energy efficiency measures.
Canadians are increasingly recognizing that energy-efficient homes and buildings can help reduce monthly utility bills and provide protection against future energy price increases.
Unlike temporary rebates or short-term relief programs, energy efficiency improvements can generate savings year after year.
Better insulation, energy-efficient windows, modern heating systems, smart thermostats, improved ventilation, and high-performance building designs can all contribute to lower household energy costs.
For homeowners, these upgrades can reduce monthly expenses while potentially increasing property values.
For renters, living in energy-efficient buildings may help lower utility bills and improve overall affordability.
As awareness grows, Canadians are beginning to view energy efficiency as an important financial tool rather than solely an environmental initiative.
Younger Canadians Feel the Greatest Pressure
The research indicates that younger Canadians are among the groups most affected by rising energy costs.
More than seven in ten Canadians under the age of 45 say energy bills place meaningful pressure on their household finances.
This demographic is already facing some of the country’s most significant affordability challenges, including high housing prices, elevated rental costs, student debt obligations, and inflation-related expenses.
For these households, increasing energy costs can make an already difficult financial situation even more challenging.
Many younger Canadians are therefore showing strong interest in solutions that can reduce utility expenses and improve affordability over the long term.
Government Action Receives Broad Support
Another notable finding is the widespread support for government involvement in improving access to energy efficiency solutions.
Many Canadians believe governments should play a role in helping households adopt energy-efficient technologies and building upgrades.
Support exists across different income groups, age categories, and regions of the country.
Canadians appear to recognize that while energy efficiency can generate significant savings, the upfront costs of upgrades can be difficult for many families to afford.
Programs that help offset renovation costs, improve building standards, or encourage energy-efficient construction are increasingly viewed as investments in affordability.
This shift in public opinion suggests that Canadians see energy efficiency as a practical policy tool capable of addressing both affordability concerns and long-term sustainability goals.
Why Energy Efficiency Is Becoming Central to Canada’s Affordability Debate
The conversation around affordability in Canada is evolving.
For years, public discussions focused primarily on home prices, mortgage rates, and rental costs. While these issues remain important, rising energy costs are adding a new dimension to the affordability challenge.
Canadians are increasingly recognizing that the true cost of housing extends beyond monthly rent or mortgage payments.
Heating, cooling, electricity, water usage, and other utility expenses play a major role in determining whether a household can comfortably manage its finances.
As utility bills continue to rise, energy efficiency is emerging as a critical part of the affordability conversation.
The latest findings from Abacus Data suggest that Canadians are no longer viewing energy efficiency solely through an environmental lens. Instead, they increasingly see it as a direct way to reduce energy costs, improve housing affordability, and create greater financial stability.
With 72% of Canadians reporting higher utility bills over the past year and a majority describing energy costs as a financial burden, the demand for practical affordability solutions is likely to continue growing.
For many households, energy efficiency may become one of the most important tools available to help manage rising living costs and build a more affordable future.
