Transit vs. driving: What are households spending?

In the fourth quarter of 2023, Canadian households spent $45.8 billion (seasonally adjusted, in 2017 constant dollars) on transport, accounting for 13.6% of total household consumption expenditures. This is the highest amount since the same quarter of 2019 ($46.9 billion), just before the COVID-19 pandemic.

In the second quarter of 2020, the pandemic arrived and forced a lot of travel and gathering restrictions. Consequently, expenditures on transport—which include everything from vehicle purchases and maintenance costs to fares for transit, rail and air—dropped by nearly one-third (-31.1%) from the previous quarter to $28.5 billion in the second quarter, representing about one-tenth (10.7%) of overall household expenditures.

More Canadians hopped behind the wheel and took trips on transit through 2023 amid the ongoing recovery from the pandemic. Let’s have a look at the latest data to see how Canadians are spending their transport dollars to get to work, school, errands and everything in between in their day-to-day lives.

Urban transit spending not quite at pre-pandemic levels

In the fourth quarter of 2023, Canadian households spent $1.1 billion on urban transit, down from $1.2 billion in the same quarter of 2019. However, there has been an increase in spending in most quarters dating back to the second quarter of 2020 ($221 million).

Interurban bus expenditures increased to $192 million in the fourth quarter of 2022 but have since fallen to $171 million in the fourth quarter of 2023. They were also below the $244 million that households spent in the fourth quarter of 2019, before the pandemic.

Parking expenditures up

Household expenditures on parking in the fourth quarter of 2023 amounted to $760 million. While this reflects a noticeable recovery since the second quarter of 2020, it is below the $804 million spent in the fourth quarter of 2019.

Spending up on new sport utility vehicles, trucks and vans and down on new cars and used vehicles

Households spent $12.3 billion on new trucks, vans and sport utility vehicles in the fourth quarter of 2023, the fifth straight quarterly increase and higher than the $11.5 billion spent in the fourth quarter of 2019.

Conversely, expenditures on new passenger cars have fluctuated in recent years. Households spent $2.1 billion in the fourth quarter of 2023, up from the previous quarter but down from the $3.6 billion spent in the fourth quarter of 2019.

Spending on used motor vehicles increased to $4.2 billion in the first quarter of 2023, as supply-chain challenges caused shortages on parts for new vehicles. Households spent $4.0 billion in the fourth quarter of 2023, down from $4.4 billion four years earlier.

Spending down on vehicle maintenance and repair, fuels and lubricants, up for insurance

The $3.1 billion in household expenditures spent on maintenance and repair of vehicles in the fourth quarter of 2023 marked the fifth straight quarterly decline, but this amount was up from the $2.8 billion spent four years earlier.

Households spent $9.9 billion on fuels and lubricants in the fourth quarter of 2023, the second consecutive quarterly decline and down from the $10.6 billion spent in the same quarter of 2019.

Expenditures on insurance related to transport reached $2.2 billion in the fourth quarter of 2023, the fourth consecutive quarterly increase.