Housing Unaffordability

Care of Michael Shapcott- A housing activist located in Toronto:

A staggering one-in-four Canadian households are in the housing affordability danger zone – paying 30% or more of their income on housing. Even more troubling, the poorest Canadian households – renters – face the worst affordability problems.
New data released today by Statistics Canada confirms that the cost of housing – rental and ownership – has been rising faster than the rate of inflation, and has been rising faster than household incomes. Full report HERE.

That translates into a nation-wide affordable housing crisis for renters and owners, which the StatsCan numbers confirm has grown worse in the five years leading up to the 2006 Census. Behind the figures is the terrible reality that millions of Canadians don’t have enough money to pay their rent, or mortgage payments, and also cover other necessities such as growing energy costs, medicine, food, transportation, clothing and other basics.

Renters feel sharpest pain
In most parts of Canada, renters have households incomes that are about half (or less) of the income of owners. The affordability crisis is biting deepest among tenants, with more than 40% of all renters trapped in the affordability squeeze. This means that the lowest-income Canadians are facing the worst affordability problems.

Growing pain for owners
More Canadian households have moved into ownership in recent years. But the latest StatsCan numbers report that affordability problems are growing faster among owners than renters. The most recent ownership affordability report from RBC Economics (March 2008) reports: “Nation-wide housing affordability deteriorated in every consecutive quarter throughout 2007 to end up at its most unaffordable level since the housing bubble peaked in 1990.” So, the ownership market is offering no relief for tenants ensnared in their own affordability woes, and has trapped a number of new owners between rapidly rising costs and stagnant incomes.

-Michael Shapcott


What does this mean for Vancouver?
Housing bubble wise we always assume that Vancouver is safe because it is so damn nice. I tend to agree. But I do realize I might be a little naive with respect to the rampant speculation.

Time and time again we have discussed how EcoDensity will not solve our affordability problem. Brent Toderian said, at best, the supply could ease the affordability problem for now. But then what? Are we to ignore that market-housing is NOT a system that will work for 25% (and rising) of our population? RECOMMEND this Post on Progressive Bloggers CLICK HERE!