1 Out Of 5 Households Give Half of Their Income To The Canadian Landlords
In all talks about lofty house prices in Canada, it is easy to overlook fact that around 1/3rd of households in Canada are rented out.
And new housing index uses 2016 census data which shows that renters are too much suffering from a widespread affordability problem as comparatively to the homeowners.
For all those who own, affordability issues have been concentrated in Vancouver, Toronto and their surrounding areas. There are number of other Canadian cities and rural areas which are still affordable for the buyers.
Rental housing index shows that unaffordable housing costs is affecting number of small and mid-sized cities and rural areas across Canada.
Index’s map shows that an archipelago of rental costs from Vancouver to Alberta’s oil patch to a wide swaths of Maritimes.
According to data, at national level 4 in 10 renters are spending more than 30% of their monthly income on utilities and rent. That’s the cutoff level for what Canada Mortgage and Housing Corp. considers affordable.
And around 1 in 5 renters — 18%— are putting half or more that half of their monthly income toward utilities and rent.
According to BCNPHA i.e The B.C. Non-Profit Housing Association, It’s a “crisis level” of spending which puts people “at risk of homelessness,” .
This rate isn’t higher in pricey centres of Vancouver and Toronto, where 23% of renters hand more than half of their monthly income to the landlord.
And nowadays, no escape will be there.
In the earlier times, finding affordable rental home was as simple as moving out into suburbs. BCNPHA says that housing price in outlying areas are catching to the urban areas.
Marlene Coffey, Executive Director at Ontario Non-Profit Housing Association said that data from index shows that suburbanization of poverty, where affordability challenges are as prevalent in surrounding communities of Canada as they are all in the urban centres.