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2012 housing
2012 housing
2012 housing
2012 housing
2012 housing
2012 housing
2012 housing
2012 housing
2012 housing
2012 housing
2012 housing
2012 housing
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2012 housing

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  • 1. HousingPercentage of Households Spending 30% or More of Income on Housing
  • 2. Significance• Canadians who allocate a high proportion of their income for housing are more vulnerable to an abrupt change in financial circumstances.• Households may spend a large proportion of their income on housing for the follow reasons: – housing prices are high; households value housing for consumption and/or investment purposes; or households are poor.
  • 3. Core Indicator• The two indicators for measuring household spending on shelter distinguish between renters and home owners: – Proportion of households spending more than 30% of income on gross rent (renters) – Proportion of households spending more than 30% of income on owner’s major payments (home owners)• In Canada, approximately 40% of households who rent, and 17% of home owners spend more than 30% of their income on housing.
  • 4. Renters in Canada’s Major CMAs• “Gross Rent” includes: monthly rent payments, electricity, heat and municipal services.• At the CMA level, Québec had the lowest proportion of households spending more than 30% of income on gross rent at 33.0 %, 7.3 percentage points lower than the national average of 40.3% (see following chart).• On the other hand, in Kingston nearly half (48 %) spend more than 30% of their income on gross rent, a rate 7.8 percentage points higher than the national average.
  • 5. Percent of Households Spending More than 30% of Income on Gross Rent for Major CMAs, 200560.050.040.030.020.010.0 0.0 Source: Census, 2006.
  • 6. The Impact of Average Rental Costs• One of the major reasons for households spending a high proportion of their income on gross rent is simply that rent is relatively more expensive in some cities (see following chart).• Other factors could be that households are choosing to live above their means, and/or high price of electricity bills, heating bills, or other municipal expenses
  • 7. Comparison of (1) the Percent of Households Spending More than 30% of Income on Gross Rent and (2) the Average Annual Rent for a Two Bedroom Apartment as aPercent of Median Pre-tax Annual Economic Family Income for Major CMS, 2005 18.0Rent for Two Bedroom Apartments as a Per Cent of 17.0 16.0 Median Family Income 15.0 14.0 Canada 13.0 12.0 11.0 10.0 35.0 37.0 39.0 41.0 43.0 45.0 47.0 49.0 Per Cent of Households Spending More than 30 Per Cent of Income on Gross Rent Source: CMHC, 2011; Statistics Canada, CANSIM Table 202-0411 (SLID) and Census (2006).
  • 8. Home Owner’s in Canada’s Major CMAs• Owner’s major payments include: mortgage payments, condominium fees, property taxes, and municipal service fees (electricity, oil, gas, coal, wood, water, etc.)• Toronto and Vancouver tied for the CMAs with the highest proportion of households spending more than 30% of their income on housing at 27.1 % (see following chart).• Quebec had the lowest proportion at 10.6%, followed by Winnipeg at 11.6 %.
  • 9. Percent of Households Spending 30% orMore of Income on Owner’s Major Payments of Major CMAs, 200530.025.020.015.010.0 5.0 0.0 Source: Census (2006).
  • 10. The Impact of Average Residential Prices• Housing prices affect the proportion of income families spend on shelter, which is a result of the fact that housing is a necessity that homeowners are willing to pay for (see following chart).
  • 11. Comparison of the Percent of Households Spending More than 30% of Income on Owner’s Major Payments and Ratio of MLS Average Residential Prices and Pre-Tax Median Economic Family Income for Major CMAs, 2005 7.00Ratio of Average residential Prices and Median 6.00 5.00 Family Income 4.00 Canada 3.00 2.00 1.00 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 Percent of households spending more than 30% of income on owners major payments Source: CMHC, 2011; Statistics Canada, CANSIM Table 202-0411 (SLID); Statistics Canada and Census 2005.
  • 12. Renters vs. Home Owners• Overall, there seems to be more renters than home owners who spend more than 30% of their income on housing.• The average for all CMAs was 17.1 % of home owners and 41.7 % of renters.• This indicates that renters are generally poorer than homeowners and, as a result, must spend a higher proportion of their income on shelter.

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