The Canada Mortgage and Housing Corporation crunched the numbers on housing affordability and found that a growing number of households spend 50% or more on shelter. The Crown Corporation categorizes these households as being in severe housing need.
“From 2006 to 2011, the incidence of Canadian households in severe housing need increased, going back to its 2001 level and reaching 5.3% (655,380 households), CMHC said in its report, entitled Households in Core Housing Need and Spending at Least 50% of Their Income on Shelter
. “Also from 2006 to 2011, shelter costs for all Canadian households increased more rapidly, on average, than household income before tax, which could partially explain the increase in the number and percentage of households in severe housing need during this period.”
The stats were pulled from the 2011 census and would prove even more sobering today, with many markets boasting massive year-over-year price gains to the average house cost.
The average Toronto home cost $465,014 in 2011. The average price in Toronto skyrocketed to $685,278 in February 2016.
Vancouver, meanwhile, saw the average price jump from $831,500 in May 2011 to $1,104,133 in February of this year.
Those were the two markets spotlighted in the CMHC report as requiring severe housing need for its citizens.
“In 2011, among census metropolitan areas (CMAs), the major cities with the highest percentages of households in severe housing need were still Vancouver and Toronto,” CMHC said. “From 2006 to 2011, Vancouver rose to first place and Toronto moved to second place.”
Statistics on affordability will likely be updated following the upcoming census. This could lead to increased funding for affordable housing.
“The federal government has committed to an investment of more than $1.9 billion through the IAH over eight years,” CMHC said. “Provinces and territories are cost-matching the federal investment.”
to read the report in its entirety.
Could this CMHC study lead to more affordable housing for potential buyers in hot markets?