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Housing is
Fundamental
A report to the city & county of Peterborough
13th Edition
Commentary: “.... in all the developed countries, the real problem is... the inexorable advance of
automation and the resulting hemorrhage of jobs.” Gwynne Dyer, June 12, 2018
The economy is growing and profits are up, but
Source: https://www.thespec.com/opinion-story/8663910-automation-not-trade-is-what-trump-should-really-be-
wages are being left behind. Employers must concerned-about/
play their part. Inadequate wages and high
relative shelter costs limit discretionary spending. Locally, we are fiscally unable to remedy the entire overspending dilemma. Nor is it within
An economy lacking in adequate consumer the purview of municipalities to do so. Municipalities rely on Federal and Provincial
participation is bound to shrink. Governments for housing funding. Nevertheless, can we be inactive when a household falls
into dire circumstances with no other apparent help? Just as any caring person could not
be idle while imminent danger victimizes the life of a stranger, we need to be there with a
life-line. We have the capacity locally to do that much. Surely the willingness and resolve to
As the 2016 Census Informs - do this can be found. Otherwise, we will continue to go the wrong way.
Peterborough is now:
- Paul Armstrong
Poorer, Note: “Overspending” means spending more on shelter costs than CMHC’s definition of affordability.
Less Affordable, Voices: The National Housing Strategy has declared housing a human right. The time is right
More Precarious. to influence decision makers about how to spend funds that will be coming to communities,
but we need to have the discussions now. (Housing Roundtable May 2, 2018)
• average rent increased by 2.8% (up from 1.3% in Per cent of Renter Households in
2016) (above 2017 guideline of 1.5%)
• average rent increase for 2-bedroom in downtown
“Core Housing Need”
core increased by 4% 2006 Census 2011 Census 2016 Census
• vacancy rate stable at 1.1% (one of the lowest 44.3% 48.1% 52.5%
vacancy rates in Ontario)
Source: Census Profile, Peterborough CMA, 2016
• one of the lower vacancy rates among major Ontario
”Core housing need” = spending more than 30% of total household income
centres (second year in a row)
for shelter costs
• poor supply: net increase in rental universe was
Commentary:
negligible
• no completion of condominium apartments nor Census numbers on “core housing need” reveal that housing insecurity is
assisted housing units steadily growing in Peterborough and surroundings.
2016 2017
13,011
11,21
05
0
3,4 3,6
House
Source: CMHC Rental Market Report Peterborough 2017
Total 23,807 Total 25,069
YES Shelter for
Demographic Notes
Peterborough is the CMA with the oldest age structure in Ontario
5.3% increase Youth & Families
Seniors aged 70 and older increased by 4.4% during last two years.
Population aged 15 to 44 years declined by 0.2% during same period.
Total Funding
3 Bedroom $1,190 $24.41 $47,600 Note: Regarding the savings noted above, the cost of supportive services that maintain
individuals in their apartments must be considered.
Source: Canada Mortgage and Housing Rental Market Report, FALL 2017
(Peterborough CMA) and Custom Calculations
Average number of individuals
• Market rents may or may not include heat and hydro.
• Rents are ‘affordable’ (CMHC definition) when wages are at or above the
sheltered per night in Peterborough
numbers in the chart.
• Rents are deemed affordable when they represent no more than 30% of the
gross, combined household income. (CMHC)
• Hourly wage based on an individual working 37.5 hours weekly for a full
year (1,950 hrs.)
61 63 65 69
47 57 57
2011 2012 2013 2014 2015 2016 2017
Source: Custom Calculations.
Core Housing Need and
Overspending Social Housing Wait List,
‘Core housing need’ is a useful indicator of how many households Greater Peterborough Area
are spending in excess of 30% of their before-tax incomes for Year Number on the list
shelter. It is useful in gauging the extent to which households fall
into this condition. 2017 1,642
‘Overspending’ is a valuable, quantitative indicator that is reported in
Source: Housing Access Peterborough
dollars. Knowing by how much a household overspends provides a
Note: The social housing wait list has grown by 179 names from December 2016 to December
clear picture of their housing burden. All households in core housing
2017. This is the net result after some names have been removed and more names added.
need ‘overspend’.
When we know the aggregate sum of overspending, Rent Increases - 2010 to 2017
we understand the severity of housing burden in (AMR) = Average Market Rent
the community. Rental % Change % Change
%
2010 2015 2017 Change
We know that rent supplements reduce the housing burden of an Unit 2010- 2010-
(AMR) (AMR) (AMR) 2015-
Type 2015 2017
individual household. But it is important to remember that not all rent 2017
supplements lower that burden to equal to or less than 30% of total Bachelor $590 $666 $705 12.9% 19.5% 5.9%
household income. In fact, most rent supplements cannot remove
1 Bdrm. $747 $816 $850 9.2% 13.8% 4.2%
households from membership in core housing need.
2 Bdrm. $890 $959 $988 7.8% 11.0% 3.0%
It is true, therefore, that rent supplements are unlikely to reduce the
core housing need rate for a community. However, rent supplements 3 Bdrm. $1,096 $1,172 $1,190 6.9% 8.6% 1.5%
definitely reduce the amount by which a household overspends. Inflation http://inflationcalculator.ca/ 8.67% 11.93% 3.0%
When we consider the aggregate of shelter overspending in a
community, it will be lower after rent supplements are applied. Note: 2011 and 2016 Census statistics were based on 2010 and 2015 data collections.
Source: CMHC Rental Market Reports, Peterborough CMA, 2010, 2015, 2017
Source: Steve Pomeroy, June 2017
Commentary: Bachelor and one-bedroom apartment have increased the most exceeding
https://maytree.com/wp-content/uploads/1114ENG.pdf the inflation rate for the corresponding period. Households with lowest incomes who rent
Commentary: Rent supplement dollars not only improve household living standards, these unit types sustain the higher rent increases.
nutrition and health, these dollars bolster the local economy. For obvious reasons, Note: All private rental units, including ones built or first occupied on or after November 1,
households in greatest housing crisis should be given priority for rent supplements. 1991 are subject to rent control effective April 20, 2017. In 2017, the maximum allowable
With the growth of precarious employment and low income, the risk of housing rent increase is 1.5% of the current rent. Between Jan. 1 and Dec. 31, 2018 the rent
crisis increases. increase guideline is 1.8 %.
•
•
help with analysis;
determine who should be able to accessArehousing
17.8 %
spending more than 30%
49% 2011
2016
Are spending more than 30%
13.1%
15.3%
16.1%
18.6%
-
14.4%
-
14.2%
subsidies;
76 90 %• predict whether %
on rent & utilities on rent & utilities
households can pay Butaitrent or Source: 2016 Census Results from various profiles
of total income for mortgage;
of household income and *LIM-AT Low Income Measure – After Tax – income is less than 50% of the median after-tax income
is
20
% ofthehouseholds 50%
renter households that create of their total income
bedroom apartments for 3-bedroom units on rent & utilities.
greatest concern. These 2,640
• help in deciding who gets a rental unit or mortgage. spend in excess of
wa
h
e
ro
vil
elp
rri
ilt
ha
o
lle
m
Ba
rb
Gu
Os
Ha
Be
te
Pe
Source: 2016 Census Results from various Census Profiles Median Shelter
The Low Income Measure (LIM) includes any income less that 50% of the income median. Costs and
Commentary: Almost one in five persons in Peterborough is considered to be in “low
income”. The expanding ‘core housing need’ rate in Peterborough is no mystery.
Median Income
See “Core Housing Need Municipality Comparison” in this document. - 2011- 2016
Median Household and Individual Median Monthly Shelter Costs 2011 2016
Percentage
Change
Income - After-Tax – 2016 Census Renters $850 $950 Up 11.8%
Median Household Median Individual Owners $921 $1,102 Up 19.6%
City Census 2016
Income Income Median Total Income
Before Tax
$29,294 $31,867 Up 8.8%
Peterborough $52,195 $27,691
Belleville $53,367 $28,217 Source: Census Profiles for Peterborough CMA, 2011, 2016
Edmonton
Incomes-2017.pdf
Thunder-Bay
Winnipeg Commentary: Both food insecurity and ‘core housing need’ are the result of limited
Ottawa-Gatineau incomes. In the Peterborough Census Subdivision the renter ‘core housing need’
Saskatoon rate is 53.6%.
Windsor
St. John’s Ontario Association of Food
Kitchner-Cambridge-Waterloo
Calgary
Banks Supports Portable
Guelph
Montréal
Housing Benefit
Kelowna Paid directly to tenants to provide housing costs closer to the
Lethbridge
‘affordability standard’ of 30%, this benefit would target those on
Moncton
Saint John
social assistance and the working poor. Funding would come from
Québec the provincial and federal governments both of whom have stated
Sherbrook commitments to reducing poverty.
Trois-Rivères
Saguenay The Means to Poverty Reduction
0% 5% 10% 15% 20% “If we, as a society, want to be serious about reducing hunger
Percent and poverty, we have to address our affordable housing crisis.”
Note: Core housing need is for renters and owners (Ontario Association of Food Banks) www.oafb.ca/hunger-action-month
Source: Statistics Canada,Census of Population, 2016
Commentary: Lives can be changed dramatically with income supplementation. Rent supplements bring additional The Big Squeeze:
revenue to low-income households who, upon receipt, report real living improvements. Being the most direct and
(cost) effective means of bringing a measure of ‘affordability’ to renter households, rent supplements have been
Low-Income Persons
promoted by all levels of government. in the Middle
• lack of new purpose-built rentals
• very low vacancy rate
“
• social housing inadequate to meet demand
rather than making
“affordable housing”. 2018
Housing is
Fundamental
? Commentary: In Peterborough we say there is an affordable housing crisis. As we
Housing is Fundamental gratefully
acknowledges the support of the United Way
recognize the growth of precarious work along with the swelling of low-income,
perhaps we are more accurate to say that we have an income crisis with housing uwpeterborough.ca
affordability being one of its serious outcomes.