Home ownership is slightly more affordable, according to the latest home ownership affordability survey released by RBC Economics this morning, but ownership is still not very affordable for tenant households. For instance, RBC Economics reports that a Canadian homeowner would have to pay 39% of their average weekly earnings for a typical bungalow – a drop of slightly more than one percentage point from last quarter, but still significantly above the 32% limit that RBC defines as ‘affordable’. Other experts say that the affordable guideline should be no more than 30% of income. RBC reports that a prospective owner would need an annual income of $72,500 and a down payment of $81,325 to move into that bungalow. Canada Mortgage and Housing Corporation reports that the median (middle) tenant household after-tax income in 2008 was $33,100 (less than half the income required for a bungalow), and net worth for tenant households is $14,000 (a fraction of the down payment required).
About Michael Shapcott
Michael Shapcott is Director, Affordable Housing and Social Innovation at the Wellesley Institute, an independent, non-profit research and policy dedicated to advancing urban health. Michael has worked extensively in Toronto, in many parts of Canada, nationally and internationally on social innovation, the non-profit sector, civic engagement, housing and housing rights, poverty, social exclusion, urban health and health equity. He is recognized as one of Canada’s leading community-based housing and homelessness experts.