2007 National Vital Signs Report
Housing
Stable, affordable housing is essential to quality of life. Owning a home is a Canadian dream, and a significant hedge against poverty. For many Canadian families, their home is their most important asset. But housing prices in Canada have increased faster than income since 2000, making it more difficult for many Canadians to purchase a home.
The ratio of average residential prices to median family income measures this gap. As illustrated below, the ratio rose from 3.23 in 2000 to 4.11 in 2005, meaning that in 2000, the cost of the average Canadian house was 3.23 times the amount of a Canadian family’s annual pre-tax income. In 2005, the house cost more than 4 times the family’s income.
The big increase from 2000 to 2005 (27.4%) is due to a 45% increase in house prices far outpacing the 19% increase in family income during that time.
Reflecting the difference in housing prices across the country, the ratio varies dramatically between Vital Signs communities, from an affordable 2.0 in Sudbury to a high of 7.2 in Vancouver, as illustrated below.
Vital Comment
"Affordable, safe, and appropriate housing is a major poverty prevention and amelioration measure. Financing shelters for the homeless is not a solution. There is a pressing need for supportive non-market housing for people whose lives are most at risk and for non-market housing (non-profit, cooperative and publicly-owned) and for low end market housing (rental and ownership) for low income Canadians. Affordable home ownership through accessible and manageable mortgages and incentives for builders can generate powerful social and economic benefits. People move out of non-profit and public housing, freeing up space in the existing stock. They develop equity in their home, improving their long term assets. This equity means debt can be paid down, opportunities for savings and investments are increased and prudent consumer spending takes place." More »
Michael Clague, President of the Carold Institute for the Advancement of Citizenship in Social Change, Vancouver, British Columbia
