Report says one in four Canadians house poor

Report says one in four Canadians house poor

One in four Canadians rely on subsidies or spend over 30 per cent of their pre-tax income on housing costs, including mortgages and rent, according to a report by the Conference Board of Canada.

According to the report, a household is unaffordable if more than 30 per cent of its pre-tax income is spent on household costs - a situation that more than three million Canadians find themselves in. The typical household spends 50 per cent more on shelter than on food and over five times more on shelter than on clothing.

"The quality and cost of housing are major factors in the health of Canadians," said Diana Mackay, conference board director of education and health. "However, about one-fifth of Canadian households do not have the resources to afford both good-quality homes and other health-enhancing expenditures, such as nutritious food or access to recreational activities."

The report warned that the high number of Canadians stretched too thin negatively affects their health, productivity, and national competitiveness, and increases the cost of health-care and welfare.

 

4 Comments
  • AB Mortgage Broker 2010-04-06 4:17:34 AM
    Is it really housing that's the issue? I strongly suggest it's the ease at which consumers can obtain credit. Buy now and pay later to keep up with the Jones' mentality. Every needs a roof over their head, but they don't need the 50k plus of credit debt. Flaherty needs to implement tougher restrictions. The banks are the ones handing out credit to anyone with a pulse! That said, should that loose policy get them into trouble, our wonderful Government will be there to handout another 50 Billion!! What a joke! Flaherty...pull your head out of the banks ass!
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  • JIm - AB AMP 2010-04-06 6:28:41 AM
    When I purchased my first home 35 years ago, Max GDS was 27% and I was making only $15M per year and nice bungalow cost $67M. I was single and barely qualified, and house rich but cash poor, just like my parents were 30 years earlier. Over time income rose and mortgage debt declined and then there were funds for other things - in the meantime we had to suck it up. What has changed except both income and house prices have risen with inflation? Clients can still qualify for what they can realistically afford - just don't take on all the outside debt to have the things they cannot afford - ie: flashy cars, RV's, expensive vacations etc.
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  • BC Broker/analyst 2010-04-07 1:24:14 AM
    The Cdn system is a total failure. New taxes we never had, obscene politician wages, more debate, retoric and no true decision making. Foreign investment in single detached housing in which they do not live in only hikes up the battle to try to get into housing. Low wages and third world jobs taking over local employment.

    Canadian laws limit foreign investment in airlines and other markets, why not principal residency? Stop/slow foreign ownership of homes by implementing higher downpayment requirements as well higher real estate taxes. Lower taxes for principal residency, Cdn citizenship, and downpayment for employees working for a third party employer.
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